Wednesday, 12 August 2015

Serious risk of legal action under debt review in terms of the national credit act

Risk of legal action under debt review in terms of the national credit act


Another serious risk of Debt Review process under National Credit Act Most people are under the impression that they are protected from legal action should they apply in time for a review of their Debt with a Debt Counsellor Under the terms of the Credit Act this would seem true. 
But it is not the case!

In a recent case:Naidoo v ABSA Bank (391/2009) [2010] ZASCA 72 (delivered on 27 May 2010) the court held that an application by a credit provider for the Sequestration of a consumer did not amount to litigation or other judicial process by which the credit provider exercised or enforced any right under the credit agreement between itself and the consumer. 
Based on this decision, debt review DOES NOT prevent a credit provider from bringing an application for the sequestration of the consumer whose credit agreement is the subject of court proceedings in terms of the NCA. 

A sequestration by the credit provider or a Forced Sequestration is not something you want to expose yourself to. Exit Debt Review get some peace of mind, talk to a Debt Specialist today. Meecham Prinsloo & Associates
Call/Sms/Whats App 0813166983