DCASA UPDATE: RECENT JUDGMENTS IN RESPECT OF THE BATION CREDIT ACT

The following judgements have been circulated by Greeff van Wyk. (www.greeffvanwyk.co.za)

STANDARD BANK OF SOUTH AFRICA LTD V MELLET AND ANOTHER (3846/09) [2009] ZAFSHC 110 (30 OCTOBER 2009)

In this case Standard Bank granted credit to two consumers in respect of a joint credit agree­ment which was secured by a mortgage bond over an immovable property.   Subsequent to that one of the consumers applied for debt review where after his obligations was restruc­tured by the Magistrates Court in accordance with Section 87 of the National Credit Act. 

 Standard Bank subsequently issued summons against both the consumers in respect of the credit agreement where after they launched an application for summary judgment. 

 The Honourable Court subsequently found that it can not grant summary judgment against the consumer who had been placed under debt review nor could it grant summary judgment against the other consumer as this would have the effect of defeating the debt review in re­spect of the consumer who had applied for debt review.

 ABSA BANK LTD vs SHAIK, FAZEL (CASE NO 09/8065 JOHANNESBURG HIGH COURT)

 A judgement dealing with section 86(2) of the NCA and in which it was found that legal pro­ceedings only commences once a summons has been issued and served on a defendant.

NEDBANK LTD v MOTAUNG (22445 / 07) [2007] ZAGPHC 367 (14 November 2007)

 A judgement dealing with section 86(2) of the NCA and in which it was found that legal steps commences as soon as a credit provider has dispatched a letter of de­mand to a consumer. The judgement therefore contradicts the judgement made in the matter of Absa Bank Ltd  v Shaik.