Law Update : Issue 2

Posted on: February 27th, 2014 by STBBSiteOwner

SURETYSHIPS: AN UNAVOIDABLE NECESSITY

People often do not read documents to which they append their signatures! If, for example, you apply to the bank for a credit card, or for financing of a vehicle your business is acquiring, you assume a basic understanding of the gist of the documents being handed to you for signature, and sign it on the assumption that it would contain ‘standard’ provisions. Whether or not certain provisions in some types of agreements are ‘standard’ and expected, it is undoubtedly risky to sign any legal document without ascertaining the implications thereof. More so when you bind yourself as surety for someone else’s debts. Find out why.

read more
Summary

FINALLY – CLARIFICATION FOR LENDERS ON REQUIRED STEPS TO ACT AGAINST DEFAULTERS

Recent case law has all but clarified what steps lenders must follow in order to validly commence legal proceedings against defaulting borrowers. It is so that the National Credit Act 34 of 2005 (‘the NCA’) requires a lender to send a ‘section 129 Notice’ to a consumer before enforcement steps may be initiated, but must this letter actually reach the debtor? In other words, does the Act require the lender to ensure that the debtor received the notice personally? Or is it adequate compliance with the NCA’s consumer protection aims, if the notice was sent to the debtor at the address indicated in the loan agreement per registered post? What if the debtor never collects the notice from the Post Office?

read more
Summary

Comments are closed.

STBB Meerkats

Subscribe to our Newsletters

Visit our subscription page to view the newsletters available. You can select any number of newsletters to subscribe to.

Subscribe

You have Successfully Subscribed!