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Chapter 13
Related Sections
1
INTRODUCTION
2
WHAT IS A CONTRACT?
3
What are the requirements for a contract?
4
Can a minor enter into a contract?
5
Married people and contracts
6
Breaking a contract
7
What happens if there is a breach of contract?
8
When does a contract end?
9
THE NATIONAL CREDIT ACT (NCA) NO 34 OF 2005
10
The National Credit Amendment Act (No 7 of 2019)
11
The National Credit Regulator (NCR) and the Consumer Tribunal
12
Rules when marketing to consumers
13
Putting a ceiling on interest rates, fees and charges
14
Types of credit agreements
15
Protection when making a loan application
16
Reckless lending
17
Debt counselling
18
Administration order
19
Role of credit bureaus
20
Where can consumers lodge a complaint?
21
CONSUMER RIGHTS UNDER THE CONSUMER PROTECTION ACT, 2008 (CPA)
22
The right to privacy
23
The right to choose (including the right to choose to cancel)
24
The right to good quality and safety
25
The right to responsible marketing
26
The right to information
27
How can consumers lodge a complaint?
28
REPAYING DEBT
29
Legal consequences of defaulting on debt obligations
30
Judgements and other court orders
31
CONSUMER RIGHTS AND REMEDIES IN THE LEGAL PROCESS
32
General guidelines for consumers
33
Defences – Prescription and in duplum
34
Debt collector’s rules
35
When and how to have a judgement rescinded
36
Applying to court to have an emolument (salary) attachment order rescinded or amended
37
Applying to court to stop the sale of your goods
38
ATTORNEY’S FEES AND CHARGES
39
BEING UNDER ADMINISTRATION
40
USING A DEBT COUNSELLOR
41
HANDING BACK (SURRENDERING) GOODS BOUGHT ON CREDIT
42
MICROLENDING AND MICROLENDERS
43
What is microlending?
44
INSURANCE
45
What is insurance?
46
Life assurance
47
Short-term insurance
48
Investment insurance
49
Retirement annuity
50
PROBLEMS
51
Problem 1: Minor entering into a contract
52
Problem 2: Breaking a promise
53
Problem 3: Breach of contract
54
Problem 4: Something goes wrong with goods you have bought
55
Problem 5: Helping a person assess their financial situation and drawing up a budget
56
Problem 6: Helping a person who has a problem with repaying debt
57
Problem 7: Helping a person who has a problem with getting credit
58
Problem 8: Granting credit recklessly
59
Problem 9: Going to a debt counsellor
60
Problem 10: Repossession of goods with a valid court order
61
Problem 11: Repossession of goods without a court order
62
Problem 12: How to respond to a summons
63
Problem 13: Repossessed goods are sold for less than the amount still owing on the goods
64
Problem 14: Getting a civil judgment in a criminal case
65
Problem 15: Being robbed at an ATM
66
Problem 16: Cell phone scams, e-mail scams and card cloning
67
CHECKLIST
68
Checklist: Particulars to take for a consumer law problem

Problem 13: Repossessed goods are sold for less than the amount still owing on the goods

Faried buys a second-hand car under a credit agreement for R60 000. He pays off R10 000 but then stops paying his instalments.

The seller gets a court order to repossess the car. After repossessing the car it is sold at a public auction for R45 000.

So far the seller has received R10 000 from Faried plus R45 000 from the auction. This is a total of R55 000. Originally Faried owed R60 000 for the car. So Faried still owes the seller R5 000 for the car (R60 000 – R55 000 = R5 000).

The seller claims the R5 000 from Faried but Faried refuses to pay because he says that he has already paid R10 000 for the car and it has been repossessed.

WHAT DOES THE LAW SAY?

The law says that Faried still owes the BALANCE of R5 000 that he has not paid. It does not matter that the seller has repossessed the car and kept the money from the auction. The seller must not lose out because Faried has not paid his account.

WHAT CAN YOU DO?

Faried must pay the R5 000 back to the seller. You can help him to try and negotiate with the seller so that he can pay the amount of R5 000 in instalments (small amounts paid every week or month).