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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When and how to have a judgement rescinded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Applying to court to have an emolument (salary) attachment order rescinded or amended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 4: Something goes wrong with goods you have bought

Simon buys a TV set from a shop. As soon as he gets home, he finds that the TV set isn’t working. What can he do?

WHAT DOES THE LAW SAY?

The law says that if you buy something that has a fault at the time that you buy it, and neither you nor the seller know about it, then you can get your money back.

WHAT CAN HE DO?

Simon must contact the seller immediately and give the seller all the necessary information, such as the sales receipt, the date that he bought the TV set and a description of what is wrong with the goods. Simon should keep the original documents for himself and give the seller copies.

If the seller refuses to help, send them a letter with the demands. Keep a copy.

If the seller still refuses to help, try contacting any trading affiliation that the store might be registered to (e.g. Furniture Traders Association), before going to the manufacturer.

If that does not work – send a letter to the manufacturer of the product or the headquarters of the chain store. Tell them what has happened and send copies of important documents, describing what is wrong with the TV and what Simon wants done.

Simon should keep the originals of the documents for himself. If Simon is still not satisfied, get help from one of the consumer protection agencies and organisations like the Consumer Protector or the provincial consumer affairs offices. If you cannot settle the problem in any of these ways then Simon can take the case to court. Simon should only go to court as a last resort because it can be an expensive process and it can take a long time.

  • For claims of up to R20 000 Simon can sue in the Small Claims Court where no lawyers are allowed to represent him (See Small Claims Court)
  • For claims of up to R200 000 (District Courts) or R200 000 – R400 000 (Regional Courts) he can sue in the ordinary Magistrate’s Court and should use a lawyer. (See Civil claims)
  • For claims over R400 000, he will need a lawyer and an advocate to sue in the High Court unless there is an agreement with the seller to use the jurisdiction of the magistrates court.