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When and how to have a judgement rescinded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Applying to court to have an emolument (salary) attachment order rescinded or amended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

The right to good quality and safety

THE RIGHT TO ONLY PAY FOR QUALITY SERVICE AND REPAIRS

Consumers have the right to have services and repairs done “in a manner and quality that a person is generally entitled to expect”, including within good time and with proper notice of “unavoidable” delays. A consumer also has the right to expect their property to be returned in at least as good a condition as before.

Where the service or repair is faulty and not up to standard, the consumer has the choice to either insist that the mistake be fixed or that they be refunded a reasonable part of the price paid (“reasonable” being linked to the extent of the failure).

THE RIGHT TO GOOD QUALITY PRODUCTS AND TO RETURN FAULTY GOODS

Consumers have the right to buy and receive goods that are good quality, in good working order and free of faults, which will last for a reasonable time, and are suitable for their intended purpose – UNLESS the consumer was told of a specific poor condition and knowing this still accepted the goods.

Where the goods do not meet the required standards, a consumer has the right to return the goods within SIX MONTHS of purchase and have them replaced, repaired or get a refund.

If the goods are repaired, and a defect appears within a further 3 months, the supplier must replace or refund. In other words, it cannot go for repairs twice.

WARNINGS OF RISK AND CLAIMS FOR INJURIES OR LOSS CAUSED BY UNSAFE OR DEFECTIVE GOODS

Suppliers are required to inform consumers where goods may pose a risk (as specified in the Act) including one of which a consumer may not be expected to be aware. Packagers of hazardous or unsafe goods must also provide notices including instructions for safe handling and use.

The Consumer Commission has to oversee this so as to reduce the risk of hazardous or defective goods and substances. This oversight role includes investigating and recalling products.

A consumer can claim damages from either the producer, the importer, the distributor or the retailer of a product where the consumer has suffered harm as a result of the supply of unsafe goods, product failure, defect, hazard or failure to give adequate warnings relating to the product. “Harm” includes death, injury, illness or loss of or damage to property. The Act also allows for the consumer to claim for indirect financial loss suffered, for example, loss of income as a result of the injury.