The impact of the credit legislation on consumers
| Autor: | Thifulufhelwi Cedric Tshidada, Hlako Choma, Tshegofatso Kgarabjang |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2016 |
| Předmět: |
Credit Legislation and Insolvency Act
Economics and Econometrics National Credit Act Credit Agreement business.industry Strategy and Management 05 social sciences 050401 social sciences methods 050301 education Legislation Accounting Consumer Commerce 0504 sociology lcsh:Finance lcsh:HG1-9999 Credit Provider Business 0503 education Finance |
| Zdroj: | Risk Governance & Control: Financial Markets & Institutions, Vol 6, Iss 4, Special Issue, Pp 503-509 (2016) |
| ISSN: | 2077-4303 |
| Popis: | The purpose of this paper is to examine two South Africa legislations dealing with over indebtedness of a consumer. It is clear that in terms of the South African law, section 129 (1) and 130 (3) of the National Credit Act provide that a creditor provider who wishes to enforce a debt under a credit agreement must first issue a section 129 (1) (a) notice to the consumer (the purpose of the notice is to notify the consumer of his/her arrears). On the other hand, the South African National Credit Act encourages the consumers to fulfil the financial obligations for which they are responsible. The second legislation to be examined which serve or appear to serve same purpose as the National Credit Act is the Insolvency Act. It therefore, postulated that the compulsory sequestration of a consumer in terms of the Insolvency Act would stand as an alternative remedy for a credit provider before she/he can have recourse mechanisms, such as debt review that are focused on satisfaction of the consumer’s financial obligation , in terms of the provisions of the National Credit Act. The paper determines to what extend these measures comply with the constitutional consumer protection demands. The legislature had been pertinently cognizant of the Insolvency Act when it lately enacted the National Credit Act. This is much apparent from the express amendment of section 84 of the Insolvency Act to the extent set out in schedule 2 of the National Credit Act |
| Databáze: | OpenAIRE |
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