Tuesday, February 3, 2015

Collett v Firstrand Bank Limited - Termination of Debt Review

In this case the Appeal Court considered the question whether or not a credit provider can terminate the debt review process and thus exclude his debt from debt counselling after a court application has been issued. The court found that after the 60 days have lapsed a credit provider can indeed terminate the debt review process.

In practice however very few credit providers proceed to terminate if a consumer is making regular debt review payments. The act has also been amended to ensure that a credit provider cannot terminate once a court application has been filed. This amendment has however not come into effect as of yet.

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