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Filter: Debt
Suretyship vs Guarantee. What’s the difference?

02 May 2024

In this article, we look at two primary forms of security commonly found in financial transactions, namely suretyship agreements and... guarantees, and explain the difference between these two forms of security.

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What legal costs can a creditor charge a debtor to recover outstanding debt?

08 February 2022,  Marvin Odendaal

When times are tough, you may not get around to paying all your bills. But be warned, if neglected for... too long, it will inevitably lead to letters of demand for payment along with interest, charges and legal fees. As your outstanding obligations grow, you may wonder whether all these costs are allowed? Lets unpack what the law says.

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Article
No more excuses... we know you got that letter of demand

01 April 2021

As always, technology has ensured that there is never a dull moment.With the new and exciting development regarding registered letters... of demand being sent by registered email, consumers can no longer use the excuse that they did not receive their letter of demand.In a ground-breaking judgement, the High Court in Pretoria has very recently accepted the digitally registered delivery of a Section 129 final letter of demand for payment as the basis for granting a default judgment. In the past, consumers received these notices through registered post, with many claiming never to have received it. However this method of correspondence can now be replaced by a letter of demand that's sent and received digitally.As we all know, a letter of demand through registered e-mail or registered SMS is much more difficult to ignore, as it is sent directly to  our cellphone number or e-mail address. This means that it can reach us wherever we are, without us ever having to visit the post office. As the plaintiff argued in this recent case, the digital sending and receipt of a letter demand allows for consumers to get the information that they need to make payment arrangements with the creditor, much quicker - which in turn avoids legal costs and negative credit ratings.In addition, the technology of today allows for an instant electronic certificate and detailed audit report to be issued as evidence that the relevant communication had been sent and delivered by SMS or e-mail – providing exactly the same legal status as traditional registered post.It can even go further to actually show the sender that the recipient actually read the notice. A consumer can therefore not use the excuse anymore that they never received the notice, which will ensure that there are no more unnecessary delays in litigation.

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Covid Advisory: Credit insurance and debt relief

30 April 2020

Did you know that if credit insurance has been taken out on your debt, you may be eligible for coverage... on your payment obligations?

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Article
Covid Advisory: Government financial assistance options and your business

09 April 2020

Did you know that various debt relief schemes have been established by government in order to support businesses as a... result of the COVID-19 pandemic?

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Article
Can a bank transfer funds from one account to another without your permission?

11 November 2019,  Dr Candice Reynders

I have two accounts with the same bank. I am in arrears on my home loan payments but will be... receiving money into my savings account. It’s not my money, but money from my sister that I must use to help arrange for her wedding and expenses. I’m just worried that the bank will see the money and then take it to settle my arrears on my home loan. Can they do this?

3275
Article
Is it really farewell to that pesky salary attachment order?

07 October 2016

I have read a recent article that says that due to a recent court judgement, salary attachment orders are no... longer allowed. Is this correct and does that mean that the order against my salary is no longer valid?

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Article
Beware of the dangers of prescription

07 July 2016

I lent money to a business partner nearly 3 years ago when he was in a bit of financial trouble.... It wat not a massive amount, so I did not press him for the money. He recently won a big contract and I know things are going better with his business. When I asked him to pay back my loan, he refused and said that my claim had prescribed so there was nothing I could do and he was not going to pay it back. Surely this cannot be the case?

1947
Article
Credit agreements: You must get a notice before being sued

09 May 2016

I received a summons today from a credit provider that gave me a personal loan. I admit that I have... missed a payment or two on the loan, but did not think that I was that far behind. Surely they must at least have called me or written a letter asking me to pay up before running to court? It’s not even a big amount outstanding and now I may have to pay legal costs as well.

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Article
Am I really responsible for the municipal debts of a previous owner?

11 April 2016,  Natalie Steenkamp

I bought a house a few months ago. The municipality issued a rates clearance certificate to the seller and the... property was transferred in my name. When I recently queried a high water account with my municipality, the municipality responded by saying that there is still quite a large arrear debt against the property and that unless I pay they will take steps against me to collect and even sell my property if necessary. Surely this can’t be lawful?

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Article
How to change my ‘slow payer’ status

14 December 2015

I’m struggling to buy a car because I cannot get financing. I’ve had some financial problems which resulted in some... of my accounts falling behind. All my debt is paid off at this point but my credit record shows that I am a ‘slow payer’. Is there any way I can have this removed from my record?

2234
Article
Do I have any say over that garnishee order that’s deducted from my salary?

08 September 2015

I had some financial problems a little while ago, with the result that I owed money. One of my creditors... now has a garnishee order against my salary which my employer must deduct every month. I understand I must settle my debts, but the garnishee order leaves me with very little to take home to care for my family. Is there anything I can do?

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Article

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