DEFAULT & A DECLARATORY ORDER A new court case might have some significant ramifications for consumers, credit providers and Debt Counsellors. A Debt Counsellor is trying to get clarity on the application of NCA Section 103(5) (and common law Induplum). In particular, the term ‘Default’ that is used in the law in various places. The challenge is that certain credit providers have for years insisted that any ‘default’ on a consumer’s account is cured or resolved (goes away) when a debt review debt restructuring court order is granted. They then say that as long as the consumer sticks to the debt review repayment plan they are not in a state of default and so the limits of NCA Section 103(5) do not apply. Not everyone agrees (both among Debt Counsellors and some credit providers). The point of the court case is to try get the High Court to give: 1. Clarification of the definition and applicability of the term ‘default’; 2. Confirmation that an application for debt review order does or does not rectify the default; 3. Based on that ensure that fees and charges do not exceed the outstanding balance while the consumer remains in default.
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.