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DEBT RECOVERY INTEREST AND COSTS CAPPED
Credit providers and consumers need to be aware of a recent High Court ruling that applies to any debt governed by the National Credit Act (the relevant sections of which came into effect on 1 June 2007).
In a nutshell, interest and costs stop accruing on such a debt as soon as it equals the capital (the "principal debt") outstanding at date of default. So the penalty for falling into arrear on a credit agreement will be having to pay up to double the debt. But never more than double.
Credit providers - tighten up your lending and recovery procedures! Debtors - check that you don't overpay!
Recent Articles for October 2009;
Source: www.dotnews.co.za
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