This dissertation considers the possible impact certain requirements of the National
Credit Act 34 of 2005 (hereafter NCA) has on reckless credit lending by credit providers.
The dissertation will identify problem areas created by the provisions of the NCA and
the impact thereof on security or partial performances linked to the credit agreement.
“Reckless credit lending” used to be a new terminology introduced in the credit market
to increase consumer spending, but it is currently a well-known practice in the credit
industry. The NCA aims at protecting consumers, especially against present everincreasing
reckless-credit practices. However, certain provisions relating to reckless
credit are mostly ambiguous and vague.
The NCA is silent on the development and implementation of guidelines and policies
relating to the prevention of reckless credit and the consequences of such an order on
security and/or performances (whether there was partial or full performance). This study
will discuss the prevention and consequence of reckless credit by referring to the NCA,
articles written by various authors, as well as court decisions where related concerns
were addresses by the judges concerned with this issue.
Although the provisions stipulated in the amended NCA improve the position of the
consumer in the credit market, the legislature should have drafted certain applicable
provisions with more care and detail. A more detailed draft could circumvent vagueness
in particular areas of concern. / Private Law / LL. M.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:uir.unisa.ac.za:10500/21155 |
| Date | 23 August 2016 |
| Creators | Mulder, Ingrid |
| Contributors | Eiselen, Sieg |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Dissertation |
| Format | 1 online resource (179 leaves) : color illustrations |
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