Xesi and Another v African Bank Ltd and Others (NCT/ 449/2010/138 (1)(P)) [2010] ZANCT 47 (21 April 2010)

Xesi and Another v African Bank Ltd and Others (NCT/ 449/2010/138 (1)(P)) [2010] ZANCT 47 (21 April 2010)

The Tribunal found that the applicants are experiencing financial difficulty and have engaged a debt counsellor who recommended a restructuring of their payment obligations. All credit providers and the applicants have consented to the debt rearrangement agreement. The Tribunal is satisfied that the requirements of section 86(7)(b) and section 138(1) of the National Credit Act have been met. Accordingly, the draft consent order, which restructures the payment instalments and extends the payment periods as set out in the agreement, is confirmed as an order of the Tribunal. The parties are warned that failure to comply with the order constitutes an offence under section 160(1) of the Act.

Citation
[2010] ZANCT 47
Parties
Applicant: Mzwakhe Xesi; Applicant: Andiswa Xesi; Respondent: African Bank Limited; Respondent: Consumer Friend; Respondent: Le Morgan Direct Marketing (Pty) Ltd; Respondent: Nedbank Limited; Respondent: Sanlam Personal Loans (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
21 April 2010
Case Number
NCT/ 449/2010/138 (1)(P)
Procedural Posture
Consent Order Application / Debt Rearrangement Order Under Section 86(7)(b) and Section 138(1) of the National Credit Act
Outcome
Consent order granted confirming the debt rearrangement agreement between the applicants and the respondents.
Judges
Tanya Woker
Legal Topics
Debt Restructuring, National Credit Act, Consent Order, Debt Review, Consumer Protection
Banking and Finance Civil Procedure Debt Restructuring National Credit Act Consent Order Debt Review Consumer Protection

Case Brief

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Parties

Mzwakhe Xesi

Applicant

Andiswa Xesi

Applicant

African Bank Limited

Respondent

Consumer Friend

Respondent

Le Morgan Direct Marketing (Pty) Ltd

Respondent

Nedbank Limited

Respondent

Sanlam Personal Loans (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Debt Rearrangement Order Under Section 86(7)(b) and Section 138(1) of the National Credit Act

Legal Issues

  1. 1 Whether the applicants are experiencing difficulty satisfying all obligations under their credit agreements in a timely manner.
  2. 2 Whether the parties have consented to a debt rearrangement facilitated by a debt counsellor under the National Credit Act.
  3. 3 Whether the Tribunal should confirm the draft consent order as an order of the Tribunal.

Ratio Decidendi

The Tribunal found that the applicants are experiencing financial difficulty and have engaged a debt counsellor who recommended a restructuring of their payment obligations. All credit providers and the applicants have consented to the debt rearrangement agreement. The Tribunal is satisfied that the requirements of section 86(7)(b) and section 138(1) of the National Credit Act have been met. Accordingly, the draft consent order, which restructures the payment instalments and extends the payment periods as set out in the agreement, is confirmed as an order of the Tribunal. The parties are warned that failure to comply with the order constitutes an offence under section 160(1) of the Act.

Court Disposition

Consent order granted confirming the debt rearrangement agreement between the applicants and the respondents.

Orders

  • The draft consent order as formulated and attached is confirmed as an order of the Tribunal.
  • The payment structures and instalment arrangements set out in Annexure 'B' are made an order of the Tribunal.