Parow Motorhandelaars (Pty) Ltd v Parker (17638/2012)
Parow Motorhandelaars (Pty) Ltd v Parker (17638/2012) [2014] ZAWCHC 122 (18 August 2014)
The court found that the credit agreement was structured to disguise a substantial initiation fee as part of the capital loan, in direct contravention of the National Credit Act and its regulations. The fee far exceeded the statutory maximum and was not disclosed as required, undermining the Act’s objectives of consumer protection, transparency, and fairness. The contract’s formulation constituted fraud on the Act and materially frustrated its purposes. Severance was not appropriate, as it would result in a contract fundamentally different from that intended by the parties. The agreement was…
Source excerpt
- National Credit Act
- Initiation Fee
- Contract Illegality
- Severability
- Condictio Ob Turpem
- Consumer Protection