South Africa Case Law

Potpale Investments (Pty) Ltd v Kotelo (2023/070442)

Potpale Investments (Pty) Ltd v Kotelo (2023/070442) [2025] ZAGPJHC 473 (16 May 2025)

Court

South Gauteng High Court, Johannesburg

Case number

2023/070442

Judge

Barnes

The defendant's defences were vague, contradictory, and lacked sufficient detail to constitute a bona fide defence to summary judgment. Even if the agreement were suspended or set aside for reckless credit, the plaintiff, as owner, would still be entitled to repossession of the vehicle. The defendant admitted to being in arrears and provided no credible or cognisable defence to the plaintiff's claim. Accordingly, summary judgment was granted for confirmation of termination, return of the vehicle, and attorney and client costs.

Source excerpt

• Summary Judgment
• Credit Agreement
• National Credit Act
• Repossession
• Reckless Credit
• Contractual Defences

Uys N O and Others v National Credit Regulator and Another (869/2023)

Uys N O and Others v National Credit Regulator and Another (869/2023) [2025] ZASCA 34; [2025] 3 All SA 71 (SCA) (1 April 2025)

Court

Supreme Court of Appeal

Case number

869/2023

Judges

Mokgohloa, Weiner, Kathree-Setiloane, Musi, Windell

The Supreme Court of Appeal found that the impugned transactions did not constitute credit agreements as defined by section 8(1)(b) read with section 8(4)(f) of the National Credit Act. The agreements were genuine sale and leaseback transactions, with the properties transferred to the Trust and the sellers retaining an option to repurchase. There was no evidence of a legal obligation to repay the purchase price, nor any disguised intention to simulate a loan agreement. The Regulator failed to provide confirmatory evidence or oral testimony to support its allegations of simulation. The Trust's…

Source excerpt

• National Credit Act
• Simulated Transactions
• Credit Agreements Definition
• Sale And Leaseback
• Reckless Credit
• Registration Of Credit Providers

ABSA Bank Limited v Goolam (2016/8629)

ABSA Bank Limited v Goolam (2016/8629) [2025] ZAGPJHC 62 (30 January 2025)

Court

South Gauteng High Court, Johannesburg

Case number

2016/8629

Judge

D Marais

The court held that the settlement agreement between ABSA Bank Limited and Shereen Goolam constituted a credit agreement as defined in section 8(4)(f) of the National Credit Act, since it deferred payment of an amount due and provided for interest. However, the reckless credit provisions of the NCA do not apply to such settlement agreements, as those provisions are intended for the initial granting of credit and not for consensual restructuring of existing debt, unless the settlement increases the consumer's obligations, which was not the case here. The applicant was required to comply with s…

Source excerpt

• National Credit Act
• Settlement Agreement Novation
• Reckless Credit
• Section 129 And 130 Nca
• Rule 46a Execution
• Costs Order Abuse Of Process

SA Taxi Impact Fund (RF) (Pty) Ltd v Jacobs (10003/2023)

SA Taxi Impact Fund (RF) (Pty) Ltd v Jacobs (10003/2023) [2024] ZAWCHC 278; [2025] 1 All SA 538 (WCC) (25 September 2024)

Court

Western Cape High Court, Cape Town

Case number

10003/2023

Judge

Gordon-Turner

The court found that the applicant lawfully terminated the credit agreement and debt review process after the respondent defaulted and failed to make required payments. The applicant participated in good faith in debt review negotiations, making multiple counter-proposals and offering extensions, but the respondent did not meet the terms. The respondent's claim of reckless credit was unsupported, as the applicant relied on the respondent's own financial representations and conducted an industry-standard assessment. The respondent failed to provide sufficient evidence of reckless credit or bon…

Source excerpt

• National Credit Act
• Summary Judgment
• Debt Review
• Reckless Credit
• Good Faith Negotiation

Scania Finance Southern Africa (Pty) Ltd v Hulk Haulers (Pty) Limited (D8414/2020)

Scania Finance Southern Africa (Pty) Ltd v Hulk Haulers (Pty) Limited (D8414/2020) [2024] ZAKZDHC 58 (30 August 2024)

Court

Kwazulu-Natal High Court, Durban

Case number

D8414/2020

Judge

Moodley

The High Court confirmed a provisional liquidation order and placed the respondent under final liquidation, finding the debt liquid and the dispute not bona fide.

• Final Liquidation
• Liquidated Debt
• Bona Fide Dispute
• Statutory Demand
• Credit Agreements
• Reckless Credit

Masithela v Firstrand Bank Limited (19320/2022)

Masithela v Firstrand Bank Limited (19320/2022) [2024] ZAGPJHC 787 (15 August 2024)

Court

South Gauteng High Court, Johannesburg

Case number

19320/2022

Judge

TP Mudau

The High Court dismissed a late rescission application, finding no proper condonation, wilful default, or bona fide defence, and held the repayment arrangement was not credit under the NCA.

• Rescission Of Judgment
• Condonation
• Reckless Credit
• National Credit Act
• Wilful Default
• Rescission-of-judgment

National Credit Regulator v 5 Star Cash Loans (Pty) Ltd (NCT/320469/2024/140(1))

National Credit Regulator v 5 Star Cash Loans (Pty) Ltd (NCT/320469/2024/140(1)) [2024] ZANCT 22 (18 July 2024)

Court

National Consumer Tribunal

Case number

NCT/320469/2024/140(1)

Judges

S Hockey, N Maseti, CJ Ntsoane

The Tribunal found multiple National Credit Act breaches by a credit provider, declared the conduct prohibited, set aside reckless agreements, and imposed a R100,000 fine.

• National Credit Act
• Reckless Credit
• Affordability Assessment
• Prohibited Instruments
• Administrative Fine
• National-credit-act

Standard Bank of South Africa Ltd v Koen (25872/2018)

Standard Bank of South Africa Ltd v Koen (25872/2018) [2024] ZAGPPHC 698 (17 July 2024)

Court

North Gauteng High Court, Pretoria

Case number

25872/2018

Judge

JA Kok

The court found that the defendant failed to discharge the onus of proving that the credit was recklessly granted. The plaintiff's witness, although not employed at the time of the original transaction, was entitled to rely on the bank's electronic records and system notes, which reflected that an affordability assessment was conducted based on information received from the bond originator. The defendant did not call any witnesses, such as his father or the estate agent, to support his claim that his expenses were not provided or assessed. The court accepted the plaintiff's evidence that the…

Source excerpt

• National Credit Act
• Reckless Credit
• Affordability Assessment
• Burden Of Proof
• Electronic Evidence

National Credit Regulator v Commshey 52 CC t/a HW Financial Services (NCT/321444/2024/57(1))

National Credit Regulator v Commshey 52 CC t/a HW Financial Services (NCT/321444/2024/57(1)) [2024] ZANCT 21 (6 July 2024)

Court

National Consumer Tribunal

Case number

NCT/321444/2024/57(1)

Judges

MC Peenze, Z Ntuli, S Hockey

The Tribunal found repeated National Credit Act contraventions by a credit provider, declared the agreements reckless, imposed a R250,000 fine, and refused deregistration.

• Reckless Credit
• Affordability Assessment
• Administrative Penalty
• Prohibited Conduct
• Credit Provider Registration
• Consumer Protection

Assetline South Africa (Pty) Ltd v MLM Associates Inc and Another (A2023/108765)

Assetline South Africa (Pty) Ltd v MLM Associates Inc and Another (A2023/108765) [2024] ZAGPJHC 547 (11 June 2024)

Court

South Gauteng High Court, Johannesburg

Case number

A2023/108765

Judges

Wilson, Mudau, Malindi

The High Court held the National Credit Act did not apply to a juristic-person loan exceeding R250,000, and allowed Assetline’s appeal.

• National Credit Act
• Reckless Credit
• Suretyship
• Special Executability
• In Duplum Rule
• Contractual Interest