South Africa Case Law

Malapela and Another v Zondo and Another (2023/065428)

Malapela and Another v Zondo and Another (2023/065428) [2025] ZAGPJHC 586 (11 June 2025)

Court

South Gauteng High Court, Johannesburg

Case number

2023/065428

Judge

J D'Oliveira

The court found that the loan agreement forming the basis of the default judgment was void ab initio because the Respondents were not registered credit providers as required by the National Credit Act. The agreement was not an incidental credit agreement, as it provided for interest from a date prior to its conclusion and thus fell within the definition of a credit agreement under section 8(4)(f) of the Act. There was no allegation or evidence that the Respondents were registered credit providers, and the loan originated from personal assistance rather than commercial lending. Consequently, t…

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• Rescission Of Judgment
• Credit Agreement Regulation
• Unlawful Credit Agreement
• Default Judgment
• Upliftment Of Bar

ABSA Bank Limited v Modingwana (2023/126064)

ABSA Bank Limited v Modingwana (2023/126064) [2025] ZAGPPHC 460 (9 May 2025)

Court

North Gauteng High Court, Pretoria

Case number

2023/126064

Judge

Myburgh

The High Court granted ABSA summary judgment for return of a financed vehicle, rejecting the defendant’s claim that a mechanical breakdown warranty voided the instalment sale agreement.

• National Credit Act
• Summary Judgment
• Unlawful Credit Agreement
• Mechanical Breakdown Warranty
• Summary-judgment
• National-credit-act

Blacher v Josephson (A15/22)

Blacher v Josephson (A15/22) [2023] ZAWCHC 27; 2023 (3) SA 555 (WCC) (14 February 2023)

Court

Western Cape High Court, Cape Town

Case number

A15/22

Judges

Sher, Le Grange, Gamble

The court held that the arbitral award was based on a compromise agreement (third AOD) which itself derived from earlier unlawful credit agreements. The respondent was not registered as a credit provider as required by the National Credit Act, rendering the original agreements unlawful and invalid. The compromise did not transform the unlawful nature of the underlying agreements into something new and valid; it merely attempted to settle the contractual claims arising from those agreements. The award did not create a new, independent cause of action but rather reinforced the original, unlawfu…

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• National Credit Act
• Unlawful Credit Agreement
• Arbitration Award Enforcement
• Compromise Agreement
• Public Policy
• Registration Of Credit Provider

National Credit Regulator v Engelbrecht (NCT/243378/2022/140(1))

National Credit Regulator v Engelbrecht (NCT/243378/2022/140(1)) [2023] ZANCT 12 (1 February 2023)

Court

National Consumer Tribunal

Case number

NCT/243378/2022/140(1)

Judges

MC Peenze, S Mbhele, Z Ntuli

The Tribunal found, on the uncontested evidence, that the Respondent repeatedly contravened the National Credit Act and its Regulations by operating as an unregistered credit provider, failing to conduct proper affordability assessments, charging excessive interest, retaining prohibited consumer instruments, and including unlawful provisions in credit agreements. These actions constituted prohibited conduct under the Act. The Tribunal accepted the Applicant's submissions and evidence, noting the Respondent's absence and lack of defence. The seriousness, duration, and extent of the contraventi…

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• National Credit Act
• Reckless Lending
• Affordability Assessment
• Unlawful Credit Agreement
• Administrative Fine
• Consumer Protection

Engelbrecht NO and Others v Du Toit (2723/2015)

Engelbrecht NO and Others v Du Toit (2723/2015) [2020] ZAWCHC 119 (19 October 2020)

Court

Western Cape High Court, Cape Town

Case number

2723/2015

Judge

A.G. Binns-Ward

The court found that the loan agreements between Smit and the defendant were void under the National Credit Act, as the defendant was not registered as a credit provider when required. Consequently, the interest payments made under these agreements constituted dispositions without value and were set aside under section 26 of the Insolvency Act. The plaintiffs were entitled to recover these amounts. Regarding the capital repayments, the court held that although Smit was hopelessly insolvent and appreciated that his scheme would inevitably collapse, the dominant intention behind the payments wa…

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• Insolvency Act Section 26
• Insolvency Act Section 30
• National Credit Act
• Unlawful Credit Agreement
• Disposition Without Value
• Ponzi Scheme Liability

Fourie v Geyer (MKP27/2018)

Fourie v Geyer (MKP27/2018) [2019] ZANWHC 42; 2020 (6) SA 569 (NWM) (22 August 2019)

Court

North West High Court, Mafikeng

Case number

MKP27/2018

Judge

Petersen

The High Court held that an acknowledgment of debt fell under the NCA, required credit provider registration, and was unlawful for non-compliance.

• National Credit Act
• Credit Provider Registration
• Acknowledgment Of Debt
• Unlawful Credit Agreement
• National-credit-act
• Credit-provider-registration

Du Bruyn NO and Others v Karsten (929/2017)

Du Bruyn NO and Others v Karsten (929/2017) [2018] ZASCA 143; 2019 (1) SA 403 (SCA) (28 September 2018)

Court

Supreme Court of Appeal

Case number

929/2017

Judges

Shongwe, Makgoka, Schippers, Mokgohloa, Nicholls

The Supreme Court of Appeal held that the National Credit Act requires registration as a credit provider for any credit agreement exceeding the statutory threshold, regardless of whether the transaction is a once-off or whether the provider is a regular participant in the credit industry. The agreements of sale between the parties were arms-length transactions and thus fell within the ambit of the Act. The respondent was not registered as a credit provider at the time the agreements were concluded, rendering the agreements unlawful and void. The court rejected the interpretation in Friend v S…

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• National Credit Act
• Credit Provider Registration
• Unlawful Credit Agreement
• Statutory Interpretation

National Credit Regulator v Malinga t/a MJ Cash Loans (Pty) Ltd (NCT/91476/2017/57(1)NCA)

National Credit Regulator v Malinga t/a MJ Cash Loans (Pty) Ltd (NCT/91476/2017/57(1)NCA) [2018] ZANCT 2 (2 January 2018)

Court

National Consumer Tribunal

Case number

NCT/91476/2017/57(1)NCA

Judges

D Terblanche, N Maseti, K Moodaliyar

The Tribunal found that the Respondent repeatedly contravened the National Credit Act by failing to conduct affordability assessments, failing to keep proper records, not providing pre-agreement disclosures, and requiring consumers to sign enforcement documents at the time of entering into credit agreements. The Tribunal held that these contraventions occurred both before and after the Respondent's registration as a credit provider, and that the Respondent could not escape liability under the Act due to his non-registered status. The Tribunal accepted the Applicant's evidence, including the i…

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• Reckless Credit
• Affordability Assessment
• Unlawful Credit Agreement
• Administrative Penalty
• Consumer Protection
• Default Judgment

La Mer Jeffreys Akkommodasie Bk v Flashcor 182 CC and Another (1683/2015)

La Mer Jeffreys Akkommodasie Bk v Flashcor 182 CC and Another (1683/2015) [2015] ZAECPEHC 57 (8 September 2015)

Court

Eastern Cape High Court, Port Elizabeth

Case number

1683/2015

Judge

Chetty

The court found that the agreement 'MK1' and the mortgage bond are indivisible and not distinct. The mortgage bond is accessory to the principal obligation, which is the payment of the purchase price under the agreement. The substance of the transaction, not its label, determines its legal character. 'MK1' constitutes a credit agreement under section 8 of the National Credit Act. Since the applicant was not a registered credit provider at the time of conclusion, section 89(2)(d) renders the agreement unlawful. The respondent's persistent default and the nature of the transaction justify the c…

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• National Credit Act
• Unlawful Credit Agreement
• Mortgage Bond
• Deed Of Transfer
• Just And Equitable Relief

Van Heerden v Nolte (19428/11)

Van Heerden v Nolte (19428/11) [2014] ZAGPPHC 1069 (28 January 2014)

Court

North Gauteng High Court, Pretoria

Case number

19428/11

Judge

Murphy

The court held that the plaintiff was obliged to register as a credit provider under the National Credit Act before extending credit where the aggregate principal debt exceeded R500 000. The plain language of section 40(1)(b) requires registration based on the total principal debt, regardless of whether the credit agreements are once-off or part of regular business. The Constitutional Court's decision in Opperman confirmed that the registration requirement applies even to single or infrequent transactions exceeding the threshold. Because the plaintiff failed to allege registration as a credit…

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• National Credit Act
• Credit Provider Registration
• Exception To Particulars Of Claim
• Unlawful Credit Agreement
• Unjustified Enrichment