FINANCIAL FORUM
Q&A: Is there a cap on the cost of default?
How are the fees and charges regulated in the recovery of arrear levies?
Q: I received a summons for the payment of R17,000 to my body corporate. In October 2018 my insurance paid R5,150 for my arrear levies. My bill shows I was charged interest of R5,247, legal costs of R4,343 and assessment costs of R1,345. When I contended that the collection costs cannot be more than double the capital amount outstanding, I was told this applies to agreements under the National Credit Act (NCA), and only the interest rate provision is applicable to my bill. Is this correct? Can I open a case against the debt collectors for violations of the act? — Ncedisa Gongxeka
A: Avitha Nofal, a senior legal adviser at the office of the credit ombudsman, responds. ..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.