As a debtor, you're better protected than ever since recent landmark rulings that have put a stop to practices that could add to your distress when you default on your repayments. One stops creditors from taking legal action in an expensive high court instead of a magistrate's court and the other protects you from excessive charges, especially legal fees, when you default. Late last year, acting judge Bryan Hack handed down a declaratory order in the Western Cape High Court, finding that "collection costs", as defined by the National Credit Act (NCA), include all legal fees incurred by a credit provider before, during and after litigation against you, as the debtor. Furthermore, these costs can't be passed on to you unless they have been checked by the court or agreed to by you. Hack also provided legal clarity on statutory in duplum(a Latin phrase meaning "double the amount"). In common law, the in duplum rule provides that interest on a debt will stop running once arrears inte...
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