Until the Supreme Court of Appeal explains how to deal with the interest paid on debt when consumers go under debt counselling, the process will not bring relief to the overindebted. Ken Bredenkamp, an attorney who specialises in the National Credit Act, says a declaratory order is needed to guide magistrates, debt counsellors, credit providers and consumers in the debt review process. Bredenkamp was responding to the most recent declaratory order to be handed down by the High Court in Cape Town - which conflicts with another explanatory order in the same jurisdiction. The orders are issued to clear up ambiguities around the rights and duties of parties, and only apply to the province in which they are issued. According to the declaratory order made by Judge Rosheni Allie in Cape Town last week, magistrates have the authority under the NCA to vary the interest rates that apply to your debts when you are in debt review - but only where there is agreement between consumers and their c...

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