The National Credit Act 34 of 2005 (“the NCA”) has a mechanism whereby a defaulting debtor can automatically (and even without the knowledge of the creditor or the debtor himself) “reinstate” a credit agreement. The mechanism operates subject to the proviso that the credit provider has not yet cancelled the agreement.
The effect of the “reinstatement” procedure is to “normalize” a credit agreement that was in default (due to debtor’s failure to pay), to the extent that a default judgement that was obtained at ta time that a debtor was in breach, is is no longer of use to the credit provider.
STBB_Article-A-home-owners-automatic-mechanism