DEBT RE-ARRANGEMENT CANNOT AMEND INTEREST RATE
Nedbank Limited v Jones and Others (24343/2015)  ZAWCHC 139 (12 October 2016)
In a judgment with some twists, the Court confirmed that where over-indebted consumers are assisted by Magistrates’ Courts to enter into debt re-arrangement plans, this may not include an adaptation of the agreed interest rate. In this instance the Magistrate erroneously did just that, and lowered the instalment amount, resulting in a debt that could never be paid off. The judgment was void, but what was the impact of the fact that the bank’s application for rescission came five years after the Magistrate’s order?
DEBTOR IN DEFAULT: DELAY TACTICS WON’T WORK
De Villiers v Human and Another (236/2016)  ZAECGHC 85 (22 September 2016)
It is most infuriating for a lender to be met with a borrower’s insufficient defence when payment becomes due. A strong weapon in the hands of a creditor is to invoke the summary judgment procedure promptly after the debtor indicates his intention to defend the claim. Summary judgment is a unique procedure where a court may grant a final order against a debtor in a defended action without having to go to trial. The judgment here illustrates the workings of this mechanism.