Debtfree DIGI March 2016 | Page 13

NEWS CONTINUED which Cape Town’s courts felt were not valid for a variety of reasons. The court case raised big (constitutional) issues in regard to the use and abuse of the EAO system. The Con Court case touches on a number of important and far reaching common practices in regard to EAOs - most of which are very bad and unfair to consumers. Often times the way things have been done in the past prevented consumers from having their day in court to protect themselves from abuse. Some even claim that credit provider’s collection agents regularly engage in ‘forum shopping’ at far away courts in order to get their EAOs rubber stamped and prevent consumers from every changing these deductions. An EAO currently has to be changed at the court it was granted in. If that court is far from the consumer’s home town this makes it expensive and extremely difficult to get the EAO changed or thrown out. At High Court things went the consumers way and as a result many EAOs in the Western Cape have not been enforced since that ruling. If things once again go the consumers way it would have a massive impact on how many legal collections firms and credit providers go about recovering funds from consumers across the entire country. For daily debt counselling news in 3 minutes or less visit www.debtfreedigi.co.za MELIORLEAF WON’T LOAD YOUR PREMIUMS OR REPUDIATE A LEGITIMATE CLAIM Specialist insurance for people in debt review. Ask your debt counsellor. CALL US NOW 0861 635 467 www.meliorleaf.co.za