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.
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