A recent court case out of the Eastern Cape has caught the
attention of the Debt Counselling Community. In the case
Nedbank asked the court to review a debt restructuring order
which had happened without them attending and where the
interest rate was changed without their consent. The PE High
Court overturned the debt restructuring court order and issued
2 interesting declaratory judgments.
SOME BACKGROUND
In 2011 Mr Norris took an unsecured personal loan in the amount of R120 000 with Nedbank.
Nedbank checked that he could afford the loan and issued it to him. The total repayment amount
would be a whopping R220 000 over the 60 months of the loan. Monthly Mr Norris was to repay
R3674.49 at 17.5% interest. Not to be forgotten was the Credit Life insurance of R529.80 on the
amount each month (+- R 31 000 over the 60 months).
Within two years Mr Norris had a change of circumstances and due to increased pressure to
service all debt approached a Debt Counsellor in PE. (Sonja Volschenk of Madiba Bay Debt
counsellors 041 379 2621 info@madibadc.co.za)
At this point Mr Norris still owed R105 612. 15 on this particular loan (figure probably taken from
the Nedbank CoB) and don’t forget those monthly insurance costs.
Whereas Nedbank wanted R 3674.49 monthly for their loan now the Debt Counsellor determined
that Mr Norris had only R1600 to pay all his debt each month (incl amounts to among others
ABSA , Wonga, Ellerines, Edgars, Bridge loans, African bank).
Proposals were sent to all creditors (which were all for very low amounts over a very long time).
The proposals were then turned into a court application and the matter was set down for a short
while later in Jan 2014.
Nedbank put on record and submitted their intention to oppose the applicat [ۈ\