Constitutional Court considers whether unregistered credit providers can reclaim loans

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The Constitutional Court has been asked to consider the constitutionality of s 89(5)(c)(i) and s 89(5)(c)(ii) which provides that an unregistered credit provider looses the right to collect on loans. This right either gets 'cancelled' or is forfeited to the state.

It appears likely that if the court finds that the section is unconstitutional, the order will be suspended to allow parliament time to revisit the section.

See this article in the Business Day.

Also see Paul Esselaar's 'Section 89(5)(c): Breaking the NCA's big stick' in the May/June 2012 edition of the Consumer Law Review (Juta Law Publishing). You can access it from www.jutalaw.co.za under newsletters. Subscribe at Juta Law to receive a free edition of the newsletter every month. In order to subscribe you must create a profile and select the Consumer Law Review.