Debtfree Magazine Issue 11 of 2021

SUPREME COURT REVERSES
LEGAL FEE LIMIT RULING
It is not uncommon for a court case to be appealed. Especially
is this the case when a lot of money is at stake. This is what
happened after the Stellenbosch Law Clinic won a case
against Bayport (and many other credit providers) over the
limits set on fees to collect judgment debts.
In 2019 consumers were offered relief against run away
legal collection fees when the High Court ruled and gave
clarity regarding a part of the National Credit Act (NCA
Section 103(5)). This meant that some credit providers and
their collections arms would not be able to add as many
fees to consumer’s debt accounts as before.
The Supreme Court of Appeal has now ruled and reversed
the finding of the lower court. This means that the limits set
by NCA Section 103(5) are now not to be applied to legal
enforcement costs and interest on Judgments (but can be
applied to standard pre legal collections costs).
The Stellenbosch Law Clinic are now considering returning
the favour and taking the matter to the Constitutional Court
(which is the highest court in the country).