THE LAW forbidding creditors from collecting on prescribed debts which fall under the National Credit Act 34 of 2005 (NCA) is well-known, established, and adhered to—or so everyone would think. The aim of this law is to safeguard consumers against unfair and exploitative practices by creditors, and has been in effect for a number of years.
However, despite the legal requirements and the guaranteed protection they off-er consumers, the Ombudsman for Banking Services (OBS) is still receiving, investigating, and resolving complaints from bank customers relating to prescribed debts. In some cases, banks have been found guilty of engaging in this illegal practice.
Unfortunately, in many instances, the protection afforded by the law is beneficial only to consumers who…
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