Some recent events have highlighted the shortcomings of various systems regarding the money of debtors. Debtors are given debt based upon their ability to repay. Or would I rather say that is what is supposed to happen. Creditors should ask themselves a few questions before extending credit :
Is the state of the economy such that debtors will be able to sustain their repayments by keeping their jobs. Can the debtor pay? This is where afforability assessments are crucial. Will the debtor pay ? Checking of credit records and credit profile are applicable. If all else fails - will the creditor have security that can be monetized to recover some damages ?
It is recognized that a proper credit industry will have all these things in place. Unfortunately they do not - Not by a long shot.
So what happens in practise ?
Creditors do not have an ethical code of conduct. If you ever find one please send me a copy.
They will do anything to make money. Greed is the word . Need I quote more than the recent Lewis stores debacle, & the recent court case regarding the salary emoluments in the Cape ?
If you follow court cases regarding debt recovery you will find more often than not that banks issue required notices in terms of the NCA to the wrong addresses They always claim this as human error just like Lewis is now claiming human error in their wrong doings with clients. How do you spell "human error" - I spell it "malicious intent"
Just remember that most judgments about debt are by default. That means that the action was not defended. I am prepared to bet you a fine dollar that in most cases the notices and summonses were intentionally sent to the wrong address knowing full well that if the client does not know of the impending action they will not respond and will not defend.
Here is a scenario that proves what I am saying. I changed my chosen domicilium address in writing in October 2010. The bank acknowleges the change by stamping a copy of the letter at a branch. Standard operating procedure apparently requires of them not to do anything about this.
In 2014 they sent a 129 notice to a 10 year old address - not the previous one on record - actually not on record at all. They issue summons at the same address. They send the Sherrif to the same address and get a nulla bona ( no loose assets to attach) They get a judment and put the house up for auction.
They claim "Human error" I claim Malicious intent. ( a friend saw the sales advertisement in the newspaper and informed me )
This case proves beyond any reasonable doubt that there are systems and standard operating procedures in place with (especially banks) creditors to ensure that they get their judgments by hook or by crook with the emphasis on CROOK.
(P. The judgment was rescinded by the bank - costs for their account)
Is the state of the economy such that debtors will be able to sustain their repayments by keeping their jobs. Can the debtor pay? This is where afforability assessments are crucial. Will the debtor pay ? Checking of credit records and credit profile are applicable. If all else fails - will the creditor have security that can be monetized to recover some damages ?
It is recognized that a proper credit industry will have all these things in place. Unfortunately they do not - Not by a long shot.
So what happens in practise ?
Creditors do not have an ethical code of conduct. If you ever find one please send me a copy.
They will do anything to make money. Greed is the word . Need I quote more than the recent Lewis stores debacle, & the recent court case regarding the salary emoluments in the Cape ?
If you follow court cases regarding debt recovery you will find more often than not that banks issue required notices in terms of the NCA to the wrong addresses They always claim this as human error just like Lewis is now claiming human error in their wrong doings with clients. How do you spell "human error" - I spell it "malicious intent"
Just remember that most judgments about debt are by default. That means that the action was not defended. I am prepared to bet you a fine dollar that in most cases the notices and summonses were intentionally sent to the wrong address knowing full well that if the client does not know of the impending action they will not respond and will not defend.
Here is a scenario that proves what I am saying. I changed my chosen domicilium address in writing in October 2010. The bank acknowleges the change by stamping a copy of the letter at a branch. Standard operating procedure apparently requires of them not to do anything about this.
In 2014 they sent a 129 notice to a 10 year old address - not the previous one on record - actually not on record at all. They issue summons at the same address. They send the Sherrif to the same address and get a nulla bona ( no loose assets to attach) They get a judment and put the house up for auction.
They claim "Human error" I claim Malicious intent. ( a friend saw the sales advertisement in the newspaper and informed me )
This case proves beyond any reasonable doubt that there are systems and standard operating procedures in place with (especially banks) creditors to ensure that they get their judgments by hook or by crook with the emphasis on CROOK.
(P. The judgment was rescinded by the bank - costs for their account)
