Banks will no doubt take notice of this ruling and start registering bonds over home loans more speedily.Two Standard Bank clients last week succeeded in appealing the bank’s attempt to recover a home loan by arguing prescription – that the debt had lapsed because of the passage of time.
In other words, if you default on a debt and three years pass, that debt is prescribed, provided you do not acknowledge the debt within that period. Should you admit the debt or the bank issues summons against you within the three-year period, the ‘prescription period’ starts running anew.‘No possibility under the sun R78 billion will be collected’, says Ramokgopa on municipal debtThe bank lodged a claim against the liquidated estate and received a dividend of R130 000.
The two appellants argued that their indebtedness had prescribed because they were served summons more than three years after Simcha defaulted, or alternatively, more than three years after the company was liquidated.The bank took the matter to court and won a summary judgment in 2016 with the finding that, in the particulars of claim, the bank “alluded to the fact that the loan amount was secured by a mortgage bond.
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BusinessTechSA - 🏆 24. / 61 Read more »