Standard Bank court ruling upheld

Comment on this story
IOL standardbank INDEPENDENT NEWSPAPERS The ConCourt has upheld a ruling in favour of Standard Bank on its notification to a consumer to enforce a credit agreement. File picture: Timothy Bernard

Johannesburg -

The Constitutional Court on Thursday upheld a ruling in favour of Standard Bank on its notification to a consumer to enforce a credit agreement.

“Standard Bank has done all that was required of it by the (National Credit) Act,” it said in its ruling.

Moshomo Kubyana was challenging a high court judgment that he settle an amount owed to Standard Bank for a vehicle, and that it be repossessed.

He claimed he did not receive notices by post that he was in arrears.

In 2007, Kubyana and Standard Bank entered into an agreement for the purchase of a car.

In 2010, Standard Bank sent a notice to Kubyana indicating he was in default of his obligations under the agreement and that it intended approaching a court for debt enforcement.

The notice was sent by registered post. Although two written requests were sent to his home to collect documentation from the post office, Kubyana did not do so.

Five weeks later, the notice was returned to Standard Bank uncollected.

The bank approached the High Court in Pretoria and an order was granted in its favour. The court found that delivery of a notice by registered mail was sufficient, and that Standard Bank had discharged its statutory obligations.

The court reasoned that if Parliament had intended the notice to be personally served, the act would have provided for this.

Kubyana argued in the Constitutional Court that when a notice was returned to the creditor undelivered the creditor had to take further steps before instituting legal proceedings.

Standard Bank argued that delivery of a notice to a nominated address through registered mail was sufficient. - Sapa

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines