Non-compliance with time periods - should the debt review procedure lapse once a reasonable time has expired?

Abstract

In Pelzer the respondent-credit provider contended that the debt review procedure had lapsed because of non-compliance with prescribed time periods in terms of the regulations promulgated in terms of the NCA. In this regard it should be noted that the legislator has not provided any sanction for failure to comply with these time periods (cf Roestoff “Enforcement of a credit agreement where the consumer has applied for debt review in terms of the National Credit Act 34 of 2005” 2009 Obiter 430 432). The question according to the court (Goodey AJ) was therefore whether debt review proceedings can carry on indefinitely or whether it should lapse because of non-compliance with the prescribed time periods once a reasonable time has expired (para 1.2).