National Credit Act, 2005 (Act No. 34 of 2005)Chapter 4 : Consumer Credit PolicyPart D : Over-indebtedness and reckless credit79. Over-indebtedness |
| (1) | A consumer is over-indebted if the preponderance of available information at the time a determination is made indicates that the particular consumer is or will be unable to satisfy in a timely manner all the obligations under all the credit agreements to which the consumer is a party, having regard to that consumer’s— |
| (a) | financial means, prospects and obligations; and |
| (b) | probable propensity to satisfy in a timely manner all the obligations under all the credit agreements to which the consumer is a party, as indicated by the consumer’s history of debt repayment. |
| (2) | When a determination is to be made whether a consumer is over-indebted or not, the person making that determination must apply the criteria set out in subsection (1) as they exist at the time the determination is being made. |
| (3) | When making a determination in terms of this section, the value of— |
| (a) | any credit facility is the settlement value at that time under that credit facility; and |
| (b) | any credit guarantee is— |
| (i) | the settlement value of the credit agreement that it guarantees, if the guarantor has been called upon to honour that guarantee; or |
| (ii) | the settlement value of the credit agreement that it guarantees, discounted by a prescribed factor. |