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National Credit Act, 2005 (Act No. 34 of 2005)

Chapter 8 : Enforcement of Act

Part C : Miscellaneous matters

164. Civil actions and jurisdiction


(1) A credit agreement or a provision of a credit agreement that, in terms of this Act, is prohibited or may be declared unlawful, is not void unless a court or the Tribunal, as the case may be, declares that agreement or provision to be unlawful.

[Section 164(1) substituted by section 27 of Notice No. 1081, GG 42649, dated 19 August 2019]


(2) In any action in a civil court, other than a High Court, if a person raises an issue concerning this Act or a credit agreement which the Tribunal
(a) has previously considered and determined that court—
(i) must not consider the merits of that issue; and
(ii) must apply the determination of the Tribunal with respect to the issue; or
(b) has not previously determined, that court may—
(i) consider the merits of that issue, or
(ii) refer the matter to the Tribunal for consideration and determination.


(3) A person who has suffered loss or damage as a result of prohibited conduct or dereliction of required conduct—
(a) may not commence an action in a civil court for the assessment of the amount or awarding of damages if that person has consented to an award of damages in a consent order; or
(b) if entitled to commence an action referred to in paragraph (a), when instituting proceedings, must file with the registrar or clerk of the court a notice from the Chairperson of the Tribunal in the prescribed form—
(i) certifying that the conduct constituting the basis for the action has been found to be a prohibited or required conduct in terms of this Act;
(ii) stating the date of the Tribunal’s finding; and
(iii) setting out the relevant section of this Act in terms of which the Tribunal made its finding.


(4) A certificate referred to in subsection (3)(b) is conclusive proof of its contents, and is binding on a civil court.


(5) An appeal or application for review against an order made by the Tribunal in terms of section 148 suspends any right to commence an action in a civil court with respect to the same matter.


(6) A person’s right to damages arising out of any prohibited or required conduct comes into existence –
(a) on the date that the Tribunal makes a determination in respect of a matter that affects that person; or
(b) in the case of an appeal, on the date that the appeal process in respect of that matter is concluded.


(7) For the purposes of section 2A(2)(a) of the Prescribed Rate of Interest Act, 1975 (Act No. 55 of 1975), interest on a debt in relation to a claim for damages in terms of this Act will commence on the date of issue of the certificate referred to in subsection (3)(b).