DCCP5112: Debt Collection & Civil Procedure Study Guide

Vocabulary practice flashcards covering South African debt recovery, prescription, National Credit Act requirements, summons, service, and civil court procedures for DCCP5112.

Prescription

The legal process by which a debt may become unenforceable or extinguished after the period fixed by law has run, subject to the Prescription Act and exceptions.

Prescription Act 68 of 1969 (Section 14)

The statutory provision providing that an express or tacit acknowledgement of liability interrupts prescription, causing it to run afresh from the date of interruption.

Prescription Act 68 of 1969 (Section 15)

The statutory provision establishing that service of process claiming payment interrupts prescription, provided the creditor successfully prosecutes the claim to final judgment.

Letter of Demand

A formal written request demanding that a debtor pay an identified debt; it clarifies the claim, prompts payment or settlement, and creates an evidentiary record before summons is issued.

Section 129 Notice (National Credit Act)

A mandatory statutory pre-enforcement notice that informs a defaulting consumer of their default and outlines options to resolve disputes or address arrears before legal action is instituted.

Section 130 (National Credit Act)

The statutory section setting specific requirements and waiting periods following default and notice delivery that must be satisfied before approaching a court to enforce a credit agreement.

Suretyship

A contract wherein a party (the surety) agrees to be held liable for the debt or obligation of another person, subject to the terms of the agreement and governing law.

General Law Amendment Act 50 of 1956 (Section 6)

The statutory provision mandating that a valid suretyship contract must be embodied in a written document, signed by or on behalf of the surety, with an identifiable guaranteed obligation.

Council for Debt Collectors

The regulatory body established under the Debt Collectors Act 114 of 1998 responsible for the registration and oversight of debt collectors within its scope.

Summons

A formal court document that initiates a civil action, notifying the defendant of a claim against them, the relief sought, and the prescribed period and procedure to defend.

Return of Service

A formal document prepared by the sheriff recording how, when, where, and on whom court process was served, serving as crucial evidence of valid service.

Service at a Residence

A method under the Magistrates' Courts Rules where process is served at a defendant's residence by delivering a copy to a person apparently at least 16 years old and apparently residing there.

Default Judgment

A court order granted in favour of the plaintiff when the defendant fails to take a required procedural step—such as delivering a notice of intention to defend—within the prescribed time limit.

Summary Judgment

A distinct civil procedure available for qualifying claims where the plaintiff requests judgment without a full trial because the defendant's defence fails to meet the legal threshold.

Rescission of Judgment (Rule 49)

The procedure under the Magistrates' Courts Rules to set aside or vary a judgment, ordinarily applied for within 20 days of acquiring knowledge of a default judgment.

Bona Fide Defence

A genuine, legally viable defence supported by material facts rather than a bare denial, required in a supporting affidavit when applying for rescission of a default judgment.

Territorial Jurisdiction

The legal power and authority of a specific Magistrates' Court to adjudicate a matter based on a recognised connection to the defendant or the cause of action.

D-C-S-R-E

The memory hook representing the stages of the debt-recovery journey: Demand, Check, Summons, Response, and Enforce.

D-A-S

The memory hook outlining the essential prescription milestones: Due date, Acknowledgement, and Summons/process served.

W-S-O

The memory hook summarising the formal validity requirements for a contract of suretyship: Written, Signed, and Obligation identified.