THE APPELLATE DIVISION HAS SPOKEN -- SEQUESTRATION PROCEEDINGS DO NOT QUALIFY AS PROCEEDINGS TO ENFORCE A CREDIT AGREEMENT UNDER THE NATIONAL CREDIT ACT 34 OF 2005: NAIDOO v ABSA BANK 2010 4 SA 597 (SCA).

The article analyzes the facts and decision in Naidoo v ABSA Bank case in South Africa. It shows that the court in Naidoo correctly stated that section 130(3) does not extend the ambit of section 129. It points out that an over-indebted consumer may have the financial potential to overcome his or her debt if assisted by debt restructuring, a ruling of reckless credit, and the credit provider. It suggests not forcing a debtor to lose his or her assets and subjecting to the social stigma of being an insolvent.