Credit Law

Reckless Lending: You Could Lose Everything

KVV Inc Attorneys

Published on: 18/05/2026

Explains risks under South Africa’s National Credit Act: lenders must register where required and perform proper affordability checks. A court found a R430k loan reckless, voiding the agreement due to flawed credit assessment.

reckless lending South AfricaNational Credit Act credit provider rulesaffordability assessment NCAover-indebtedness court rulingcredit agreement declared void

Lending to a Friend or Relative – When Must You Register as a Credit Provider?

KVV Inc Attorneys

Published on: 04/03/2025

Lending money to friends or family can be risky. While it seems natural, if the loan isn't "at arm's length" (a formal business arrangement) it may not fall under the National Credit Act (NCA). A recent case highlighted this, where a R15m informal loan between friends was deemed outside the NCA, saving the lender. However, relying on informal agreements is dangerous.

KVVProperty LawConveyancing informal loanslending money to friendsNCAloan agreement enforceabilityunregistered credit providerunlawful credit agreementdebt recoverySCA

The Trouble with Family Loans: A R540,000 Lesson

KVV Inc Attorneys

Published on: 04/03/2025

Family loans can be risky. A recent court case highlights the importance of written contracts, even with family. In this instance, parents lost R540,000 because they couldn't prove a loan agreement with their daughter. Without a contract specifying terms, repayment, and intent, family ties offer no protection.

KVVProperty LawConveyancing Family loansloan agreementwritten contractNCAinheritancedivorcedebt repayment