Vehicle Repossession: When a Court May Refuse a Creditor’s Application

Vehicle repossession is not simply an administrative step after default. A credit provider must comply with the National Credit Act and act reasonably in the circumstances.

The issue

The Western Cape High Court considered a case where a credit provider sought judgment to repossess a motor vehicle after the borrower defaulted under a credit agreement.

The credit provider had issued a section 129 notice, giving the borrower an opportunity to settle the arrears. The borrower responded and expressed willingness to make payment arrangements.

The problem

The credit provider insisted on at least 50% of the arrears upfront and the balance within three months. The borrower said he could not meet those terms because of financial distress.

Key takeaway

Where a consumer engages with a section 129 notice and proposes payment arrangements, the court may scrutinise the credit provider’s response before granting repossession.