I obtained vehicle finance from FNB duri...

Asked by INFOPLAN on 03-07-2017 13:38:24
Question posted in the National Credit Act Law category relating to Eastern Cape
Question value: R 100.00

I obtained vehicle finance from FNB during 2008. As a result of sickness I lost my ability to generate an oncome after which FNB repossed the vehicle. The vehicle was auctioned and an amount was still owned to FNB. For a periof of 5 years I have had no further communication from FNB in this regard untill I found out that a default judgement was obtained without my knowledge.Due to the fact that the debt was classified as "prescribed" I enquired on what basis the judgement was allocated. Credit records showed that payments were made on the account to create the impression that the the debt has not been "prescribed" in order to obtain the judgement. I did not make the payments as it would jeapordise the "prescribed status". Please advise. Is FNB allowed to act in this way? Can I proceed with fraud charges and/or what alternative remedy do I have to clear my credit record. 

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Answer to the Question

Posted by Att. Patrick on 09-07-2017 17:09:37

Hi there,

I see that you haven't made a payment for the question, but I'm going to assist you a little. If you want to ask a follow-up question, please make the required payment.

If FNB took no steps to recover the debt for 3 years, then their claim has prescribed. 

BUT, if they have issued a summons and had it served on you before the 3 year time period expired (i.e. before the claim prescribed) then they have effectively interrupted prescription. 

It is not the date that the judgement is granted on which matters, it is the date on which the summons was served on you. 

If they have alleged that you made payments to pretend that the prescription period was extended, that is something that you need to fight them about in court by way of a rescission of judgment application. Only then will your credit record by cleared.

Att. Patrick

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