DEBT COLLECTING PROCESS

Transcription

1 DEBBUS1 JUNE 2013 EXAMINATION DATE: 4 JUNE 2013 TIME: 09H00 12H00 TOTAL: 100 MARKS DURATION: 3 HOURS PASS MARK: 40% (LP-005) DEBT COLLECTING PROCESS THIS EXAMINATION PAPER CONSISTS OF 4 SECTIONS: SECTION A: CONSISTS OF: (i) 10 MULTIPLE-CHOICE QUESTIONS (10 MARKS) (ii) 5 TRUE OR FALSE QUESTIONS (10 MARKS) (iii) 10 MATCHING-STATEMENT QUESTIONS (10 MARKS) SECTION B: SECTION C: SECTION D: CONSISTS OF 3 SHORT QUESTIONS CONSISTS OF 3 LONG ANSWER QUESTIONS CONSISTS OF 3 INTERPRETATIVE QUESTIONS ANSWER ANY ONE OF THE QUESTIONS (10 MARKS) (40 MARKS) (20 MARKS) INSTRUCTIONS: 1. Read the following instructions carefully before answering the paper, as failure to act upon them will result in a loss of marks. 2. Write your answers in your answer book, which is provided in the exam. 3. Ensure that your name and student number are clearly indicated on your answer book. 4. Write your answers in either blue or black ink in your answer book. 5. Read each question very carefully before you answer it and number your answers exactly as the questions are numbered. 6. Begin with the question for which you think you will get the best marks. 7. Note the mark allocations for each question give enough facts to earn the marks allocated. Don't waste time by giving more information than required. 8. You are welcome to use diagrams to illustrate your answers. 9. Please write neatly we cannot mark illegible handwriting. 10. Any student caught cheating will have his or her examination paper and notes confiscated. The College will take disciplinary measures to protect the integrity of these examinations. 11. If there is something wrong with or missing from your exam paper or your answer book, please inform your invigilator immediately. If you do not inform your invigilator about a problem, the College will not be able to rectify it afterwards, and your marks cannot be adjusted to allow for the problem. 12. This paper may be removed from the examination hall after the examination has taken place. DAMELIN CORRESPONDENCE COLLEGE JUNE 2013 PAGE 1 OF 7

2 SECTION A (30 MARKS) (i) MULTIPLE-CHOICE QUESTIONS Choose the correct option for each of the following. Write only the question number and your chosen answer. For instance, if you think that the correct answer for number 1 is, then write it as Which chapter of the Magistrates Courts Act deals with the legal requirements for debt recovery? Which one of the following is an example of a liquidated sum of money? interest claimed but not agreed upon. insurance premiums. credit cards. savings accounts. 3. If a summons is not served within months of date of issue, it lapses Once a section 65A(1) notice has been issued only the can make the order. magistrate sheriff prosecutor judge 5. Attachment of a debt presently due to the judgment debtor or even owing to the judgment debtor in the future is a: debit order. execution order. judgment order. garnishee order. DAMELIN CORRESPONDENCE COLLEGE JUNE 2013 PAGE 2 OF 7

3 6. Voluntary transferring of rights from one party to another is called: cession. pledge. mortgage. lien. 7. An agreement described as a credit facility, a credit transaction, a credit guarantee or any combination of those is a: gift agreement. home agreement. credit agreement. hypothec. 8. The manner or way of determining disputes by the more informal procedure of referring the process to the National Credit Regulator for resolution is called: debt counselling. S129 procedure. complaints procedure. Alternative Dispute Resolution. 9. A consumer right as per Chapter 2 of the National Credit Act is: freedom. choice. credit. sale. 10. The procedure when a defendant receives a letter of demand or summons is stipulated under which one of the following? section50 section 74 section 57 section 60 [10] (ii) TRUE OR FALSE QUESTIONS Indicate whether the following statements are True or False. Motivate all your answers. 1. It is not necessary to keep a copy of the letter of demand on file for record purposes. 2. Jurisdiction with respect to persons, the issues prescribe who may approach the court. 3. The attachment of immovable property lapses if the sale does not take place or the immovable property is not released from the attachment within one year from the date of attachment. DAMELIN CORRESPONDENCE COLLEGE JUNE 2013 PAGE 3 OF 7

4 4. Section 65 Financial Enquiry makes provision for a procedure whereby the judgment creditor s financial position can be examined in order to enable the judgment debtor to get as much as possible as he can afford. 5. The Sheriff of the Court has to serve the garnishee order upon the garnishee as well as the judgment debtor. [5 2 = 10] (iii) MATCHING-STATEMENT QUESTIONS Match the statements in Column B to the statements in Column A. Write down the answers only, for example 1.. Column A 1. form of a real thing that comes into existence by the delivery of a movable thing 2. charge imposed by credit provider to cover administration costs incurred as a result a consumer defaulting 3. categorised as a consumer right Column B fair and responsible marketing garnishee order default judgement 4. a small credit agreement default administration charge 5. debt owing to the judgement debtor 6. the procedure applied when attached property is claimed by a third party as his property 7. where the defendant fails to file intention to defend and judgment is taken 8. procedure dealing with the judgment for payment of a sum of money (e) section 72 (f) (g) (h) section 65a credit agent pledge 9. attachment of debts (i) interpleader proceedings 10. person appointed to represent a credit provider (j) pawn agreement [10] [30] DAMELIN CORRESPONDENCE COLLEGE JUNE 2013 PAGE 4 OF 7

5 SECTION B: SHORT QUESTIONS (10 MARKS) QUESTION 1 Explain the deduction of an admitted debt. [2] QUESTION 2 Define the in duplum rule. [2] QUESTION 3 i. Define the credit agreement as per the National Credit Act. (1) ii. Briefly explain real security. (2) Define collection costs as per the National Credit Act. (3) [6] [10] DAMELIN CORRESPONDENCE COLLEGE JUNE 2013 PAGE 5 OF 7

6 SECTION C: LONG ANSWER QUESTIONS (40 MARKS) QUESTION 1 Describe a section 65A(1) cost order. (5) Define the terms lien and hypothec, and distinguish between the types of lien. (5) [10] QUESTION 2 Your client consults you advising that he received a summons demanding payment of a liquidated debt. Outline the steps you would follow to assist your client in the matter. [10] QUESTION 3 i. Explain the term mortgage. (5) ii. You act as an attorney on behalf of X Inc, an authorised credit provider. X Inc sold a vehicle to Y, a consumer. Y defaulted on his payments and you are instructed to enforce the debt. Explain how you attend to this. (5) Making use of you own fictitious parties and facts, draft a letter of demand for your client. (10) [20] [40] DAMELIN CORRESPONDENCE COLLEGE JUNE 2013 PAGE 6 OF 7

7 SECTION D: INTERPRETATIVE QUESTIONS (20 MARKS) ANSWER ANY ONE OF THE QUESTIONS QUESTION 1 Discuss in detail S65J, Emoluments Attachment Orders. (10) Discuss 'reckless credit and over-indebtedness'. (10) [20] OR QUESTION 2 Critically discuss the issues of choices, the cooling-off period and the cancellation of bookings, orders or reservations in terms of the Consumer Protection Act 68 of Make use of examples to illustrate your answer. [20] OR QUESTION 3 i. Discuss the different periods of prescription for the different kinds of debt. (5) ii. Discuss personal security as a form of security. (5) Outline the procedure regarding execution against immovable property. (10) [20] [20] Section A: 30 marks Section B: 10 marks Section C: 40 marks Section D: 20 marks TOTAL: 100 MARKS DAMELIN CORRESPONDENCE COLLEGE JUNE 2013 PAGE 7 OF 7