Game-changing consumer case - what it means for employers (4 min)

In August 2019, Summit and the University of Stellenbosch Law Clinic launched a groundbreaking application in the Cape Town High Court requesting clarity on the correct interpretation of the so-called "Ultra In Duplum" rule, which limits the fees which can be charged to a consumer when judgment is taken against them for unpaid debt in terms of the National Credit Act.

On 13 December 2019, the Cape Town High Court handed down their judgment, confirming each point in Summit and the University of Stellenbosch Law Clinic’s ambitious application.

This was a game-changing outcome for consumers, as all fees - including legal fees - must now be capped at the in duplum rate, and no legal fees can be charged to a consumer unless verified by the Court’s Taxation Master.

Watch to find out how this affects employers.

employers