Letter for Cars being Repossessed when Client has cleared the Arrears.

As you are aware, you are seeking to repossess his vehicle at the current time.

It appears to be common cause that he is not currently in arrears though he has been in the past.

Thus you seem to be relying on an acceleration clause of some kind.

In my opinion, it is not longer possible under South African law to repossess a vehicle using an acceleration clause when the person is no longer in arrears.

This has been made very clear in the Constitutional Case of Nkata (available http://www.saflii.org/za/cases/ZACC/2016/12.html).

In this case there were essentially the same facts with respect to a house instead of a car. The same constitutional principle applies.

I think once you make yourself familiar with this case, it will be clear that you cannot continue, legally, to attempt to repossess this car.

There is in any case no point as  client is up to date.

Should you prefer to attempt to proceed we will make application in the High Court rescission of the execution in this matter and for a declaration which will clarify that repossessions are not possible in these circumstances. This will then apply to all your operations and not simply this one car. If this went to the Constitutional Court, it would also result in considerable costs to the bank.

I would seem then better if the repossession ceases and the client continues with the payments.

Please confirm you agree to not further pursue this matter for the time being or if we will need to approach the court.