Mostert v Firstrand Bank Limited t/a RMB Private Bank

Mr David Mostert concluded a loan agreement with Firstrand Bank Ltd t/a RMB Private Bank in 2005, later increased to R30 million and secured by suretyships and a mortgage bond over residential property owned by the Carpe Diem Trust. After default, RMB obtained judgment in 2011 for the outstanding debt and an order declaring the property specially executable. Mostert and the Trust alleged that subsequent payments in 2013 and 2015 settled the arrears and reinstated the credit agreement under s 129(3) of the National Credit Act 34 of 2005, thereby barring execution. The 2013 payment was made by Mostert, while the 2015 payments were made by New Port Finance Company (a surety) from proceeds of pledged shares after enforcement by RMB. The appellants sought to interdict execution against the property.

The appeal was dismissed. The appellants were ordered to pay the costs of the appeal on the scale of attorney and own client, including the costs of two counsel, jointly and severally.

The case clarifies the interpretation of s 129(3) of the National Credit Act by confirming that reinstatement of a credit agreement requires payment by or on behalf of the consumer. It limits the protective scope of the section by excluding payments arising from enforcement against third-party security, thereby balancing consumer protection with credit providers’ enforcement rights.