Sithembiso Bokleni v FirstRand Bank Limited t/a WesBank

The applicant entered into an instalment sale credit agreement with the respondent bank in June 2014 for the purchase of a motor vehicle. The agreement required 59 monthly instalments and a final balloon payment of R52,148. After completion of the monthly instalments, the balloon payment remained unpaid. The respondent instituted action, obtained default judgment in November 2020 cancelling the agreement and authorising return of the vehicle, and later repossessed the vehicle in March 2023. In April 2023, more than two years later, the applicant applied for rescission of the default judgment, alleging non-receipt of the summons and the section 129 notice under the National Credit Act, and contending that the balloon payment was not properly explained to him.

The application for rescission of the default judgment was dismissed with costs on scale A.

The case reaffirms the strict requirements for rescission of default judgments under South African common law and procedural rules, particularly in the context of credit agreements governed by the National Credit Act. It underscores that consumers must demonstrate both a reasonable explanation for default and a bona fide defence, and that alleged non-compliance with section 129 of the NCA does not automatically invalidate enforcement proceedings.