Monday, 4 April 2011

We love lawyers. Yes, honestly, we do.

You can rest assured we will be telling all the micro-lenders, cash loan operators and general loan sharks about this.

From a judgment by Judge J Dow at the High Court in Lobatse on 18th August 2008 in the case of KGOLOLESEGO FINANCIAL COMPANY (PTY) LTD v KETSHOTSENG 2008 (2) BLR 269 (HC).
"The in duplum rule serves to aid debtors in financial difficulties by holding that it is unlawful to recover interest equal to or more than the capital sum upon which interest had accrued.
The rule serves an important social function by protecting debtors and providing that any clause in a contract that seeks to deprive a person of the protection afforded to them by the law is unenforceable by reason of its illegality or on the basis that it offends public policy.

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