In the recent decision of Ratlou v MAN Financial
Services SA (Pty) Ltd [2019] ZASCA 49, the Supreme Court of Appeal
("SCA") had to adopt a purposive approach to the
interpretation of the term "credit transaction",
contained in the National Credit Act ("NCA"), in order to
avoid triggering its application in the context of a settlement
agreement.
The facts giving rise to the case were relatively
uncontroversial: During 2013, Raltlou acquired a business called
PNT and in 2014 provided MAN with a general covering security in
respect of PNT's debt to MAN (at the time, it was given to
cover PNT's lease obligations to MAN who had leased heavy duty
trucks to PNT). This surety remained in place in December 2014 when
PNT leased seven new trucks from MAN. Shortly thereafter, PNT
defaulted on the monthly rentals. In September 2015, the parties,
including Mr Ratlou, concluded a settlement agreement to cover the
monies outstanding under these lease agreements which made
provision
