Does the payment of levies resort under the National Credit Act?

No, it does not:

  • The (Sectional’s Title) Act stipulates an owner’s obligation to pay levies; there is no “Credit Transaction” involved
  • A HOA has to pay certain expenses on behalf of ALL owners; it is not extending credit.
  • A HAO is not considered to be a Credit Provider, nor the levy-payer a “Consumer” in this regard. 
  • No “Agreement” (concerning eligibility to pay levies, or not) exists between the HOA and an owner; it is governed by the Act. 
  • Furthermore – Interest on overdue levies is paid in conjunction with the Act (Management Rule 31 (6); and not as per agreement between the two parties.