The Statutory in duplum Rule as an Indirect Debt Relief Mechanism* MICHELE KELLY-LOUW** University of South Africa 1 Introduction In 2007 it was estimated that the size of the South African consumer-credit market was some R800 billion. 1 At the end of June 2008 it was estimated that consumers owed credit providers about R1,12 trillion in household debt. 2 Two years later, at the end of June 2010, the total outstanding consumer credit balances (or gross debtors’ book) was R1,15 trillion. 3 The number of applications received for credit increased by 503,500 from 6,04 million in March 2010 to 6,54 million in June 2010, representing an increase of 8,34 per cent (an increase of 17,13 per cent when compared to the same period in 2009). 4 At the end of June 2011 credit bureaux had the records of 18,84 million credit-active consumers. 5 These statistics illustrate the sheer size of the South African consumer-credit industry and show a steady growth in the size thereof. Consumer credit is an important part of today’s society. Credit can and often does uplift the lives of consumers. For many consumers, being able to obtain credit is the only way that they can afford to buy things, especially expensive things such as houses, flats, land, motor vehicles and furniture. Credit also allows consumers to pay for the cost of building their own home or making improvements to their existing one. Consumers use credit to pay for their consumables and necessities (clothing, food, fuel and utilities), as well as for their own or their children’s tertiary education. Many types of credit purchases are made on a regular, sometimes daily, basis. Therefore, many consumers have credit cards, vehicle and asset finance, home loans, personal loans, study loans, or clothing store accounts. However, making use of credit is not without its drawbacks. For some consumers, mainly those in * This article is based on my inaugural lecture as Professor of Banking Law in the Department of Mercantile Law, delivered at the University of South Africa in Pretoria on 6 October 2011. ** BIuris LLB LLM LLD (Unisa). Professor of Banking Law in the Department of Mercantile Law, University of South Africa, Pretoria. e-Mail: kellym@unisa.ac.za. 1 See the National Credit Regulator’s Annual Report (2007) at 9, available at http://www.ncr.org.za (last accessed on 1 September 2011); and M Kelly-Louw ‘The Prevention and Alleviation of Consumer Over-indebtedness’ (2008) 20 SA Merc LJ 200 at 200. In this contribution, words in the singular also mean in the plural and vice versa, and words in the masculine also mean in the feminine and neuter. 2 See the National Credit Regulator’s Annual Report (2008/2009) at 16, available at http:// www.ncr.org.za (last accessed 1 September 2011). 3 See National Credit Regulator’s Consumer Credit Market Report (Second Quarter) (June 2010) at 1, available at http://www.ncr.org.za (last accessed 1 September 2011). 4 Ibid. 5 See Anon ‘Credit Activity Increases’ (20 September 2011) Legalbrief Today, available at http://www.legalbrief.co.za (last accessed 22 September 2011). © 2011. All rights reserved. Cite as: (2011) 23 SA Merc LJ 352–375. 352