A company lent money to one of its employees to buy a house. The loan was for about half a million rand and the mortgage loan agreement was concluded on 2 June 2006. A mortgage bond was registered by the employee over the property in favour of the company in 2006. The employee, recently dismissed, failed to comply with his obligations in terms of the loan agreement by failing to pay the monthly installments. The company is not a registered credit provider, despite having provided similar credit to a couple of other employees over the last few years.

The following questions now arise:
(1) How is the NCA going to impact on this transaction come 1 June 2007? I have issued summons against the debtor and my priority is to obtain judgement before 1 June 2007 when section 89 of the NCA comes into operation.
(2) Am I misguided when advising my client that the transaction will be invalid and unenforceable after 1 June 2007?
(3) Is the act in other words retrospective?