The High Court upholds applicability of in duplum rule to protect overwhelmed debtors

On 12 May 2025, a full bench of the High Court handed down judgment in Scott v The National Credit Regulator.1 It concerned whether, once a credit agreement was subject to a debt review process, the debtor remained in default under the original credit agreement or if the debt review process created a new agreement between the parties, thereby purging the default. This bears consequences for the applicability of the in duplum rule.