Debt Collections

How worried should you be when the debt collectors come knocking?

In South Africa, the National Debt Collection Act (hereinafter referred to as the ‘Act’) governs the process of collecting debts. Debt collection occurs when an attorney, a person who is an agent of an attorney, or a registered debt collector collects, on behalf of the client, the capital amount plus lawful interest as well as the debt collector’s fee.

As a result of the debt collector being under the strict instructions of his superior, he often takes to unethical methods of obtaining the specified amount of money as efficiently as possible. Such dishonest ways can include any one of the following: Using force or fears towards the debtor, making duplicitous or misleading representations, spreading or threatening to spread incorrect information concerning the creditworthiness of a debtor or even violating the provisions contained in the code of conduct.

In terms of section 15 of the Act, any unprincipled and dishonourable behaviour must be reported to the Council for Debt Collectors as they are obliged to investigate such a charge. There are a number of sanctions that can be instituted against the debt collector and they range from a mere suspension to a more severe criminal prosecution.

If you ever feel as if you were being unfairly treated by a debt collector, please do not hesitate to contact us immediately. We will be able to assist you in duly reporting the untoward behaviour as well as settling any debts that you may have outstanding.