DEBT COLLECTION LAWYERS IN CAPE TOWN AND JOHANNESBURG
– Know and protect consumer rights in the debt collection process –
DEBT COLLECTION IN SOUTH AFRICA
South Africans are experiencing high levels of consumer debt and are defaulting on their financial commitments. The National Credit Act 34 of 2005 has, however, made it easy for consumers to inform creditors of their inability to pay and dispute or contest debts.
CONSUMER RIGHTS & DEBT COLLECTION IN SOUTH AFRICA
The National Credit Act regulates the conduct of debt collectors, and debt collectors should follow these guidelines to ensure fair and reasonable debt collection practices:
WHAT ARE THE STAGES OF THE COLLECTION PROCESS?
In line with the National Credit Act and the Consumer Protection Act 68 of 2008, Julies Attorneys use several lawful methods for debt collection in South Africa, including:
- Letters of Demand: These are formal letters sent to delinquent payers that demand payment of the debt in a specific timeframe.
- Credit bureau listing: This is a process where Julies Attorneys list the debt on the credit bureau, which can have a negative impact on the debtor’s credit score and ability to obtain credit in the future.
- Obtaining judgment: A judgment granted against the debtor can be enforced through various means such as attachment orders, sequestration, or execution against a movable or immovable property.
- Garnishee Order: A court order can also direct an employer or bank to deduct money from a debtor’s salary or bank account to pay off a debt.
- Seizure and sale of assets: This is a legal process where the attorney can obtain a court order to seize and sell assets belonging to the debtor to pay off the debt.
