Debt Collectors: Your Rights and Responsibilities

The calls start early and keep coming. Sometimes the collector is rude, threatens to "blacklist" you or send the sheriff, or even phones your family or your boss. Feeling ashamed or scared is common. But debt collectors must follow rules, and knowing them puts you back in control.

What is happening

Debt collectors in South Africa must be registered with the Council for Debt Collectors, under the Debt Collectors Act 114 of 1998. Attorneys who collect debts fall under the Legal Practice Council. Both must follow a code of conduct.

What a collector may do: contact you at reasonable times to ask for payment, send letters of demand, agree a payment arrangement, and, if you do not pay, hand the matter to an attorney to take legal action.

What a collector may not do: threaten you with violence or arrest, use abusive language, harass you with constant calls, contact you at unreasonable hours, discuss your debt with your employer, neighbours or family, pretend to be a sheriff or police officer, or send documents that look like court papers when they are not. They cannot take your belongings, your car or your salary without a court order. Only a sheriff, acting on a court order, can remove goods, and a deduction from your salary (an emoluments attachment order, often called a garnishee) needs a court process.

For credit agreements, the National Credit Act adds protection. Before suing, a credit provider usually must send you a section 129 notice, which suggests options like a debt counsellor or dispute resolution. The in duplum rule means that while you are in default, interest, fees and charges added cannot be more than the unpaid balance.

Prescription: most ordinary debts prescribe after three years under the Prescription Act 68 of 1969, if you have not acknowledged the debt, made a payment, or been served with a summons in that time. The National Credit Act prohibits collecting prescribed debt from credit agreements. Be careful: making even a small payment or signing an acknowledgement may affect prescription.

Your responsibilities: debt that is valid is still owed. Ignoring it can lead to a court judgment and higher costs. Ask for proof and a statement, and deal with it in writing.

A mashonisa who keeps your ID, bank card or SASSA card is breaking the law. You can report this to SAPS and the National Credit Regulator.

Signs to notice

• You get calls at night, on Sundays or many times a day.
• The collector threatened arrest, violence or to take your things.
• Your family, neighbours or employer were told about your debt.
• You are asked to pay a debt you do not recognise or that is very old.
• Fees and interest keep rising with no clear statement.
• Someone is holding your ID or bank card until you pay.

30-second self-check

Answer yes or no to each question.

• Is the debt more than three years old with no payment since?
• Have you been threatened or insulted?
• Has anyone contacted your employer or family about the debt?
• Have you not received a statement showing how the amount was worked out?
• Are you being asked to sign an acknowledgement of debt?
• Do debt repayments take more than a third of your income?

0-1 yes: Ask for a statement in writing and agree a plan you can afford.
2-3 yes: You may be facing unlawful practices. Keep records and lodge a complaint.
4 or more yes: Get advice from a registered debt counsellor or legal service before you pay or sign anything.

What you can do next

• Today: Keep a log of every call and message: date, time, name, company and what was said. Save letters and voice notes.
• This week: Ask in writing for the collector's registration number, the original creditor, a full statement and proof of the debt. Do not sign an acknowledgement of debt you have not checked.
• This month: If the debt is valid, offer an affordable plan in writing. If you are overwhelmed, see an NCR-registered debt counsellor about debt review.
• Complain to the Council for Debt Collectors about unregistered or abusive collectors.
• If you receive a summons, act immediately. See "Letters of Demand and Summonses Explained".

Your tool

Debt Collector Rights Checklist - helps you check whether a collector is following the rules, whether a debt may have prescribed, and prepares a written request for proof.

When to get professional help

Get help if you cannot afford your debts, if you have received a summons or garnishee order, or if you think a debt has prescribed but the collector disagrees.
Who can help: an NCR-registered debt counsellor (ask for the NCR registration number), a consumer attorney, Legal Aid South Africa, a money coach

Getting help in South Africa

• National Credit Regulator (ncr.org.za): complaints about credit providers and to check a debt counsellor's registration.
• Council for Debt Collectors: register check and complaints against debt collectors.
• Legal Practice Council (lpc.org.za): complaints about attorneys collecting debt.
• Credit Ombud: helps with disputes about credit and credit bureau listings.
• Legal Aid South Africa (legal-aid.co.za): for help with court papers if you qualify.