Credit reporting firm, Experian, is raising the red flag on unscrupulous debt collectors in South Africa. As most middle-class South Africans are all too aware, the cost of living only continues to increase. Since COVID, the prime interest rate has climbed from 7% to nearly 11%, and certain food prices have soared by 40%.
Electricity is some 450% more expensive than it was a decade-and-a-half ago. Likewise, fuel prices have been tracking steadily upwards over the same period. As such, consumers are struggling to make ends meet with salaries that have not risen at the same pace as inflation.
DEBT COLLECTORS IN SOUTH AFRICA
As a result, those who are unable to keep up with their monthly expenses now face the scourge of debt collectors in South Africa. However, the reality is many are being pushed around by unfair and often illegal collection tactics, reports The Citizen.
According to the credit rating firm’s report, 10-million South Africans are more than three months behind on various repayments. In turn, they face highly pressured debt collectors in South Africa. However, there are plenty of laws protecting consumers from these nefarious collection tactics.
WHAT DEBT COLLECTORS WILL DO
Here’s a list of common tricks debt collectors in South Africa will use, that you should be wise to:
- Issuance of a Section 129 notice. They are often sent like a ‘final warning’ to scare people, when they are in fact merely the first step.
- Debt collectors will call late at night or on weekends, often making threats of extortion at the same time.
The number one thing to remember when dealing with debt collectors in South Africa is that you’re protected by the National Credit Regulator (NCR). As such, debt collectors must adhere to the following laws:
- You have 20 days to respond to a Section 129 before any legal action can be taken against you.
- Collectors cannot call you after hours or use intimidation tactics. If you feel you are being harassed, report it to the Debt Collectors Council HERE.
- The consumer has the right to negotiate repayment. You may ask for payment plans or apply for debt mediation.
- If you’ve not been contacted by a creditor for three years or more, the debt is no longer collectible. This is known as prescribed debt.
- All debt collectors in South Africa must be registered and be able to prove the debt. No proof, no payment.
HAVE YOU EXPERIENCED HARASSMENT FROM A DEBT COLLECTOR?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
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