#debt collection procedures
“Everyone has the right to have access to social security, including, if they are unable to support themselves and their dependants, appropriate social assistance. The state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of each of these rights”
While every attempt has been made to ensure the information published here is accurate, the Black Sash does not take responsibility for any loss or damage that may arise out of the reliance on or use of this information. The contents do not constitute legal advice. This information sheet was last updated in February 2013.
The National Debt Collection Act 114 of 1998 regulates the process of collecting debts in South Africa. Debt Collection is 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 and the debt collectors fee.
Section 8 of the Act says an attorney, or his or her agent, or a registered debt collector may act as a debt collector. A registereddebt collector is a person registered with the Council for Debt Collectors.
A debt collector can only collect the capital amount of the transaction; lawful interest; and his or her administration fee and expenses. The fees are structured by the National Council for Debt Collectors.
YES! Section 15 of the Act tells us what conduct would be considered “improper” or unethical. A debt collector is NOT allowed to …
You must report any unethical behaviour to the Council for Debt Collectors which is obliged to investigate any charge (as stipulated under section 15 of the Act).
If the Council finds the debt collector guilty of misconduct, then one or more of the following sanctions will be applied:
YES! Section 15 of the Act provides for a procedure to deal with unethical behavior or misconduct which does NOT exclude criminal prosecution
The National Council for Debt Collectors