Frequently Asked Questions

You have the right to obtain legal advice should you deem it necessary. You have the right to be treated with dignity at all times. You have the right to confidentiality. You have the right not to be contacted before 06h00 in the morning after 21h00 in the evening, or on a Sunday. You have the right not to be harassed, humiliated, embarrassed or threatened.

They have the right to contact you for the payment of a debt. It is not regarded as harassment if a debt collector asks for payment. If you have made a payment, please provide the proof thereof for the matter to be resolved.

Debt Collectors can now summons consumers for their costs in court should they so wish as the fees are promulgated in an Act.

The NCR is the National Credit Regulator, the organization that regulates the credit industry in terms of the National Credit Act, 34 of 2005. They must ensure that the rights of consumers are protected and that credit providers adhere to the obligations imposed on them by the National Credit Act, 34 of 2005. They do not regulate the debt collection industry.

In a community of property marriage, all debt incurred by the spouses before and during the marriage forms part of the common estate, and this debt can include maintenance obligations to a previous spouse or children from a previous relationship. Being jointly liable for each other’s debts can be problematic, especially in the case of insolvency. If one spouse becomes insolvent, the joint estate can effectively be declared insolvent and all the assets in the estate could be sequestrated.

In a marriage out of community of property without the accrual, each spouse is responsible for their debt and the other spouse cannot be held responsible. Therefore, if a husband files for insolvency, as a general rule the assets of his wife cannot be touched by creditors. These assets include assets that the wife owned before the marriage, assets that she is entitled to in terms of the ANC, and assets that she acquired during the marriage from her income.

When a couple is married with the accrual system, only the debt that they incurred from the commencement of their marriage is included in the accrual calculation. Any debt that was incurred before their marriage is excluded from the accrual calculation. The right to share in the accrual can only be exercised when the marriage is dissolved which means that the accrual cannot be attached by creditors while the marriage is in existence.

Every person in South Africa is registered with a Credit Bureau. If a person does not pay their accounts, they may be listed on that Credit Bureau as a default payer by the creditor. Further, if a judgment has been obtained against them this judgment will be uploaded by the credit bureau via the court.

The above directly affects the debtor’s ability to obtain credit from any credit provider. A default listing will remain on his/her name until the debt in question has been settled. Once the debt has been settled, the default will be removed.

A judgment debt may only be removed from the Credit Bureaus by having the judgment rescinded by the court that granted it. Judgement debts, however, will remain on the credit bureau for 5 years or until rescinded and will remain legally due and payable for 30 years.

In terms of the POPI Act and the Debt Collectors Act, we must ensure that we communicate with the correct parties to protect privacy and confidential information.

Collect A Debt has several payment methods available for debtors in making it as convenient as possible:

• Directly at the office with cash, debit or credit card
• EFT – Electronic funds Transfer ATM payment
• Stop Order – You instruct your bank to pay us
• Debit Order – We will arrange this with your bank with your consent.

This letter is drafted on company letterhead and confirms that the debt handed over is paid in full.

Debt review is not a judgment nor an administration order. It’s an application to the court in terms of section 86 of the National Credit Act, 34 of 2005, if the debtor believes that he/she is over-indebted.

The debtor can approach a registered debt counsellor, who will assist in assessing whether the debtor is over-indebted or not.

It is important to note the differences between a debt collector and a debt counsellor as they are in a sense opposing occupations. It is important to verify that a debt counsellor is registered. You can do this on the NCRs website: www.ncr.org.za.

After the debt counsellor has assessed the debtor’s financial position and has found the debtor to be over-indebted, the debt counsellor will propose a debt re-arrangement plan to all parties. Once a debtor has applied for debt review, all credit bureaus will be notified to record this and the debtor will not be able to access credit.

In terms of the Prescription Act, 68 of 1969, most debts are prescribed after 3 years. Some type of debts have their periods for prescription. Prescription can be interrupted in several ways. One of these is if you have made a payment on the debt, then the prescription will start to run from the last payment date.

Judgement debt, for example, prescribes after 30 years and to have this reversed the said debt must be paid in full. Credit bureaus list judgements on your credit profile hence the old terminology being referred to as ‘blacklisting’.

Yes. An agreement is not an agreement if it is not an agreement. It is a trite law that debt collectors must accept what is being offered to them. The debt collector does not have to agree with your payment plan or offer that you make. The payment offer is a negotiated plan and both parties must be in agreement. If they don’t agree then there is no agreement.

No. Under no circumstances is a debt collector allowed to threaten or harm a debtor, the property of a debtor or that of anyone related to the debtor.

If we tell you that legal action will be taken this is not regarded as a threat as we intend to do so and we will do so. This, however, should not be confused with court procedures where warrants of execution on property are executed by the sheriff of the court.

Debt collectors are bound by a strict Code of Conduct enacted under section 14 of the Debt Collectors Act, 114 of 1998. The Code states that a debt collector will not humiliate or use abusive, obscene, or defamatory language towards a debtor or his or her relatives during any form of communication whether orally or in writing. A debt collector will further not intimidate or induce a debtor to pay.

Yes. Interest tempore morae, or as its more commonly known; mora interest, is the interest charged when a payment is not made timeously, and an interest rate has neither been agreed between the parties nor is it prescribed by statute.

Mora interest is a common law right, meaning that it automatically applies to contracts unless it is expressly, plainly and unambiguously excluded by agreement between the parties. If a contract or agreement is silent on the rate of interest, then interest can be claimed at the prescribed rate in terms of the Prescribed Rate of Interest Act, 55 of 1975

Please see the Expenses and Rates Annexure

A service provider may, in terms of the contract between themselves and the consumer, hand an account over to a third-party collection company of their choice to collect the outstanding debt. This action might be taken when you as the consumer fail to honour your monthly payment agreement with the service provider in the first instance.

There is nothing in the law that enforces any responsibility on the credit provider to notify you that you are being handed over. It is trite law that notice should be given. If you failed the first payment agreement date the debt becomes legally due and payable and you have defaulted in your payment arrangement.

It simply means that the client or credit grantor has moved your unpaid account/debt from them to a debt collector to collect the outstanding debt on their behalf to get paid. The collection agency with this mandate will then attempt to make contact with you as the consumer/debtor to structure payment arrangements and provide alternative payment methods.

Research shows that the longer the debt remains outstanding the more the risk of non-recovery.

Generally, most creditors hand over 60 -90 days overdue as the debtor has already broken the terms of the credit. The debtor has already shown their lack of response and payment.

Indicators of when debt should be handed over

1. The debtors' contactable telephone numbers are no longer active
2. Repeated requests from the debtor for supporting documentation and invoices
3. The debtor claims he/she never received the demand/invoice for payment
4.  No response from the debtor on mail sent
5. Repeated assurance by the debtor that the matter will be attended to
6. Broken promises for payment
7. The responsible person who should be making the payment is never available
8. Debtor becomes arrogant – “Do whatever you want”
9. Correspondence becomes returned mail
10. The invoices have become disputed with various raised objections as to the service rendered despite promises to pay
11. The debtor claims to be unemployed or bankrupt
12. The debtor accuses you of using the wrong contactable details.
13. Assurance that payment was just made via EFT.

We start the legal process any time after 90 days from handing over if no payments were received. We start by assessing the possibility of recovery including the financial position and assets of the debtor.

There is mandatory registered mail that needs to be sent before we can issue a summons. This is essential as it forms part of the legal requirements by the courts. Every attempt to make contact with the debtor must be explored and if the debtor avoids any contact we will send our field collectors to investigate and report back to the office.

We collect any outstanding amount.

It depends on the type of debt. In terms of the Prescription Act, 68 of 1969, most debts are prescribed after 3 years. There are various exceptions for example debt secured by way of a mortgage bond, a judgment debt or taxation imposed by the state or by law, state loans and so forth. These debts each have their periods for prescription. Prescription can be interrupted in several ways. One of these is by the debtor making a payment on the debt. The prescription will then start to run afresh on the due date of his next payment.

Judgement debt for example prescribes after 30 years. It is for this reason that we take legal action as judgments are recorded by the credit bureaus on the consumer's credit record and will influence any further credit being granted. We find that many consumers pay up immediately before judgment and even hereafter if they find out that the judgment is in the way of purchasing vehicles, home loans, credit card applications etc.

We collect all types of debt except rental collections. The debt must be legally due and payable and supported with evidence e.g. invoices, COD notices, contracts, credit agreements etc.

We collect on secured and unsecured debt that includes medical debt, commercial debt, loan debt, mortgage debt, third-party claims, debt for professional services rendered, debt for goods sold and delivered or any other type of debt.

No. You do not have to send a letter of demand, it is trite law that notice must be given. Many creditors send numerous letters of demands to their debtors but this has proved to be a waste of time and expense.

If payment arrangements are broken you have every legal right to start action. You need no notice except if this was a credit agreement and the parties agreed to notices therein but this is not compulsory by law.

Creditors find themselves in a predicament by not hand over as soon as promises by debtors are not forthcoming. The longer the debt is outstanding the longer it can take for payment. If the debtor had the money in the first instance you would have been paid. What you now need is a debt collection company to prioritise the debt so your debt can be first in line for payment if cash becomes available.

Holding on to the debt only makes this process longer and extends getting paid for longer periods.

There is nothing in law that enforces any responsibility on the credit provider to notify you that you are being handed over. It is trite law that notice should be given. If you failed the first payment agreement date the debt becomes legally due and payable and you have defaulted in your payment arrangement.

Follow these easy steps to start the hand over process:

Step 1: Understand the terms to become a client

Step 2: Sign up and agree on the terms

Step 3: Complete and sign the agreement

Step 4: Prepare your debt-supporting documents and send

The process of handing over debt to a debt collection agency.

Only the circumstances of the debtor will determine what the turnaround time will be for payment and varies from one to another. If the debtor voluntarily agrees to a payment plan, payment will be made to you monthly as we receive it accompanied by a detailed statement and payment. We will deduct the collection commission and pay over the balance to you.

All debts follow the debt collection processes for up to 90 days and then are processed for legal action if no payment was received to comply with section 129 of the National Credit Act, 34 of 2005.

Monthly progress reports are sent via our Reporting Department to all clients that have active accounts.

No. Simply because it is now allowed in terms of the Debt Collector Act, 114 of 1998 because it does not form part of the allowed and promulgated Annexure B fees. The act is clear that debt collectors may only collect what is legally due and payable. Adding this will be in contravention of the Act.

The Debt Collectors Act, 114 of 1998 makes provision for debt collectors to charge the debtor necessary fees and expenses that is referred to as Annexure B fees in terms of the Act.

Our clients do not pay these fees – only the debtors are liable. For a detailed schedule of costs that debt collectors may charge, visit the website for the Council of Debt Collectors: http://cfdc.org.za/downloads/ or ANNEXURE B

No. This does not form part of the Annexure B fees that debt collectors may charge debtors as contained in the Debt Collectors Act, 114 of 1998.

Our company provides this service free of charge to our clients.

We all understand that a tracing fee is an inherent part of our industry and no one can dispute that being prevented from charging a tracing fee to the debtor's account seems fundamentally unfair but it’s the law and therefore illegal.

Our fee structure is based on a “No Collection – No Fee” basis. The fee is based on a collection commission percentage determined by the capital due, quantity of accounts and age of the debt.

Generally, if your account is 30 days overdue, we will charge you 10%, 60 days overdue, 15%, 90 days overdue, 20%, 120 days overdue, 25%, and 150 days overdue, 30%.

To determine the age of the debt we consider the invoice date or service date and/or last payment date.

We are a debt collection company that not only collects arrear debts but also has the added advantage of an in-house legal team that processes legal documentation through our courts at no additional cost to you.