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Cool, Calm and Collected

You may be confronted by debt collectors knocking at your door, if those demand letters have been coming at you thick and fast. This situation can be considerably unnerving and often catches one off guard, leaving you vulnerable to coercion.

As such, it’s wise to prepare yourself by making a point of understanding how the official debt collection process works and knowing your rights, so you’ll be able to keep your cool and hold your ground, should that day come.

 

B**** Better Have My Money!
Debt Collection is governed by the National Debt Collection Act 114 of 1998 (NDCA) and all debt collectors must be registered with the National Council for Debt Collectors. However, attorneys and agents of attorneys aren’t legally required to be registered with the Council.

Microlenders, credit providers and other finance companies often hand their debt books over to debt collection or legal firms. Thereafter, debt collectors or attorneys will collect the principal debt and interest owed by debtors, on behalf of the creditor. Debt collectors will also take a fixed fee, which is set by the Council.

 

When They Come to Collect 

According to the Council’s Code of Conduct, debt collectors must “have due regard for the person, the property and the civil rights of a debtor, and shall ensure that any action taken against a debtor does not humiliate, threaten or cause distress to such a debtor”.

When confronted with debt collectors, it’s essential you’re able to discern whether or not they are violating the Council’s Code of Conduct. In line with Section 15 of the NDCA, you have the right to lodge a complaint with the Council, if a debt collector

  • Collects an amount from you that is higher than the sum of the capital debt, interest and debt collector’s fee, set by the Council.
  • Intimidates, forces or threatens you into paying the debt i.e. by saying that failure to do so will result in a legal action against you, when there is no such intention in place.
  • Misrepresents their communications as judicial or legal documents, i.e. mimics the design of an official notice of court action.
  • Uses “obscene, defamatory or threatening language”, when communicating with you.
  • Harasses or embarrasses you. Debt collectors are prohibited from phoning or visiting you from 9pm – 6am or on a Sunday at all.
  • Threatens to disclose information concerning your debt to your employer. Debt collectors are prohibited from doing so, until a final judgment is made. Though, they are allowed to confirm your salary or employment status with them.
  • Spreads false information about you or threatens your creditworthiness.
  • Conceals their identity or misrepresents their reason for contacting you.

If the Council finds a debt collector guilty of misconduct or contravention of the Code of Conduct, their sentence may range from being suspended, fined, ordered to reimburse the debtor, or even to being prosecuted as a criminal. If you suspect you’ve been wronged by debt collectors, call Reckless Lending for help today.