Your Rights When Debt Collectors Contact You

The phone rings again. It is the debt collector, the fifth call this week, and now they have called your mother too. Owing money is stressful enough. Being treated as if you have no rights makes it worse. You do have rights, and knowing them helps you respond calmly.

What is happening

In South Africa, debt collectors must be registered with the Council for Debt Collectors under the Debt Collectors Act, unless they are attorneys. They must follow a code of conduct. The National Credit Act adds further protections for credit agreements.

A debt collector may contact you to ask for payment and to agree a payment arrangement. A debt collector may not:

• threaten you with violence, arrest or prison, or pretend to be the police, a sheriff or a court;
• harass you with repeated calls or contact you at unreasonable times;
• tell your employer, neighbours or family about your debt to shame you;
• use abusive or insulting language;
• charge fees or interest that the law does not allow.

Before a credit provider can take you to court on a credit agreement, it must usually send you a formal letter (often called a section 129 notice) setting out your options, including going to a debt counsellor. Money cannot simply be taken from your salary: a garnishee (emoluments attachment) order must be granted by a court.

Also know the in duplum rule: once you are in default, the interest and fees added cannot be more than the unpaid balance at that time. And debt that has prescribed may not be collected.

Signs to notice

• You receive frequent calls, SMSes or WhatsApps about a debt.
• The collector threatens arrest, prison or taking your furniture without a court order.
• Your family, neighbours or employer have been contacted.
• The amount claimed seems far higher than what you owed.
• You are not sure the debt is yours or how old it is.

30-second self-check

Answer yes or no.

• Have you been threatened with arrest or prison over a debt?
• Has a collector contacted your family, neighbours or employer about your debt?
• Do calls come late at night, very early, or many times a day?
• Has the collector refused to give their registration number or a statement?
• Is the amount now much more than twice what you originally owed?
• Is the debt older than three years with no payment or acknowledgement from you?

0-1 yes: The contact may be within the rules. Ask for a statement and try to agree a realistic arrangement.
2-3 yes: Some behaviour may cross the line. Keep a record and ask for the collector's registration number and a full statement.
4 or more yes: What you describe may break the law. Keep evidence and consider laying a complaint with the Council for Debt Collectors, and get legal advice.

What you can do next

• Today: Stay calm. Ask for the collector's full name, company, registration number and a written statement of the debt. Say you will respond in writing.
• This week: Check the debt against your records. Is it yours, is the amount right, and when did you last pay? Offer an affordable arrangement in writing if the debt is valid.
• This month: If there is harassment, lay a complaint with the Council for Debt Collectors. If an account is part of a credit agreement, you can also complain to the NCR or the Credit Ombud.
• Never share your banking PIN or OTPs, and do not sign an acknowledgement of debt before you understand it.
• If you are threatened with violence, report it to SAPS on 10111.

Your tool

Debt Collector Rights Checklist - a checklist of what collectors may and may not do, a call log to record every contact, and template wording for asking for a statement or making a complaint.

When to get professional help

Get legal help if you receive a summons, if a garnishee order appears on your payslip that you did not know about, or if you are being harassed. Being chased for money can cause real anxiety and shame. Talking to a counsellor alongside sorting the debt can ease that.
Who can help: Consumer attorney, Legal Aid SA, NCR-registered debt counsellor, counsellor

Getting help in South Africa

The Council for Debt Collectors registers collectors and handles complaints about their conduct. The National Credit Regulator (ncr.org.za) handles complaints about credit providers under the National Credit Act. The Credit Ombud (creditombud.org.za) helps resolve credit disputes. Legal Aid South Africa (legal-aid.co.za) may assist if you qualify. University law clinics also help with garnishee orders and debt disputes.