Debt Collectors in South Africa: Harassment and Verification

What rights do you have when debt collectors contact you in South Africa?

You have the right to fair treatment, privacy, accurate information, and proof of the debt. You can choose how and when they contact you, and you can challenge unlawful charges or prescribed debts.

• Key laws: National Credit Act 34 of 2005 (NCA), Debt Collectors Act 114 of 1998 and Code of Conduct, Magistrates’ Courts Act 32 of 1944, Prescription Act 68 of 1969, Protection of Personal Information Act 4 of 2013 (POPIA), Consumer Protection Act 68 of 2008.
• Your core rights:
  • Verification: Ask for the original credit agreement, statements, detailed charges, and proof of the collector’s mandate or cession of debt.
  • Privacy: You can set reasonable contact times and request written-only contact. POPIA protects your data from unlawful sharing.
  • No harassment: No threats, intimidation, or public shaming. No calls at unreasonable times or at work if you say so.
  • Cost control: In duplum rule under NCA s 103(5) caps interest and certain fees while in default to the unpaid principal amount at default.
  • Prescription defense: Most unsecured debts lapse after 3 years absent payment, written acknowledgement, or service of summons.
  • Due process: An NCA s 129 notice must precede litigation. Garnishee orders need judicial oversight and must be just and equitable.

How do you stop harassment by a debt collector?

Tell the collector in writing to stop harassing conduct and to use only the contact method and times you specify. Keep a call log, save messages, and escalate to the Council for Debt Collectors or the NCR if the conduct continues.

1. Document the conduct
   • Keep a call log with date, time, number, collector’s name, and what was said.
   • Save voicemails, SMS, emails, and screenshots.
   • List witnesses, especially if calls came to your workplace or family.
2. Send a cease-and-desist letter
   • Direct the collector to communicate only in writing to your chosen email or postal address.
   • Specify acceptable hours, for example weekdays 9:00-17:00.
   • Demand compliance with the Debt Collectors Code and POPIA.
3. Escalate if needed
   • Complain to the Council for Debt Collectors for registered collectors.
   • Complain to the National Credit Regulator for credit providers and debt counsellors.
   • If the collector is an attorney, complain to the Legal Practice Council.
4. Consider protection
   • If you feel unsafe, speak to SAPS. Threats of violence or impersonating law enforcement are criminal.
   • Tell your employer you are handling the matter and that private debt calls at work must stop.

How do you verify a debt and check if it is prescribed?

Ask for written proof: the signed credit agreement, full statement, itemised charges, and proof the collector is authorised to collect. Compare dates to see if 3 years have passed without payment, written acknowledgement, or summons - if so, raise prescription in writing.

1. Request these documents in writing
   • Identity: Your full names, ID number, account number.
   • Debt details: Original creditor, date opened, principal amount, interest rate, and last payment date.
   • Authority: Letter of demand, mandate from the creditor, or deed of cession if the debt was sold.
   • Charges: Itemised statement showing principal, interest, fees, collection commission, and legal costs.
   • Section 129 notice: Proof of delivery and date.
2. Apply the prescription test under the Prescription Act
   • Most unsecured consumer debts prescribe after 3 years of no payment, no written acknowledgement, and no service of summons.
   • Prescription runs longer for judgment debts and mortgage bonds, typically 30 years.
   • Any payment or written acknowledgement interrupts prescription. Do not make a “goodwill” payment until you verify prescription.
3. Check the numbers
   • Use the in duplum rule: while in default, interest and certain fees cannot exceed the unpaid principal as at date of default.
   • Compare posted interest rates and fees to the NCA and your agreement. Flag add-ons like “admin fees” or “collection commission” that exceed legal limits.
4. Respond with your position
   • If prescribed: Write that you dispute liability on prescription grounds and demand they cease collection and update credit bureaus.
   • If amounts are inflated: Dispute the calculation and insist on a corrected statement before any negotiation.
   • If valid: Consider negotiation, debt review, or a formal payment plan.

What can debt collectors legally do - and what is illegal?

Collectors can contact you to demand payment, negotiate, and, after proper notices, recommend legal action through the courts. They cannot harass, threaten arrest, disclose your debt to others, misrepresent authority, or attach your salary or assets without a court order.

• Permitted
  • Contacting you at reasonable times to seek payment.
  • Sending a lawful s 129 notice before litigation.
  • Negotiating payment plans or settlements.
  • Issuing summons and pursuing court orders if notices were properly delivered.
• Prohibited
  • Threatening arrest or jail for civil debt.
  • Calling repeatedly, using profane or abusive language, or contacting you at work after you say stop.
  • Disclosing your debt to your employer, colleagues, or family. They may ask third parties only for updated contact details without revealing the debt.
  • Misrepresenting they are sheriffs, court officials, or attorneys when they are not.
  • Adding unlawful or excessive fees or interest beyond NCA limits and in duplum.

How are fees, interest, and collection charges limited?

The NCA caps interest and fees and applies the in duplum rule, which limits recoverable interest and certain charges while you are in default to the unpaid principal at default. Collection commissions are regulated, and only reasonable, necessary legal costs on an attorney-and-client scale may follow a court order.

• In duplum rule (NCA s 103(5))
  • Once you are in default, the sum of interest and certain fees that accrue thereafter cannot exceed the outstanding principal at the date of default.
• Interest and fees
  • Credit agreements have category-specific maximum interest rates and fees set by the NCA Regulations.
  • Default administration charges and collection costs must be reasonable and actually incurred.
• Collection commission and legal costs
  • Debt Collectors Act and its Code regulate collection commission by registered collectors.
  • Attorneys’ costs require a court order and are subject to taxation. You can challenge excessive bills.
• Practical tip: Demand an itemised statement that separates principal, interest, service fees, default fees, collection commission, and legal fees with dates and rates.

What should you do when you receive a section 129 notice or summons?

Do not ignore it. Within the notice period, you can seek debt counselling, negotiate a payment plan, or prepare to defend the claim if the debt is prescribed, inflated, or otherwise incorrect.

1. Read the notice carefully
   • A valid s 129 notice informs you of default and options to refer the matter for debt counselling or alternative dispute resolution.
   • It must be delivered to the address or channel you selected in your credit agreement, and the sender must prove delivery.
2. Act within the timeframe
   • Contact a registered debt counsellor promptly if you need restructuring.
   • If you want to negotiate, propose a written plan backed by an updated budget.
3. If served with summons
   • Note the court and due date to enter appearance to defend, typically within 10 business days in the Magistrates’ Court.
   • Consult a lawyer or legal clinic to raise defences like prescription, defective notice, incorrect charges, or lack of authority.
4. Avoid default judgment
   • Ignoring summons can lead to judgment, adverse listing, and later attachment of salary or assets.

How do emoluments attachment orders and asset attachment work?

Salary or asset attachment requires a court order after due process. Emoluments attachment orders must be issued by a court with oversight and must be just, taking your circumstances into account; you can apply to vary or rescind unfair orders.

• Emoluments Attachment Orders (EAOs) - Magistrates’ Courts Act s 65J
  • Issued by a court after judgment, not by a collector unilaterally.
  • Must be just and equitable, with judicial oversight in your local jurisdiction after constitutional reforms.
  • You can apply to have the EAO rescinded or varied if it is unaffordable or was irregularly obtained.
• Attachment of movable assets
  • Requires judgment and a warrant of execution. Only the sheriff may attach goods.
  • Essential goods are protected to an extent. You can apply for a stay of execution or a structured payment plan.
• What to do if threatened
  • Ask for the case number, court, and copy of the order. Verify with the court or sheriff.
  • If there is no order, report the collector for misrepresentation.

How do you write effective letters to stop harassment or verify debt?

Use concise, firm letters that set communication limits and request documents. Avoid acknowledging the debt until you have verified prescription and charges.

Cease-and-desist and communication limits

Subject: Request to cease harassment and use written contact only

Dear [Collector name],

I refer to your calls about account [reference]. All future communication must be in writing only to [email/postal address]. Do not contact me by phone or at my workplace. Contact is permitted Monday to Friday, 09:00-17:00 only.

Your conduct must comply with the Debt Collectors Act Code of Conduct, the NCA, and POPIA. Any breach will be reported to the Council for Debt Collectors and the National Credit Regulator.

Regards,
[Your name]
[ID number]
[Date]

Debt verification and prescription request

Subject: Request for verification and prescription status - account [reference]

Dear [Collector name],

Please provide within 10 business days:

• Copy of the signed credit agreement and any amendments
• Full itemised statement from inception, showing principal, interest rates, fees, and payments
• Proof of mandate or deed of cession authorising you to collect
• Copy and proof of delivery of the section 129 notice
• Date of last payment or written acknowledgement by me

Until I receive and review these documents, I dispute liability and will not make any payment or acknowledgement. If the debt is prescribed, regard this as a formal prescription defence and cease all collection activity, including any credit bureau listings.

Regards,
[Your name]
[ID number]
[Date]

What options do you have to resolve unmanageable debt?

You can negotiate directly, enter debt review under the NCA, seek an administration order in the Magistrates’ Court for smaller, multi-debt situations, or apply for sequestration if you are insolvent with no viable repayment path. Choose the lightest option that fixes the problem and preserves your credit where possible.

• Direct negotiation
  • Ask for interest freezes or reductions and a realistic payment plan.
  • Seek a discounted settlement and ensure you receive a paid-up letter.
• Debt review (NCA s 86)
  • Debt counsellor restructures your debts into an affordable court-ordered plan.
  • Credit is restricted while under review; clearance certificate follows once obligations are met.
• Administration order (Magistrates’ Courts Act s 74)
  • Court appoints an administrator to collect a single monthly amount and distribute to creditors.
  • Suitable for consumers with multiple small debts and limited income. The court assesses eligibility.
• Sequestration (Insolvency Act)
  • High Court process to surrender estate when liabilities exceed assets and no sustainable repayment is possible.
  • Severe consequences for assets and status as an insolvent; consider only with legal advice.

How much do debt solutions cost and how long do they take in South Africa?

Costs vary by option and complexity. The table below gives typical ranges and timelines to help you plan.

Note: Debt counselling fees are set by NCR guidelines and may change. Get a written fee schedule from an NCR-registered debt counsellor before you start.

How do you lodge complaints against debt collectors in South Africa?

Complain in writing to the right regulator with your evidence. You can also complain to an ombud if the creditor is a bank or a credit provider with an industry ombud.

1. Identify the right body
   • Council for Debt Collectors: For registered debt collectors and collection agencies.
   • National Credit Regulator (NCR): For credit providers, debt counsellors, and NCA-related conduct.
   • Legal Practice Council: If the collector is an attorney or law firm.
   • Ombud for Banking Services: For bank-related credit disputes.
   • Credit Ombud: For non-bank credit and credit bureau listing disputes.
2. Prepare your complaint pack
   • Cease-and-desist letter, verification request, and any responses.
   • Call log, messages, and evidence of harassment or misrepresentation.
   • Credit agreement, statements, and calculation disputes if available.
3. Submit and follow up
   • Send by email or online forms as available. Keep reference numbers.
   • If you face ongoing harassment, notify SAPS if threats are made.

What deadlines and timelines should you watch?

Act within notice periods and keep prescription in mind. Quick action preserves your defences and options.

• Section 129 notice window: Engage or seek debt review promptly after receiving the notice.
• Summons: File a notice of intention to defend within the court-stated timeframe, commonly 10 business days in the Magistrates’ Court.
• Prescription: Generally 3 years for most unsecured debts; 30 years for judgment debt and mortgage bonds. Do not reset the clock by making small payments on a possibly prescribed debt.
• Credit bureau disputes: Bureaus must investigate disputes, usually within 20 business days under the NCA framework.

What are common traps consumers fall into with debt collectors?

Unwittingly reviving prescribed debt, agreeing to unaffordable payments, and paying inflated or unlawful fees are frequent pitfalls. Avoid verbal-only deals and insist on written terms.

• Making a R100 “goodwill” payment that interrupts prescription.
• Agreeing to a payment schedule you cannot sustain, leading to default and extra costs.
• Paying “settlement discounts” without a paid-up letter and bureau update in writing.
• Sharing ID scans and bank details with unverified collectors - confirm their registration and authority first.
• Ignoring s 129 notices and summons, resulting in judgment and attachment.

Who are the key South African authorities and what do they do?

The NCR oversees credit industry conduct under the NCA, the Council for Debt Collectors regulates registered collectors, and the Legal Practice Council regulates attorneys. Industry ombuds resolve specific credit and banking complaints.

• National Credit Regulator (NCR): Regulates credit providers and debt counsellors, enforces NCA rights like in duplum and s 129 compliance.
• Council for Debt Collectors: Registers and polices debt collectors under the Debt Collectors Act and Code of Conduct.
• Legal Practice Council: Regulates attorneys and law firms engaged in debt collection.
• Ombud for Banking Services and Credit Ombud: Independent dispute resolution bodies for bank and credit provider issues.

When should you hire a lawyer or expert?

Hire a lawyer if you receive summons, face an EAO or sheriff action, or have a strong prescription or billing defence. Use a registered debt counsellor if you need structured relief across multiple debts.

• Get a lawyer when
  • Served with summons or judgment is threatened.
  • You suspect prescription or defective s 129 notice.
  • Unlawful or excessive fees inflate the debt.
  • EAO or asset attachment is in play and you need rescission or variation.
• Get a debt counsellor when
  • You have multiple debts and cannot meet minimums.
  • You need a consolidated, court-backed plan that protects against legal action.
• Consider pro bono and clinics
  • University law clinics, Legal Aid SA, and community advice offices can assist if you cannot afford private counsel.

What practical steps should you take today to regain control?

Create a paper trail, verify the debt, and set your communication rules immediately. Then choose a resolution path based on your affordability and legal position.

1. Get organised
   • Pull your free annual credit report from each major bureau.
   • List each debt: creditor, collector, balance, last payment, status.
2. Control contact
   • Send the cease-and-desist letter and specify written-only communication.
3. Verify or dispute
   • Send the verification request and wait for documents.
   • If prescribed or inflated, dispute in writing and demand cessation.
4. Decide your strategy
   • If valid and affordable: negotiate a plan or settlement in writing.
   • If overwhelmed: consult a registered debt counsellor about debt review.
   • If sued: consult a lawyer immediately to defend or settle.
5. Protect your record
   • After payment or settlement, obtain a paid-up letter and confirmation that bureaus are updated.