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Understanding Your Repossession Rights in South Africa

Written by Moku | 29-Jan-2024 09:32:21

Repossession can be a daunting experience, especially when you’re faced with the stress of losing valuable assets. In South Africa, it's essential to know your rights and understand the process that has to be followed before legal action can be taken against you.

If you’re dealing with repossession issues, Meerkat is here to assist you every step of the way.

How does repossession work in South Africa?

The repossession process/ repossession laws in South Africa

A credit lender (bank) can approach a court to have your vehicle repossessed, but only after:

  • You have received a Section 129 notice (Section 129 letter or letter of demand) after your account has been in arrears for 20 days or more. 
  • You have been served with a summons (legal document) by a Sheriff of the Court that gives you an opportunity to defend yourself. 
  • A Sheriff of the court delivers the original warrant of execution (original court order) stating that your vehicle can be repossessed.

Very important to note that a bank representative or debt collector cannot serve you with this summons or the repossession documents. It needs to be served by a Sheriff of the court. 

Moku tip: Be very careful about signing any forms that a debt collector or creditor asks you to sign when attempting to repossess your car. This is usually done to claim voluntary repossession from the consumer.

Can a car be repossessed without a court order?

No, it cannot. You must be served with a court order by a Sheriff of The Court in order for your car to repossessed. 

If you want to avoid car repossession in South Africa, and you're scared you're going to miss any of your payments, go under debt review today!

It's a legal process that ensures that your car and your home are legally protected from being repossessed!

How will they notify me?

If, after receiving a Section 129 Notice, you have not acted within 10 days, you will then be served with a summons by the Sheriff of the Court at your place of work or place of residence.

I can’t afford to pay – can I hand over my assets to make up for the repayments?

Yes. This is called voluntary surrender. This includes assets like vehicles and furniture that were bought under an instalment sale agreement.

Can they repossess my car under debt review?

No, one of the big advantages of being under the debt review process is that your assets like your car and your home cannot be repossessed. 
 
 

What do they do with my assets once I return them?

The credit provider has to sell these assets (usually at a public auction.)

How to protect your house from repossession?

Facing repossession can be overwhelming, but you don’t have to handle it alone. Meerkat offers expert support and guidance to help you protect your car and home from repossession issues effectively. Here’s how we can assist you:

Expert Advice and Guidance

Meerkat provides comprehensive advice tailored to your specific situation:

  • Understanding Your Rights: We help you understand your repossession rights and the legal protections available to you.
  • Strategic Planning: Our experts work with you to develop a plan to address your repossession issues and explore potential solutions.

Handling Communication with Creditors

Dealing with creditors can be stressful, but Meerkat can act as an intermediary:

  • Negotiation: We negotiate with creditors on your behalf to reach a fair resolution and prevent further repossession actions.
  • Legal Representation: If necessary, our team can provide legal representation to protect your interests and challenge unlawful repossession attempts.

PersonaliSed Debt Solutions

We offer tailored solutions to address your debt and repossession concerns:

  • Debt Counseling: Our counsellors provide guidance on managing your debt and creating a repayment plan that suits your financial situation.
  • Financial Solutions: We assist in finding financial solutions, including debt counselling or restructuring, to help you get back on track.

Watch this video with our Founder & CEO, David O'Brien as he explains more about the process.

 

 Get on top of your debt today!

Avoid the stressful repossession process and make sure your debt repayments are on track. Contact the team at Meerkat and we’ll provide immediate financial relief and protection from creditors. We enable you to pay off debt in an affordable way without losing assets. You pay one reduced installment and in many cases, we can reduce the interest rate meaning you pay less for your debt overall.

 

How long does it take to repossess a house in South Africa?

A bank will usually start legal proceedings and the repossession process for your house after three or more months missed payments.  

How many missed payments before repossession?

The bank or your credit lender can start the debt collections process for repossession of your car or home after 20 days of missing a payment on your loan. 

 

Who is Meerkat?

Meerkat is a financial wellness company that help South African consumers do MORE with their money. We help with debt repayment negotiations, provide affordable insurance and help you kickstart an emergency fund. We have been voted as one of the Top 5 National Debt Counsellors in South Africa!

Fill in the contact form on our website to receive a free callback from the Meerkat team today.