What to do if Debt Collectors are harassing you

If you don't pay your debt, usually, after issuing you with a letter of demand (Section 129 Notice) a creditor may hand over your debt to a debt collector who will then be tasked with getting that money from you (recovering the debt).

If you want a debt collector to stop harassing you, you should consider going under debt review. When you go under debt review:

• Debt collection calls stop. 
• Your home and your car are legally protected. 
• You can reduce your monthly debt instalment.
  
  

The steps a debt collector or creditor has to follow (the debt collection process)

1. Courtesy call 

• This is not a required step, but a creditor will likely call you to let you know you’ve missed a payment.

Moku Tip: credit bureaus get updated information on your accounts each month, so your credit report will be updated with a late or missed payment usually by the following month. 

2. Receive a Section 129 Notice (letter of demand) explaining that you have defaulted on the payment of your account. This letter will usually include:

• The amount you are in arrears for your account. 
• The different options available to you if you are still unable to keep up with your payments. 
• If you’ve received a Section 129 Notice, take this seriously. This is the last step before legal proceedings can begin against you. 

4. If you do not make alternative arrangements to pay your account, the creditor or debt collector can approach a court for a judgment to be handed down. This can happen after 10 days of receiving the Section 129 Notice. 

5. If the judgement is granted, a Sheriff of the Court can approach you with a summons to appear in court. 

6.  After having received the summons, you can either accept the judgement and pay the outstanding fees due or you can defend it.

7. If you do not respond to the summons, the court can issue a warrant of execution to repossess your assets or initiate a garnishee order. 

What are debt collectors not allowed to do?

1. Harassment and Threats

Debt collectors are not allowed to use harassment or threats to pressure you into paying your debt. This includes:

• Aggressive Behavior: Debt collectors cannot use intimidation or abusive language. They must remain professional and respectful at all times.
• Threats of Violence: Any threats of physical harm or intimidation are illegal and should be reported immediately.
• Repeated Calls: Excessive phone calls, especially during unsocial hours, are considered harassment.

2. Misrepresentation

Debt collectors are not allowed to misrepresent themselves or the situation to you. This includes:

• False Claims: They cannot falsely claim that they are attorneys or government officials.
• Deceptive Practices: They must not deceive you into believing that legal action is imminent when it is not.

3. Contacting You at Inappropriate Times

Debt collectors must adhere to reasonable contact times:

• Business Hours Only: They should only contact you during business hours unless you have agreed otherwise.
• Avoiding Family and Friends: Debt collectors should not contact your family, friends, or employer about your debt.

Can you go to jail for not paying debt in South Africa?

The only time you can go to jail for unpaid debt is under the following circumstances:

• If you fail to pay child maintenance.
• You do not pay your SARS tax bill.
• You fail to appear in court after being issued with a summons.

What's the worst a debt collector can do?

While a debt collector cannot be the one to physically approach you and serve you with court documents, they can follow the process to get a judgment granted against you which could lead to:

• Repossession of your assets like your home or car.
• A garnishee order put in place to directly get funds to pay towards your outstanding debt from your salary. 

How Can Meerkat Help?

Navigating debt issues can be overwhelming, but you don’t have to face it alone. Meerkat offers expert assistance to help you manage and resolve your debt effectively. We do this with debt review, also known as debt counselling.

With debt review, we:

• Help you understand your financial position and create a manageable repayment plan.
• Consolidate your debts into a single, manageable monthly payment.
• We work on your behalf to negotiate with your creditors for lower interest rates.

When you partner with Meerkat, we act as a buffer between you and your creditors. This means:

• Dealing with Debt Collectors: We handle all communication with debt collectors, ensuring that your rights are protected and that you are not subjected to harassment.
• Legal Advice: Our team provides legal guidance to ensure that all actions taken are within the bounds of the law.

Our experienced professionals offer personalised support to guide you through the process:

• Financial Assessment: We conduct a thorough assessment of your financial situation to identify the best course of action.
• Customised Payment Plans: We create a tailored debt management plan that suits your unique needs and goals.
• Emotional Support: We understand that dealing with debt can be stressful. Our team is here to offer support and reassurance throughout the process.
  
  

Watch our CEO David O'Brien, explain more about the process:

Take the First Step Towards Financial Freedom

If you’re facing challenges with debt and need assistance, don’t wait for the situation to become more complicated. Contact Meerkat today to get the support you need. Our team is dedicated to helping you achieve financial stability and peace of mind.

Who is Meerkat?

MyMeerkat FSP is an authorised financial services provider (FSP 50979). Registered Debt Counsellor NCRDC 2613. We've been voted as one of The Top 10 Large Debt Counsellors in South Africa and we've helped thousands of South Africans successfully become debt-free, we can help you too!