Dealing with debt collectors can be daunting, but having a grasp of your rights and the boundaries within which they must operate can give you a sense of empowerment throughout the process. In South Africa, the debt collection industry is subject to regulation to ensure the protection of consumers. Let’s delve deeper into what debt collectors are permitted to do and what they are prohibited from doing:
What Debt Collectors Can Do:
1. Contact You Through Various Channels
Debt collectors are authorised to reach out to you via multiple communication channels, including phone calls, emails, SMS, and even WhatsApp messages. Their aim is to engage with you regarding the outstanding account and facilitate repayment arrangements.
2. Contact at Work
They are permitted to contact you on your work phone. However, it’s essential that they do so in a professional manner and refrain from causing disruption in your workplace.
3. Contact Friends or Family
In instances where they are unable to establish direct contact with you, debt collectors may resort to contacting your friends or family members. Nonetheless, they are obliged to respect the privacy and confidentiality of these communications.
4. Charge Reasonable Costs and Interest
Debt collectors have the authority to impose reasonable costs and interest on the outstanding debt. These charges are governed by the regulations stipulated in the Debt Collectors Act and the Magistrates Court Act.
5. Legal Action and Credit Bureau Listing
If deemed necessary, debt collectors can initiate legal proceedings against you to recover the debt. Additionally, they may list you as a bad payer on a credit bureau, which could have implications for your credit score.
What Debt Collectors Cannot Do:
1. Threaten You or Your Family
Debt collectors are strictly prohibited from resorting to threats or intimidation tactics against you or your family members. It is imperative that they treat you with respect and professionalism at all times.
2. Discuss the Account with Third Parties
Your employer, family members, or friends should not be involved in discussions regarding your debt. Debt collectors are obligated to maintain the confidentiality of your financial matters.
3. Rudeness or Aggressive Behavior
Communication with debt collectors should always be conducted courteously and professionally. Any instances of rudeness or aggressive behaviour are unacceptable.
4. Empty Threats
Debt collectors cannot make empty threats or intimidate you with actions they are unwilling or unable to pursue. For instance, they cannot threaten legal action if they do not intend to follow through.
It’s crucial to remember that as a consumer, you have rights. If you encounter any violations of these rules or feel harassed during the debt collection process, it’s advisable to seek legal advice and report the behaviour. By understanding the regulations governing debt collection, you can navigate this process more confidently and assertively.
