What can a debt recovery company do if you don't pay your debts.Is debt recovery a simple process?

1. gentle reminders and letters — emails, SMS and calls asking for payment;
2. a formal letter of demand / Section 129 notice if the debt is a credit agreement (this is a statutory “fix this or we may sue” notice under the NCA);
3. hand the matter to a collection attorney or litigation agent if you don’t respond;
4. the creditor may issue a summons — if you don’t defend it, a default judgment can be entered;
5. once a judgment exists the creditor can enforce it (warrant of execution, garnishee/emoluments attachment order (EAO) on your salary, sale in execution of movable/immovable goods, or even sequestration/liquidation in serious cases).

Each step has requirements and timeframes under the law — collectors can’t skip the formalities.

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What debt collectors can legally do

• Contact you by phone, SMS, e-mail or letter to demand payment and negotiate.
• Ask for and accept payment, propose repayment plans, or agree settlements.
• If they (or the creditor) sue and obtain a judgment, enforce it through the sheriff (warrant of execution, EAOs, sale in execution, or sequestration procedures).

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What they may not legally do (common prohibited tactics)

• Threaten you with imprisonment for ordinary civil debt (that’s false and unlawful). They also may not threaten violence.
• Publicly disclose the details of your debt to everyone (they can only contact third parties to find your contact details, and even then must be discreet).
• Impersonate a court officer, forge documents, or use intimidation, obscene language or fraudulent papers.
• Charge whatever fees they like — collection fees are prescribed by law (there are tariffs/limits) and attorneys’ court fees follow published tariffs. If fees look excessive you can challenge them.

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Important legal protections and traps to watch for

• Section 129 (NCA) notice — for regulated credit agreements, the credit provider must give a written notice and at least the statutory time (usually 10 business days) before suing. If they skip that, you may have a defence.
• Debt review / debt counselling — if you’re over-indebted you can apply for debt review; that process can lead to a court-based restructuring and gives statutory protections (but it’s procedural and not an automatic “shield” in every situation). Don’t assume debt review is a magic bullet — follow the rules.
• Prescription (statute of limitations) — many ordinary debts prescribe after 3 years from the date the debt became due; some debts have longer periods (e.g. mortgage-bond or judgment debts can be 30 years). Important: if you acknowledge the debt or make a payment, you usually restart the prescription clock — collectors try to use that. Check the Prescription Act.
• Primary residence protections — selling a person’s home in execution is subject to judicial oversight (see the Constitutional Court cases like Jaftha and Gundwana). Courts will balance a creditor’s rights and your constitutional right to access adequate housing.

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If you’re contacted: a practical, prioritized checklist (do these in order)

1. Don’t panic — don’t admit liability on the phone. Verbal admissions can be used to interrupt prescription or restart the clock.
2. Ask for proof and ID in writing: ask the collector (in writing) for: their registration details, the original creditor’s name, a full written statement of account, and proof of authority to collect. Registered collectors must supply this. Keep the request and their reply.
3. Check it on paper: get the account statement, check dates, amounts, and whether the debt has prescribed. Compare the details to your own records.
4. Confirm the agency is legitimate: only registered/delegated agencies should collect; you can check with the Council for Debt Collectors and the National Credit Regulator. If they refuse identification or behave unlawfully, escalate.
5. If it’s legitimate and you can pay: negotiate a written, affordable plan (get the agreement in writing and keep proof of every payment). If you can’t, look into debt counselling or restructuring.
6. If you think it’s wrong or illegal: lodge disputes — with the collector (in writing), the credit bureau (if listed), and with regulators (CFDC, NCR, NCC). Keep everything.

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If you get a summons or a judgment

• Respond immediately. File a Notice of Intention to Defend / or consult a lawyer. Ignoring a summons makes default judgment more likely. Magistrates’ Court rules give strict time limits.
• If judgment was entered in your absence, you can apply to rescind (set aside) the default judgment — but timing and grounds matter (usually you must act promptly and show a bona fide defence or good cause). Get legal help or Legal Aid.
• If an EAO or warrant is served, you can ask the court to rescind or vary it if it leaves you and your dependants without sufficient means — the law requires the court to consider your maintenance needs. Don’t ignore sheriff notices.

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Where to report illegal conduct or get help (South Africa)

• Council for Debt Collectors (CFDC) — complaints, registration checks and forms.
• National Credit Regulator (NCR) — complaints about credit providers, debt counsellors, debt review and related matters.
• National Consumer Commission (NCC / dtic) — consumer-law complaints under the Consumer Protection Act.
• Credit bureaus (TransUnion, Experian, etc.) — lodge disputes about listings; bureaus must investigate within fixed timeframes.

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Is debt recovery “simple”?

No. It’s procedural, often slow, and facts matter. Whether collectors can sue, get judgment, garnish wages or sell assets depends on: the type of debt, whether statutory notices were sent (e.g. s129), whether the debt has prescribed, whether you raise a defence or enter debt review, and on judicial discretion (especially where a home is involved). Collectors will often use aggressive language to get payment quickly — but legality is not the same as pressure.

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Quick dos & don’ts — the executive summary

Do:

• Ask for identification and written proof.
• Keep a written log (dates/times/what was said).
• Check credit reports and the prescription date.
• Get professional help (debt counsellor, attorney, Legal Aid) if summons arrives.

Don’t:

• Admit you owe anything on the phone.
• Pay into an unknown account without verifying who you are paying.
• Ignore court papers.

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Useful official references (short list)

• Debt Collectors Act & regulations (registration, code of conduct).
• National Credit Act (Section 129 and debt-review procedures).
• Prescription Act (time limits for debts).
• Justice Dept — Emoluments Attachment Orders and enforcement basics.

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Not legal advice. This is general information based on South African law and guidance sources — if you have a real notice, summons or enforcement action against you, get a lawyer or contact Legal Aid / a registered debt counsellor right away.

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Lake Properties Pro-Tip: If a collector calls, ask them, calmly and firmly, to put their identity and claim in writing (including proof they’re registered) — then stop the call, check your records, and only deal with the matter in writing. That one step often stops pressure tactics and gives you time to make a smart plan.