According to debt collection laws in South Africa, creditors are obliged to talk to a debt counsellor while you are under Debt Review. They cannot legally reach out to the individual.
So what happens if a creditor does try to contact the person?
Debt collection laws in South Africa
First things first, let’s look at what Debt Review is.
In a nutshell, Debt Review is a process that you take to get rid of debt. It’s a method to help those who are over-indebted (where the amount to pay off any monthly debt and interest is more than the income) and comes with protection from the National Credit Act.
It is a way to consolidate debt into one payment that you make rather than worrying about numerous payments and it comes with the support of a debt counsellor who is on your side to help you find freedom from debt as smoothly as possible without turning your life upside down.
Why are they trying to hassle you for payment while you’re under Debt Review?
Sometimes creditors will try and hassle you for your money directly. It’s important to know that they might be calling you because they are not aware that you are under the protection of the National Credit Act yet and are calling you to make payment on credit owed.
What to do if a creditor calls looking for money?
So the first step to take is to inform your creditor that you have either applied for or are already under Debt Review in terms of section 86 of the National Credit Act.
This will let them know that you are under the protection of the National Credit Act and that you are paying off your debt through an accredited debt counselling organisation.
After this, provide them with the contact details of your debt counsellor. Your debt counsellor becomes the point of contact between you and your creditor, so if a creditor calls, guide them to the right channel.
Your debt counsellor will be able to communicate with the creditor and resolve any crossed lines of communication.
From there, show them your Debt Review protection certificate or NDA receipt. Your debt counsellor will have given you one. This will be enough proof to the creditor that you are in fact under Debt Review and are protected against their calls.
Three steps to take if a creditor harasses you
So in conclusion, if a creditor calls while you are under Debt Review:
- Inform your creditor that you have either applied for or are already under Debt Review in terms of section 86 of the National Credit Act.
- Provide them with the contact details of your debt counsellor.
- Show them your Debt Review protection certificate or NDA receipt (your debt counsellor will have given you one).
Easy as 1.2.3 and they’ll be directed to the correct channel and will speak to your debt counsellor who will act as the contact point for you.