Why are South Africans battling to pay their Debts

2019-08-30T14:30:03+00:00August 20th, 2019|credit control, debt collection, ECCM|

Reports from Consumer Credit Agencies such as TransUnion South Africahas revealed that Consumer Demand for credit remains high. Outstanding balances are increasing to the previous year comparisons, regardless of the credit categories.  Borrowing Levels are likely driven by the current challenging economic conditions to assist with the day-to-day expenses, there are however still larger purchases being made across most South Africans. As the Household income growth appears to be weak it has been put increased strain on household finances during this volatile economic conditions.  This


How to avoid being served for debt

2019-08-30T13:40:43+00:00August 16th, 2019|commercial collections, consumer collections, debt collection, debt collection agencies, debt collection agency, debt collector, ECCM, medical collections, pre-collection|

The National Credit Act allows you to initiate legal proceedings as little as 20 days after you have defaulted on your Debt. To ensure you do not get Summonsed pay your monthly obligations, if you aren't able to do so ensure to make an arrangement with the Credit provider. There are however correct channels that have to be followed, such as:- Credit Providers have to notify consumers on the intent of legal proceedings prior to doing so, as per Section 129 of the National


What is Prescribed Debt

2019-08-30T13:14:17+00:00August 14th, 2019|consumer collections, debt collection agencies, debt collection agency, debt collector, ECCM|

It is essential to ensure that you have a Debt Recovery plan in place.  The Prescribed Debt Act is where old debt that has not been acknowledged, verbally or in writing, or paid for more than 3 years.  This is essentially debt that has been written off by credit providers. Even though there are a few ways, proven to be very difficult and not always successful there are a few ways to attempt at recovering this debt.  However the amendments to the National Credit


What happens to your Debt when you Pass Away

2019-08-30T12:08:24+00:00August 12th, 2019|credit control, debt collection, ECCM|

If you leave any debts behind when you die, it can eat up your assets that you had anticipated to leave to heirs. A lot of the time, some family members could be on the hook for your debt. Most of the people take out life insurance to not only make sure there is something left after they passed on for their loved ones but to also help deal with any financial expenses or debt. The debt you had will become the estate you


5 Things a Debt Collector can and Can’t do

2019-08-30T11:33:25+00:00August 9th, 2019|debt collection, debt collection agencies, debt collection agency, debt collector|

Five things Debt Collectors Can’t Do and Five things they can do. 5 Things Debt collectors Can’t do: Use Force or Threaten you or your family Serve false legal documentation Present themselves as an Officer of the Court, Sheriff and/or Police Officer Spread, or threaten to spread, any false information about your credit worthiness Charge more than the fees set down by the Council (They need to be registered with Debt Collectors Council) 5 Things Debt collectors CAN do: They can request that you


Myths about Debt Collection

2019-08-12T15:21:15+00:00August 7th, 2019|commercial collections, consumer collections, credit control, Credit Control Management, debt collection, debt collection agencies, debt collection agency, debt collector, ECCM, medical collections, pre-collection|

Statistics that have been compiled as recently as 2015 show that consumers in South Africa owe debt of up to 75% of their monthly income to their creditors. And more than half of 19 million active credit customers are in payment arrears of 3 months or more. With numbers like this you can be sure that debt collection is an industry that will keep on growing, which means it’s creating lots of new job and career opportunities for young South Africans. Already, there are over


The Debt Collection Act

2019-08-12T15:24:36+00:00August 5th, 2019|debt collection, debt collection agencies, debt collection agency, debt collector, ECCM|

The Debt Collection  Act is government legislation that offers consumer protection from illegal and unethical tactics by the debt collection services. The Council for Debt Collectors has, under section 14 of the Debt Collectors Act, 1998 (Act No. 114 of 1998), with the approval of the Minister of Justice and Constitutional development, adopt a code of conduct in the Schedule. Under the DCA, a debt collector is not permitted to do the following: Call you an unreasonable amount of times, before 8 am or


What is Debt Recovery?

2019-08-30T09:46:48+00:00August 1st, 2019|credit control, Credit Control Management, ECCM|

Debt Recovery and Debt Collection are similar terms with one small, but very important distinction. The difference is who is trying to retrieve a debt. Debt Collection is a creditor’s attempt to recover consumer credit and loans that have not been paid back by a customer. Debt recovery is when a loan- such as a credit card balance- continues to go unpaid, and a creditor hires a third party, known as a collection service, to focus on collecting the money. Its important because it is


What is a Credit Controller or Debt Collector’s Job Description

2019-08-30T09:47:05+00:00July 31st, 2019|debt collection agencies, debt collection agency, debt collector, ECCM|

Debt Collectors help their clients/ companies get paid. Their job is to track down people who owe money form overdue bills and negotiate required payments. They resolve conflicts, developing strategies to work with customers to resolve their debts and collect payment. Debt collectors may work closely with accounts receivable and legal personnel to identify customers with delinquent accounts and to determine what further actions to take. Debt collectors need to listen to their client, to understand why they are in the situation. By listening


What to do when a Collection Agency Proceeds with Legal Action

2019-08-12T14:41:34+00:00July 29th, 2019|credit control, Credit Control Management, debt collection agencies, ECCM|

Don’t ignore the any correspondence from a Collection Agency. If you fail to respond or show up in court, the judge grants a default judgement against you. In most cases, there will be a settlement conference or arbitration before the trial. This gives you and the Debt collection agency an opportunity to reach an agreement and avoid a trial and the legal fees that go along with it. The debt collector could pursue a summary judgement if none of the facts are disputed and win