Debt collectors calling: what they can and cannot do to you

If debt collectors keep phoning, you may be wondering what they can actually do to you, and whether anything can make them stop. This page answers that from your side of the phone. It covers the legal limits on collectors in South Africa, how to check the person chasing you is properly registered, and the one step that can change their right to keep pursuing you.

What a debt collector actually does

A debt collector is a middleman: hired by whoever you owe, or a firm that has bought your old debt, with a single job, getting money out of you. Collectors usually appear once an account has fallen behind and been handed over. Their tools are calls, letters, texts and the occasional home visit. Most work on commission. They are not attorneys, court officials or police, and their role usually ends at persuading you to pay or arranging a payment plan. The heavier legal steps belong to lawyers and courts.

What powers a collector legally has

Collectors can demand payment, add regulated fees to your balance and, once a court has granted judgment against you, arrange for money to come off your salary or a sheriff to attach your goods. Everything else needs a court order. No collector can enter your home, seize your car or furniture, or have you arrested. Owing money is not a crime. Collectors are generally required to be registered with the Council for Debt Collectors, so ask for the registration number and check it against the council's online register. The register is public. Someone who refuses to give their number is a red flag.

You also do not have to absorb all this alone while upset on a call. You can compare registered debt counsellors and have someone on your side of the table from early on.

The worst a collector can legally do

The worst thing a collector can legally do to you is obtain a court judgment, which can then lead to a salary deduction or a sheriff selling your possessions. A collector cannot order that alone. Only a court can. A judgment can also sit on your credit record for years, where lenders can see it. Ask a debt counsellor or the credit bureau how long it stays on your record and what would remove it.

Harassment is different. Shouting, threats, pretending to be police and phoning your employer to shame you are not lawful collection tools. If it happens, note the date, time and what was said. You can complain to the council that registered them.

Can you refuse to deal with a debt collector?

Yes, you can insist a collector deals with you in writing, and you can ask them to prove the debt is yours before any talk of payment. You can reasonably ask them not to call you at work, and you can refuse to give card details over the phone.

Refusing does not erase the debt, though. The account can still move on to attorneys and court. One thing worth checking first: some older debts prescribe, meaning a court claim on them is no longer allowed. Whether yours has depends on the type of debt and on when you last paid or admitted it. Ask a counsellor first. If you were hoping a consolidation loan would settle everyone at once, many people in this position are declined for consolidation loans precisely because they are already behind.

What a collector may charge you

A collector in South Africa may only charge the fees allowed by a regulated tariff, never amounts invented on the spot. Because collection fees and interest get added to the balance, the figure demanded can be far higher than what you remember owing. Get it in writing. Ask for a statement that shows the original debt, the interest and the collection fees separately, and query anything inflated before you pay.

Collectors and counsellors are not the same thing

The difference is simple: a collector works for the company you owe, while a debt counsellor is registered by the National Credit Regulator to work for you. A counsellor can place you under debt review, where your credit agreements are restructured into one affordable monthly payment. Once your application is accepted, credit providers are in most cases barred from taking further legal steps to collect, and a collector told about the review, with your case number, should wind down the chasing. Give them your counsellor's details. Then let the counsellor take the calls.

One caution: accounts where a court case has already gone far may sit outside what debt review can reach, so raise that early. Once the phone goes quiet, you still need a plan for the debt itself, and a practical starting point for overcoming your debt helps there. If the ringing phone is the worst part of your day, start with a shortlist of registered counsellors and make one call that works for you rather than against you. Before you sign anything, ask each counsellor one question: is any of my accounts past the point where you can help? An honest answer early on saves nasty surprises later.

Photo by Kev Costello on Unsplash