PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Kurt Ellis
 
Comments: 18
Article views: 2100
 
 
Latest Badges:

 
View all Kurt Ellis's badges.
 

Debt Collectors - The Truth

13 March 2014, 11:59

There is a special circle of hell reserved for debt collectors. The vast majority of all people who are in debt did not intentionally choose not to pay their bills. They may have encountered a tough period in which paying Edgars ranked lower on their list of priorities than feeding their families. In 2009, I was one of these people (but that is a story for another time).

Yesterday, I received 4 calls from an Attorney looking for a Phillip Van Vuuren to pay his TV license. Before that, I was getting a call a week from this company looking for this man whom I have never heard of. So after politely asking them many times, to remove my number, which I have had for over seven years, from their data base, needless to say, I was not happy. So this is my revenge against ALL DEBT COLLECTORS. So why should you trust what I am saying? Apart from being able to do your own research to confirm what I am saying, and having worked in financial institutions for 14 years prior, In 2011, I started my own Call Centre but encountered tough times with campaigns and products to sell. So I was approached by a major bank regarding a debt collecting campaign. This is how it works:

Did you know that once a debt has not been paid for more than three years, it is referred to as being prescribed debt? Section10 of the Prescription Act reads as follows:

10. Extinction of debts by prescription.—(1) Subject to the provisions of this Chapter and of Chapter IV, a debt shall be extinguished by prescription after the lapse of the period which in terms of the relevant law applies in respect of the prescription of such debt.
(2) By the prescription of a principal debt a subsidiary debt which arose from such principal debt shall also be extinguished by prescription.
(3) Notwithstanding the provisions of subsections (1) and (2), payment by the debtor of a debt after it has been extinguished by prescription in terms of either of the said subsections, shall be regarded as payment of a debt.

Basically, what this means is that if you have gone a 3 year period without paying or acknowledging that debt, then the creditor has to write this debt off. You are no longer liable.

Now, what the creditors do in this case, is sell their debt book to third party debt collectors. For example, if Bank A has a list of clients with R5 million bad debt that has been prescribed, instead of writing that R5 million off, they will sell it to a debt collection company (like an attorney) for R1 million to make back some money. That attorney/call centre will then call the people on that debt book and harass, bully and intimidate the people to pay. What ever money they collect, they keep. It does not go back to Bank A. Reason being, Bank A wrote off the debt. This practice is unethical, which is why I rather let my business go under that to participate in this.

Please note, that certain debts take a longer number of years before the debt is prescribed. Bonds/Mortgages for example are 30 years (Section 11 of the Prescription Act clarifies all this)

However, the three year prescription period applies to most other debt. BUT, remember, you will become liable again for that debt should you make even a single payment and acknowledge that debt in any way, like signing a repayment agreement plan or agreeing to something telephonically. So do not do this under any circumstance. And they cannot blacklist you. It is illegal to do so.

So what you should do if you are getting harassed for prescribed debt? You have two options and you can do one, or both of them.

The first, and my personal favourite. Should you get a call from a debt collector, ask them to hold on for a second. Tell them you want to talk to them, but you need to just finish up something first. Then leave your phone one side. If possible, go back every few seconds and tell that person that you are almost done. Just 1 more second. But keep them on the line for as long as possible, before they hang up. You see, the biggest cost in running a call centre is the phone bill. I say, you run that bill up. Let them spend a R1000 calling you to try and collect R500 worth of debt. Put these vultures out of business.

The second, should you choose to go the more legal route, is inform the creditor that the debt has been prescribed. Inform them that you do not intend to sign anything or pay anything. Inform them that if they issue summons, they must do so at your current address and you will defend the summons based on prescription and ask for legal costs against them. Also inform them that listing prescribed debt on a credit bureau is specifically prohibited by the regulations to the National Credit Act and any attempt to list you will result in a defamation of character claim against them.

Enough is enough!

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.
 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
18 comments
Add your comment
Comment 0 characters remaining

Read more from our Users

Submitted by
Terrylin Backpackers
The cheque is in the post

"I hear you are in bond collections. What are the latest excuses people are coming up with these days? I've run out of ideas." Read more...

10 comments 3817 views
Submitted by
Meta
News in the digital age

How do you think that spreading your hate/bigotry and or intolerance helps anybody? Read more...

14 comments 1230 views
Submitted by
Brian Faul
How and why a Dictator is born

One needs to remember looking back in history these hard times is when a dictator is more likely to get born. It is during these hard times that a dictator gets voted into power. Read more...

10 comments 2015 views
Submitted by
Prenisha Naidoo
I will be proactive...

This letter is in response to articles on the death of baby Jamie Naidoo, We have the tendency to be reactive…we wait for something to happen, then suddenly we care, writes a News24 User. Read more...

2 comments 497 views
Submitted by
woadstress
Celebration

Make a list of at least ten things that you can celebrate, and write two or three reasons why you can celebrate those things or events. Read more...

1 comments 184 views
Submitted by
Eric de Castro
Last squeak of the year

 Read more...

14 comments 304 views

Jobs in Cape Town [change area]

Jobs in Western Cape region

Restaurant Manager

Western Cape
SET Recruitment Consultants
R20 000 - R30 000 Per Month

Area Manager - Retail

Western Cape
Evolve Personnel
R20 000 - R25 000 Per Month

upply Chain Manager

Western Cape
ZIMCO Group (PTY) Ltd
R30 000 - R40 000 Per Month

Property [change area]

Travel - Look, Book, Go!

Kalahari.com - shop online today

Grand Theft Auto 5

Now available on PS4, Xbox One and PC from R649. Buy now!

Festive gifts!

Check out our awesome range of festive gifts to make everyone’s wishes come true. Shop now!

Save on Samsung

Cameras, mobile phones, TVs, Tablets and more. While stocks last. Shop now!

Save up to R2200 on electronics! – As seen in the catalogue

Wishing for tech gadgets this festive? Save up to R2100 on hot tech products at kalahari.com. While stocks last. Shop now!

30% off the bestselling books

Save big on the most captivating reads of 2014. While stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on your iPhone Get News24 headlines on your iPhone.

SMS Alerts Get breaking news stories via SMS.

Blogs Your opinion on you, me and everyone.

Calais Website keywords automated by OpenCalais.

 
Interactive Advertising Bureau
 
© 2014 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.