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Lexis® Practical Guidance: Recoveries and Debt Collection

Why Lexis® Practical Guidance: Recoveries and Debt Collection?

Get direct access to critical, up-to-date information and guidance that you can rely on.

Practical Guidance Recoveries and Debt Collection provides users with step-by-step guidance and practical aids that are needed to effectively deal with a collection matter.

Users are supported from the preliminary steps including placing a debtor in mora and issuing a letter of demand, until the finalisation of the matter, such as obtaining a judgment against the debtor, instituting a section 65 application and attaching property for execution.

Additional guidance is provided on how to obtain relief for the recovery of a debt in the least expensive manner possible as well as institute recovery proceedings in both the Magistrates' and High Courts of South Africa. Easily downloadable forms and customisable precedents are supplied with respective guidance notes, so that users know what to do, when to do it and how to do it.

Users have convenient online access to current Legislation and Case Law, as well as Guidance Notes, Practice Directives, Checklists, Forms and Precedents that are authored and updated by expert practitioners.

With Lexis® Practical Guidance Recoveries and Debt Collection you get:


Convenient online access to:
  • More than 30 Topic Overviews and 85 Guidance Notes
  • Over 50 Forms, Precedents and Checklists – ensuring not a single step is missed
  • Legislation & Case Law – access to relevant cases at the click of a button
  • Practice Directives – practical advice on how to interpret the rules of court
  • Other useful resources such as external websites and additional readings

Step-by-step guidance on:
  • The National Credit Act
  • Categories of debtors
  • Default judgement
  • Garnishee orders
  • Costs to consider
  • Initiating collection proceedings
  • Determining jurisdiction
  • Drafting and issuing warrants of execution
  • Interest rates
  • Interest rates

Guidance Notes

Useful reference material that offers direct access to relevant case law, legislation and commentary works, and practical know-how on specific areas within Recoveries and Debt Collection.
A few key guidance notes are outlined below. The full list can be viewed in the complete table of contents.



Registration Process for Role-players

The registration process for different role-players can be quite tricky as the requirements vary for each of them.

This guidance note provides easy access to downloadable application forms, details all registration requirements, the registration process and lists the fees that are applicable when registering as a:

  • Debt collector
  • Debt counsellor
  • Credit provider
  • Payment distribution agent

This guidance note can be used as a training tool for candidate attorneys, junior attorneys or attorneys who have not practised in this sector before.



Application for Debt Review

This guidance note provides:

  • The key legislation for the debt review process, as set out in section 86 (read together with regulations 24 to 26 of the National Credit Act 34 of 2005)
  • A listing of the steps that a consumer will take to lodge an application for debt review
  • The forms that are required for an application for debt review:
    - Application by consumer for debt review
    - Application by consumer to court for debt review
    - Application for the issuing of a clearance certificate


Reckless Credit

This guidance note provides:

  • Information outlining when credit is deemed to be reckless
  • Access to legislation and references to essential case law
  • A better understanding of the repercussions of recklessly providing a consumer with credit

This guidance note would appeal to the more experienced attorneys

Practical Aids

Precedents, checklists and forms that can be used to offer advice confidently and execute tasks accurately.
A few key resources are listed below. The full list can be viewed in the complete table of contents.



The following application forms are required when registering as a debt collector:

  • Form 1A: Application for registration as debt collector by an officer in the employ of a juristic person, a director of a company or a member of a close corporation
  • Form 1B: Application for registration as debt collector by a juristic person, a company or a close corporation
  • Form 1C: Application for registration as debt collector by a person other than an officer in the employ of a juristic person, a director of a company or a member of a close corporation

These forms distinguish between an officer in the employ of a juristic person, a director of a company or a member of a close corporation, a juristic person, a company or a close corporation and a person other than those listed above.



The following forms are required when registering as a credit provider and payment distribution agent:

  • Form 2 – Application form for registration as a credit provider in terms of section 40 of the National Credit Act 34 of 2005
  • Form 46 – Application form for registration as a payment distribution agent in terms of section 44a of the National Credit Act 34 of 2005

These are the official forms in terms of the National Credit Act. From this guidance note users will know exactly what information must be inserted and the supporting documents that need to accompany application.



The following is a precedent of an actual letter in terms of section 65:

  • Registered letter to debtor in terms of section 65

If this letter is not supplied in this format, a Magistrate may rule that the application is premature and dismiss the entire application. You will then have to start the section 65 process afresh.



The following is a precedent of a CCJ:

  • Certified court judgment (CCJ)
          - If this precedent is not supplied in this format, it will be rejected by the clerk of the court and request that you redraft it. This will cause further delay as it usually takes 2 – 3 weeks to be issued and will impact finalisation of the matter and hence the recovery of the debt due.
  • Notice of intention to tax a bill of costs in the High Court
  • Notice of set down for taxation in the Magistrates' Court
  • Notice of objection in terms of rule 70(3)(b) of the High Court

If these Notices are not served and filed in the correct format they may be deemed invalid. A new Notice will need to be drafted and filed, creating unwanted time delays.


Authors




Sean Barrett

LLB (University of KwaZulu-Natal, PMB)

Director at Woodhead Bigby Inc., practising in the commercial litigation department and specialising in High Court litigation with a particular emphasis on Banking and Credit Law. Sean has rights of appearance in the High Court.

Time is scarce and the law is ever changing. Keeping pace with the shifts is a job unto itself but, chances are, it is not your only job. 

Curated by top South African legal experts, LexisNexis® Practical Guidance™ helps you navigate dynamic legal terrain by delivering practical aids for your everyday concerns in one convenient platform. 

It saves you time and energy so you can focus on the expertise that only you have.


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