If you’ve defaulted on a credit agreement and have been “handed over” by your credit provider to a debt collector, the debt collector may charge you a fee of no more than the capital amount of your debt or R814, whichever is lower.
In addition to these debt collection fees, you will be liable for commission of 10 percent of each installment paid, to a maximum of R407 per installment.
Debt collectors vs attorneys:
Considering that there is no cap on the fees that attorneys can charge for debt collection, you’re better off being pursued by a debt collector than by an attorney.
Debt collection is a pre-legal process aimed at persuading you to pay. It is less costly – for you and the credit provider – than legal action instituted by an attorney.
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