A common problem that many South Africans deal with is debt. Unfortunately, there are occasions when events beyond our control cause us to accumulate debt that we are unable to pay back. Debtors may occasionally be given some respite by having their debts forgiven. But when will South Africa’s debt be forgiven? Let’s examine the timeline and other pertinent issues in more detail.
Debts do not expire after a predetermined period of time in South Africa because there is no statute of limitations on debt. The debt will consequently remain on your credit report until it is fully paid, and creditors are free to demand payment at any time. Your credit score and future ability to obtain credit may suffer as a result of this.
You can contact the Credit Ombud if you think a debt collection company is behaving unjustly. Investigating complaints against credit issuers and credit bureaus is the responsibility of the Credit Ombud. You can get in touch with them by calling their toll-free number or visiting their website.
It can be difficult to deal with a nasty collection agency, but it’s crucial to remain composed and forceful. Try to maintain track of all correspondence, including any threatening or abusive language used by the collection agency. If the person you are working with seems unreasonable, you can also ask to talk to a manager or supervisor. You can contact the Credit Ombud if the conduct continues.
You have the right to request proof of the debt if you have been contacted by a debt collection agency and are unsure whether the debt is real. This can be any paperwork that demonstrates how the debt has been calculated, such as a copy of the original credit agreement. As unregistered agencies are not allowed to collect debts, you should also confirm that the debt collection agency is registered with the Council for Debt Collectors.
In conclusion, debts do not automatically disappear after a set period of time in South Africa, nor is debt write-off an easy process. However, there are measures you may do to safeguard yourself against unjust treatment by debt collection companies, such as being aware of your rights, maintaining a record of communications, and, if necessary, requesting assistance from the Credit Ombud.
Old debts that are no longer legally enforceable but are nonetheless retained by debt collectors who demand payment from the debtor are known as zombie debts. The statute of limitations, which is the time period under law within which a creditor may file a lawsuit to collect a debt, has frequently passed for many of these loans. However, debt collectors could still get in touch with the debtor and make an effort to get paid, frequently employing aggressive methods that might be against the law.
Yes, it is possible to sell debt to a third party through a procedure known as debt selling or debt purchasing. The first creditor in this scenario sells the debt to the debt buyer, who then takes over as the new creditor. The debt buyer can then make an effort to get the debtor to pay. But the debt buyer might provide a settlement that is less than what is owed if they can buy the debt for less money than the debtor owes.