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Debt Collection South Africa:
we collect your outstanding debt
Do you have money owed to you by someone in South Africa? Outstanding claims on the other side of the world can be very troublesome. How can you collect your money if you are not on-site and lack local contacts?
Our collection agency assists you in recovering your claims abroad. We specialize in international debt collection and have a wide network in South Africa with the best local lawyers and legal experts. Together with them, we collect late payments in South Africa. Before you know it, you will have your money.
- Nationwide coverage in South Africa
- One dedicated English speaking contact
- Proven track record
- Tailor-made services for each case
- Expert advice and a transparent process
- 24/7 online access
Specialized in debt collection in South Africa
Dealing with a default debtor is always troublesome, especially when they are located abroad. Suddenly, you have to familiarize yourself with local trade practices and applicable laws and regulations. What can you do if your South African debtor doesn’t pay? Where can you file your claim?
A debt collection agency takes these worries off your hands. As specialists in international debt collection, we know the prevalent debt recovery procedures in almost every country. We also collaborate with local lawyers and attorneys who are well-versed in late payment and collection laws. Together with them, we ensure a swift and efficient recovery of your claim.
As a creditor, you will be in contact with one of our English-speaking debt collectors. This means you can communicate in English and won’t be inconvenienced by the time difference with South Africa. You can monitor the progress of the procedure through your own Online Cockpit.
Why Collection Company for your debt collection in South Africa?
- Global coverage
- One dedicated English speaking contact
- Experienced debt collection specialists with knowledge of South African legislation
- Broad network with local lawyers and bailiffs
- Seamless connection from extrajudicial to judicial action
- Effective local approach
- 24/7 tracking through your own Online Cockpit
Submit your claim now
Have you waited long enough for your money? Fill out the contact form and our debt collector will contact you as soon as possible to discuss your claim in South Africa.
The debt collection process in South Africa?
There are several procedures to collect outstanding debts. For instance, we can start an amicable debt collection process, where we try to collect your claim without involving the court. If that fails, it is possible to go to court to get your invoice paid. This is called a judicial debt collection.
Unlike many debt recovery agencies, Collection Company handles both extrajudicial and judicial debt collections. These procedures transition seamlessly within our services. Typically, we start with an extrajudicial or amicable collection process. Should your debtor fail to come up with the payment, then we can go to court. In this process, we work closely with South African lawyers and attorneys.
- Upload your invoice online
- We'll start your case
- We'll start with the debt collection process
- Together we decide the best strategy for collecting your debts
- Monitor the status of your case 24/7
- Any questions? Your personal accountmanager will answer them all!
- Your invoice is payed
Out-of-court debt collection
All efforts to collect your debt before taking legal action fall under extrajudicial procedure. This process is also known as amicable or out-of-court debt collection.
An extrajudicial debt collection process has several advantages. Firstly, it is generally the quickest and most efficient way to collect unpaid invoices. Additionally, your relationship with your customer is not immediately put under pressure. If your debtor has simply forgotten the invoice, they still have the chance to pay without being taken to court right away.
During the amicable debt recovery process, we send reminders and payment demands in writing to your debtor. But it doesn’t stop there: our debt collector contacts your debtor through phone calls and text messages to remind them of the outstanding debt.
In total, there are 16 contact moments with your debtor over a period of three weeks. We gradually increase the pressure. Eventually, we send your debtor a final notice. Your debtor has another 14 days to pay the outstanding debt. If that doesn’t happen, we go to court.
Fortunately, most debtors do not let it come to that. They choose to pay during the amicable debt collection process, thereby avoiding the costs associated with a legal procedure.
Legal procedures in South Africa
Unfortunately, there are also defaulters who dispute the claim or simply don’t respond. If your debtor fails to pay, there is no other option but to take legal actions. How the legal procedure unfolds depends on the amount of the debts owed.
Small claims
For claims under 20,000 South African Rand (ZAR), we can go to the Small Claims Court, a special court for small claims.
To initiate a procedure at the Small Claims Court, we must file your claim at the nearest Magistrate’s Court (the local court). We need to attach a copy of the agreement and the last reminder. The court clerk will then issue a summons, which will be delivered to your debtor by a sheriff.
A hearing will be scheduled where you can present your case. The Small Claims Court is not presided over by a judge. Instead, the procedure is led by a commissioner appointed by the court, often a lawyer or legal expert. The hearing is pretty informal, and it is not allowed to bring a lawyer.
After hearing both parties, the commissioner will render a judgment. It is not possible to appeal this decision.
If the judgment is in your favor, your debtor has 10 days to pay the claim. If they do not, the Magistrate’s Court will issue a payment order. The court sheriff can then enforce the order by seizing assets from your debtor.
Claims exceeding 20,000 ZAR
For claims exceeding 20,000 ZAR, a procedure at the Small Claims Court is not available. In that case, a civil procedure will follow at the District Magistrate’s Court (up to 200,000 ZAR) or Regional Magistrate’s Court (up to 400,000 ZAR). Claims over 400,000 ZAR are handled by the High Court.
The main difference from the small claims procedure is that the civil procedure is overseen by a judge, and the parties may be assisted by a lawyer. The hearing has a more formal character. The parties can appeal a judge’s decision.
Arbitration as an alternative to a Lawsuit
An alternative to a lawsuit is arbitration. Arbitration is a form of private justice and is a common method for resolving business disputes in South Africa.
The advantage of arbitration is that it is usually faster than a judicial procedure. Additionally, the parties can agree that the case will be handled behind closed doors.
Both parties must agree to resolve the matter through arbitration. This can also be agreed upon before a conflict arises, for example, by including an arbitration clause in the purchase agreement or general terms and conditions.
South Africa has signed the New York Convention. This means, among other things, that an arbitration award is binding. To enforce an arbitration award, we must present the award to the High Court. This court can then appoint a sheriff to enforce the award by seizing assets from your debtor.
Enforcement procedures in South Africa
The final step after a legal procedure is actually collecting the money. In South Africa, judgments are enforced by sheriffs. These are court officials who work for various courts. If your debtor does not pay on their own following a Small Claims Court decision, a (default) judgement, or an arbitration award, we can ask the court to seize assets from your debtor. The court will then instruct a sheriff to enforce the judgment, for example, by garnishing the debtor’s wages, withdrawing money from bank accounts, seizing goods, or auctioning real estate. The proceeds from these actions will be used to pay you as the creditor.
Interim remedies
To prevent your debtor from diverting assets during the legal process, we can request the court to take protective measures. This might include freezing a bank account or a garnishee order to temporarily seizing your debtor’s movable property. Once a judicial ruling is made, the attachment becomes enforceable. This means that you, as the creditor, will be paid from these seized assets.
Bankruptcy of your debtor
If your debtor’s debts exceed the value of their assets, we can file for bankruptcy. Failure to pay a debt is considered by the court as evidence that a debtor cannot meet their payment obligations, and thus grounds for a bankruptcy petition. We can file this petition with the High Court. Both companies and the estate (the assets) of your debtor can be declared bankrupt.
A bankruptcy petition is a last resort to recover the money. If your debtor is declared bankrupt, the company is closed (in the case of a business debtor) and all assets are sold. Most defaulters do not want this and choose to pay the outstanding debt when their bankruptcy is filed. Once we receive your money, we can withdraw the bankruptcy petition.
If your debtor is actually declared bankrupt, the court will appoint a trustee. They will inventory the assets of your debtor and sell them to pay the creditors.
More information?
Would you like to learn more about bankruptcy procedures in South Africa? Enter your details and one of our debt collectors will contact you as soon as possible.
Legal aspects of debt collection in South Africa
Do you have an outstanding claim in South Africa? From overdue salaries and unpaid invoices to damage claims, Collection Company ensures you get what you are entitled to.
We specialize in claims within the following legal areas:
- Construction law
- Leasing and renting
- Purchase and sale
- Employment law
- Agency agreement
- Transport
- Damages and unlawful conduct
We work directly for clients (private individuals and businesses) as well as intermediaries such as law firms and accounting firms.
How else can we assist you?
- Reliable advice on contracts and terms
- Credit information about companies in South-Africa
- Disputes including issues like Retention of Title and right of recourse
- Mediating in reaching private settlements and agreements
Submit your claim in South Africa
You can submit your claim directly to us via our debt collection registration form. Would you like to consult with a collection specialist first? Leave your details or call us at 070 – 762 0330.
Free advice on debt collection in South Africa
Submit your personal information and plan your free consult.
FAQ: Frequently Asked Questions about debt collection in South Africa
FAQ: What do we need for a debt collection in South Africa?
To support your claim, we would like to receive documents related to the case. This could include contracts, invoices, and payment reminders.
It often happens that these documents are no longer available. In such cases, we can support your claim with other evidence like email correspondence.
We kindly request (copies of) the following documents:
- Contracts or agreements, emails discussing the arrangements, a fax confirmation, etc.
- A summary of the arrangements made
- Invoices
- Reminders
- Terms and conditions
- Proof of delivery
FAQ: Is a retention of title clause valid in South Africa?
A retention of title clause is a provision in the purchase terms. It simply means that ownership transfers to the buyer only once the full purchase amount has been paid. Without a retention of title clause, ownership transfers to the buyer at the moment of delivery.
It is possible to agree on a retention of title clause in South Africa. In South Africa, such a clause is called a reservation of ownership clause. If your debtor does not pay, you can reclaim the delivered goods. In the event of your debtor’s bankruptcy, the trustee will return the delivered goods to you.
FAQ: Do I need a lawyer?
An attorney is not required. In a simplified procedure for the Small Claims Court, it is not even allowed to bring an attorney. For claims involving higher amounts, it may be wise to seek legal assistance from an attorney. Our collection agency collaborates with the best South African attorneys.
FAQ: What is the statute of limitations for claims in South Africa?
In South Africa, there is a general statute of limitations of three years for monetary claims. This period starts from the moment the money should have been paid. Once the period has expired, it is no longer possible to initiate legal proceedings to get your claim paid.
FAQ: Why choose Collection Company for your claims in South Africa?
Where many debt collection agencies in South Africa can only handle the out-of-court procedure, Collection Company can manage the entire collection process for you, from the amicable phase to the legal procedure. Additionally, we have local specialists in South Africa. Therefore, you don’t need to search for local lawyers and legal experts yourself, and you won’t be hindered by language barriers or time differences.
Why 40.000 customers tried our services
- The #1 collection company in the Netherlands and abroad
- Regional & local specialists
- Years of experience with international invoices
- Your own personal contact
- Extensive advice on the legal process
- Monitor the status of your case 24/7
Meet our specialized legal team
Joost Konings LLMLaw expert- May Leung LLMLaw expert
- Wesley Boeters LLMInterim lawyer
