With inflation and interest rates reaching record highs, millions of South Africans are struggling under the weight of debt—and facing aggressive, often illegal collection tactics from creditors. But according to legal expert Rynhardt de Lange, Director and Head of Legal at Milaw Legal, South Africans have powerful legal protections they can rely on.
According to a recent Experian report, nearly 10 million South Africans are now more than three months behind on their debt payments. Instead of receiving support, many are being bombarded by late-night calls, threats, and intimidation—despite the law being on their side.
“Creditors are misusing the system,” says de Lange. “Section 129 notices, which are meant to initiate a fair discussion, are often used to scare people instead.”
Cost of Living Crisis Fueling Debt Stress
South Africans have seen a 26.7% increase in overall inflation over the past five years. Essentials like:
- Food prices have jumped nearly 40%
- Electricity and household fuels have risen by 68.1%
- School fees have surged by 31.3%
- And the prime interest rate has risen from 7% to 10.75% since 2021
This economic pressure has led to a surge in disputes with creditors and a spike in debt collection complaints.
5 Legal Rights Every Consumer Should Know
De Lange urges consumers not to suffer in silence. Here are five critical legal protections available to those in debt:
- Section 129 Notice Must Come First
Creditors must issue a Section 129 notice and allow 20 days to respond before taking legal action. - Harassment is Illegal
Debt collectors may not call after hours, on Sundays, or use threats or intimidation. Victims can report violations to the National Credit Regulator (NCR) or the Debt Collectors Council. - You Can Negotiate
Consumers are entitled to request payment plans or debt mediation, and credit providers must give reasonable offers serious consideration. - Old Debts May Be Uncollectible
If a debt has had no payment or contact for three years, it may be legally prescribed—meaning you don’t have to pay it. - Collectors Must Be Registered and Show Proof
Consumers should always demand ID and debt documentation. If they can’t prove it, you don’t have to pay.
“Most South Africans aren’t avoiding debt—they just want fair treatment,” says de Lange. “The law is there to ensure dignity and protection, but too many collectors ignore it.”
Where to Get Help
Consumers who feel harassed or misled by credit providers can:
- File complaints with the National Credit Regulator (NCR)
- Contact the Consumer Tribunal
- Seek support from debt mediation services
As debt-related tensions grow, legal experts warn that financial recovery will depend not only on economic policy—but on ensuring consumer rights are respected.
“It’s time more people knew the law protects them. No one deserves to be bullied because they’re struggling,” de Lange concludes.
