Debt collection cannot prejudice the ‘poorest of the poor’ anymore
CAPE TOWN – Summit Financial and the Stellenbosch Law Clinic, representing 10 of clients, on Friday won a ground-breaking judgement in the Cape High Court that will put a cap on the outstanding garnishee order amounts, and the unregulated and unfair way in which debt collection has prejudiced the “poorest of the poor”, in the past.
Summit chief executive Clark Gardner said that the judgement could dramatically reduce the debts of more than 1.5 million consumers with garnishee orders on the salaries, and up to 1.3m consumers that have paid their debts from emolument orders, in the last three years.
Gardner said consumers could, on average, achieve up to R5000 savings or refunds on legal fees and other costs on their amounts owing just on small debts, potentially releasing more than R4 billion back into the consumer economy.
Source: iol.co.za
