oa Comparative and International Law Journal of Southern Africa - The debt collection problem: can credit control offer a solution?
Current debt collection practices in South Africa face a number of problems. They cannot be solved by forcing debtors to pay what they owe. These problems did not arise from the abolition of the imprisonment sanction, but, rather, from the rise in the number of debtors, and from the majority of them being unable to meet their financial obligations. This enormous increase has impacted badly on court efficiency. Also, whether this increase in litigation has been of any value to the creditors concerned is debatable: many cases instituted were not completed, and the amounts actually recovered by the creditors did not bear much relation to the amounts for which they had sued. The second problem is that a vast number of debtors own very little, and are either unemployed or employed in the informal sector. If a person has no assets that can be sold, and no salary that can be subject to an emoluments attachment order, the debt-collection procedure becomes irrelevant. This article proposes improved control of the microlending industry.
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