Debt Collector Charge Notice: Laflar Collections (PTY) Ltd.
Following the receipt of an initial ninety-nine (99) complaints, The Council for Debt Collectors charged Laflar Collections (PTY) Ltd. The Debt collector and staff were given an opportunity to defend a total of three hundred and twenty-three (323) charges.
The formal disciplinary inquiry commenced on 2 August 2021. The debt collector, however, did not to participate in the proceedings and remained absent until the finalisation of the matter.
The evidence of eighty-six (86) witnesses were led over a period of two months.
On 14 October 2021, the debt collector and some of its staff were convicted and the sentence was handed down on 20 October 2021.
The company and some staff were convicted on a combined total of one hundred and thirty-eight (138) charges and fined an amount of R1,207,500.00 in total.
The charges amongst others against the debt collector were as follows:
- Unprofessional conduct
- Excessive harassment
- Luring or enticing in order to obtain payment
- Ignoring the Council’s request for information and failing to comply with instruction(s) issued by the Council
- Claiming of legal fees to which they were not entitled
- Intimidating debtors to make payments
- Continued communication to the complainants/witnesses despite their attorneys being on records and informing them not to engage their clients further
- Claiming inflated amounts
- Threatening alleged debtors with legal action, but with no intention to carry out such a threat
- Misleading debtors regarding the identity of those dealing on behalf of the debt collecting company
- Threatening or humiliating an alleged debtor
It has come to our attention that the company instructing this specific debt collector is no longer making use of its services. A new company was registered with the Council and an initial investigation implies that the new company is using the same tactics as the old.
In light of this, an instruction has been communicated to the Head of the Legal Department of the Council to prosecute the complaints against the new debt collection entity as they are lodged, and not to wait for all the complaints to be received before instituting a disciplinary process.
Council for Debt Collectors
(Public Relations Department)