THE COUNCIL FOR DEBT COLLECTORS IN SUPPORT OF ALL
In an address to the nation on Thursday evening (9 April), President Cyril Ramaphosa announced that the National Coronavirus Command Council, has decided to extend the nation-wide lockdown by a further two weeks beyond the initial 21 days until the end of April.
This in essence means that a large number of South Africans will be out of work for longer, leaving even less money for South Africans to meet their debt repayment requirements. The Council for Debt Collectors (CFDC) empathizes with South Africans and will interact with its members to discuss ways in which to ease the pressure of debt collection on consumers.
“We are in full support of Governments interventions to curb the spread of the Corona Virus (COVID-19) and will ensure that our members by all means abide by the regulations set aside for debt collection during this difficult time. We are committed to the fair recovery of debt for all consumers,” says Advocate Andries Cornelius- CEO – Council for Debt Collectors.
The CFDC would like to encourage South Africans to not fall into arrears with their debt and where possible, make the necessary arrangements to service their debt during this time. Notably, certain financial institutions are offering debt relief to their clients during this period and the CFDC encourages South Africans to look into these solutions available.
There has been a lot of confusion around debt collection activities during the national lockdown and the CFDC would like to communicate the following:
- Debt collection is not classified as an essential service
- Debt collectors are not allowed to operate from their offices
- Debt collectors are not allowed to knock on the doors of people owing money
While debt collectors are able to work from home, make phone calls and send emails to recover debt, they are still subject to the conditions and rules as set out in the Debt Collectors Act.
“We will remain operational, to make sure that debt collectors adhere to the Debt Collectors Act and Code of Conduct set by the CFDC; and encourage any consumer who has concerns or complaints to email Cynthia at firstname.lastname@example.org,” concludes Cornelius.