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Are you paying debt via garnishee orders?


Hundreds of thousands of consumers who are paying off old debt via garnishee orders against their salaries, can heave a sigh of relief after a judgment was made in the High Court in Cape Town last week. 

What the judgment means for creditors, including the micro lending industry, is that they and their attorneys will have to face the consequences of irregular or unlawful Orders and may have to repay the monies recovered in terms of such orders by their attorneys or other recovery agencies. 

Deputy Ombudsman Reana Steyn says the judgment was drawn from three points.

1. Reckless lending
2.There is a section in the Magistrates Court Act, which allows for these attachment orders to be issued, that is unconstitutional.
3. The Court also said if orders are issued out of the wrong Court it is unlawful.

Steyn says if consumers are paying off any debt in this way, they should immediately consider the validity of that order. 

The Credit Ombudsman's services are free of charge.