Debt Collectors Act, 1998 (Act No. 114 of 1998)15. Improper conduct by debt collectors |
| 1) | A debt collector may be found guilty by the Council of improper conduct if he or she, or a person for whom he or she is vicariously liable– |
| a) | uses force or threatens to use force against a debtor or any other person with whom the debtor has family ties or a familial or personal relationship; |
| b) | acts towards a debtor or any other person with whom the debtor has family ties or a familial or personal relationship, in an excessive or intimidating manner; |
| c) | makes use of fraudulent or misleading representations, including-- |
| i) | the simulation of legal procedures; |
| ii) | the use of simulated official or legal documents; |
| iii) | representation as a police officer, sheriff, officer of court or any similar person; or |
| iv) | the making of unjustified threats to enforce rights; |
| d) | is convicted of an offence of which violence, dishonesty, extortion or intimidation is an element; |
| e) | spreads or threatens to spread false information concerning the creditworthiness of a debtor; |
| f) | contravenes or fails to comply with a provision of the code of conduct contemplated in section 14; |
| g) | contravenes or fails to comply with any provision of this Act; or |
| h) | behaves or acts in any manner amounting to conduct, other than that mentioned in paragraphs (a), (b), (c), (d), (e), (f) or (g), which is improper in terms of a regulation. |
| 2) | The Council may in the prescribed manner investigate an allegation of improper conduct by a debt collector submitted to it in the prescribed manner or have it investigated in the prescribed manner by a committee of members of the Council or by a person or persons nominated by it: Provided that a debt collector whose conduct is being investigated shall be afforded the opportunity, either in person or through a legal representative, of refuting any allegations made against him or her. |
| 3) | If the Council finds a debt collector guilty of improper conduct, the Council may– |
| a) | withdraw his or her registration as a debt collector; |
| b) | suspend his or her registration for a specified period or pending the fulfillment of a condition or conditions; |
| c) | impose on him or her a fine not exceeding the prescribed amount, which fine shall be payable to the Council; |
| d) | reprimand him or her; |
| e) | recover from him or her the costs incurred by the Council in connection with the investigation; |
| f) | order him or her to reimburse any person who the Council is satisfied has been prejudiced by the conduct of such debt collector and to furnish the Council within a specified period with proof of such reimbursement; or |
| g) | combine any of the penalties under this subsection. |
| 4) | Any penalty imposed on a debt collector in terms of subsection (3)(a), (b), (c) or (g) may be suspended, either wholly or partially, by the Council on such conditions as the Council deems appropriate. |
| 5) | The Council may in its discretion assign any of the powers conferred on it under this section, except a power referred to in subsection (3)(a), to a committee nominated by it in terms of subsection (2), and may rescind or vary a decision of such a committee. |