Debtfree DIGI September 2016

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Constitutional Court Rules On Garnishee Orders Has a collections agents ever threatened you that should you fail to pay something today they will get a summons against us and send a sheriff to take our stuff from your home and get a garnishee order against your salary? Few things sound more scary for a consumer who is deep in debt and trying to keep their head afloat.
Some debt collectors cunningly ask consumers to sign a piece of paper to say that they have been past and chatted to them. Sometimes they say it is a vehicle inspection form. The consumer doesn’t realise the danger of signing a form without closely looking at it (or the second page) and soon they get told by their employer that money has to be deducted from their income each month due to a garnishee order. At Marikana many mine workers were getting little to no pay at the end of every month due to the various garnishee orders on their salaries for debts they had been neglecting to pay. It lead to protest and ultimately blood on the streets as the workers could not take it any longer. DAVID VS GOLIATH When a group of poor farm workers in the Western Cape were hit with a series of “garnishee” orders that left them penniless at the end of each month they decided to get help. A class action court case ensued with the banks and collections agents like the notorious Flemix on one side and the poorest of the country on the other with the help of the University of Stellenbosch Legal Aid Clinic. With the fate of the entire standard collections process on the line (as well as the longevity of those firms who collect solely through EAOs) the battle soon heated up. Civil rights groups grew interested and the country watched as a real David and Goliath situation unfolded. First Heard In the WESTERN Cape High Court The matter was heard in the Western Cape High Court where the ruling went the way of the consumer. The Court ordered that an EAO could not be granted without the proper oversight of a Magistrate or judge and that if naughty collections people tried to get EAOs somewhere else in the country rather than where the consumer works of lives then these were not valid. The Court went further and said that perhaps the process was unconstitutional. How Garnishee Orders Got a Bad Name Collections companies (the outside lawyers for the banks and credit providers) have a terrible reputation for “forum shopping” at courts around the country. This is where they find a friendly court that will normally just give them what they want without too many questions. Particularly a court where a clerk of the court (rather than a Magistrate) might just stamp the draft ‘garnishee’ order quickly in the back room somewhere. Some people even accuse some of the collections agents of giving bribes to these clerks to do so. The EAO applications to take part of a consumers salary would then receive a so called rubber stamp. No consideration would be given to if the consumer could actually afford to have that particular amount taken off their income each month and still cover their basic needs.
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