Struggling with Debt? 5 Legal Protections You Can Rely On

As the cost of living rises, more South Africans are being bullied by unfair credit practices. Rynhardt de Lange shares five protections every consumer should know.

24 June 2025: With the cost of living climbing steadily, more and more South Africans are finding themselves struggling with debt, and instead of getting support, many are being pushed around by unfair and sometimes illegal debt collection tactics.

According to Experian, nearly 10 million South Africans are more than three months behind on their debt payments. Instead of understanding or help, many face aggressive calls, threats, and pressure to pay up, even when the debt shouldn’t be collected anymore.

Director and Head of Legal at Milaw Legal, Rynhardt de Lange, says creditor harassment remains a major issue in the debt industry. One of the most common tricks he sees is how Section 129 notices are misused.

“Section 129 notices are meant to open a conversation between the consumer and creditor before any legal action. But these days, they’re often sent like a final warning—meant to scare people instead of helping them figure out a way forward.”

He said consumers often deal with calls late at night, blackmail threats, and being pushed to pay debts that are too old to collect. South African laws protect consumers by limiting when collectors can call, requiring collectors to be registered, and banning the collection of old (prescribed) debts. But unfortunately, these rules are regularly ignored.

To make matters worse, financial pressure has been steadily increasing over the past few years. Since 2021, the prime interest rate climbed from 7% to 10.75%, while the cost of essentials like fuel, food, and housing surged sharply. Over the past five years, overall inflation rose by 26.7%, with food prices soaring by around 40%. The cost of electricity and household fuels saw the largest jump, increasing by 68.1%. Education expenses also rose significantly, with primary and secondary school fees up by 31.3%.

With this kind of financial pressure, it’s no surprise that disputes with creditors are rising. However, consumers have the right to stand up for themselves, de Lange says.

“In the end, most South Africans aren’t trying to dodge their debts—they just want a fair chance to get back on track without being bullied,” he said.

De Lange shares five key protections every South African should know when dealing with debt or credit providers:

• Creditors must follow the law before suing you: They have to send you a Section 129 notice and give you 20 days to respond before taking any legal action.
• Harassment is illegal: Collectors can’t call you after hours or on Sundays, and they can’t use threats or intimidation. If you’re being harassed, report it to the National Credit Regulator (NCR) or the Debt Collectors Council.
• You have the right to negotiate: You can ask for payment plans or apply for debt mediation, and creditors are required to seriously consider any reasonable offers you make.
• Old (prescribed) debt is not collectible: If a debt hasn’t had a payment or contact for three years or more, you can legally refuse to pay it.
• Collectors must be registered and prove the debt: Always ask for their ID and documentation proving you owe the debt. No proof means no payment.

“The National Credit Act was designed to protect consumers—to make sure lending is fair, affordable, and transparent. It also set up the National Credit Regulator and Consumer Tribunal to keep everyone in check. But too many creditors still ignore these rules; consumers need to know they have rights, and the law is on their side,” explains Rynhardt.

About Milaw Legal

Milaw Legal is a debt management company committed to empowering South Africans in their battle against debt. With over a decade of expertise in financial services, the organisation offers a range of high-calibre debt relief services tailored to meet each individual's unique needs, including debt review removal, judgment removal, and affordable distribution. Guided by values of integrity, empathy, and innovation, Milaw Legal provides personalised and comprehensive legal services, ensuring clients achieve financial stability and long-term success.