Court bid to stop salary attachment
Fin24

Court bid to stop salary attachment

2014-11-02 12:55

Johannesburg - A group of indebted farm workers are taking microlenders to court in a bid to stop them attaching their salaries, according to Sunday's Rapport newspaper.

Fourteen farm and seasonal workers want the use of emolument attachment orders declared unconstitutional. These type of orders are granted by a magistrate's court to force an employer to hand over part of a worker's salary directly to the creditor.

In papers before the court, it is alleged the respondents: 13 microlenders and their lawyers, Flemix & Associates, forged signatures on documents and got attachment orders in courts hundreds of kilometres from where the loans were granted.

The respondents have until December 15 to file answering papers.

The applicants want the court to order a change to the law governing emolument attachment orders, and a change to the National Credit Act.

They argue that having their salaries attached infringes on their right to property, as a salary is a form of property.

In one case cited in the court papers, Stellenbosch gardener Vusumuzi Xekethwana, 38, is paying 60% interest on a R4 600 debt.

A cleaner, Lisinda Bailey, 39, has nearly half her R4800 salary attached every month to pay off a R13 000 debt.

- Sapa.

Comments
  • Danie Strydom - 2014-11-02 13:06

    What is it that farm workers want? They want big salaries+ accomadation+ food+ transport and schooling for their children (by the way, the more they earn, the more they drink) and do nothing to earn it. They want banks, loan sharks ect.to give them money and not expect them to pay any money back.

      Sithembiso Buthelezi - 2014-11-02 14:40

      would love to know what u were drinking when u wrote this?

      Angia Samuels - 2014-11-02 15:15

      Its about farm workers standing up to their rights in terms of the National Credit Act and that of the Magistrate's Court Act. Not only for themselves but for all consumers across the board. Its also not so much a matter of not paying back the money that they borrowed but rather the way in which the EAO's were acquired. If the credit provider was doing a proper assessment as it should have done in terms of the Act,there would be no need for this. Instead credit providers exploit consumers such as farm workers and those who are not educated in terms of their rights and rip them off even more.

      Stephen AndKathy Whiteley - 2014-11-02 15:38

      Why do people buy on credit? If you can't afford it, wait until you can by saving what you would pay on HP payments. Kathy

      jonas.Bnet - 2014-11-02 15:49

      Danie you are so arrogant, perhaps repaying wasn't the problem perhaps it was the terms of the loans that weren't understood. You want to have property in SA drive a fancy car, have a maid, gardener, job but when government doubles your taxes will you then blame yourself or the government

      Danie Krynauw - 2014-11-05 10:29

      I am in the debtcollecting industry, if the lawyers did not comply with the rules and are guilty of improper conduct, they should take the hiding for it. The fact is that the collection process is a process of concent to a garnish order, therefore, debt get acknowledged by the debtor, if they do away with the process the credit providers will suffer even more as there will not be a way of doing proper collections.The influence on the economy will be very bad, punish the culprets and leave the process out of this, dishonesty should not be left alone.By punishing the process will not resolve the habit of people not complying with loan agreements,

      Danie Krynauw - 2014-11-05 10:29

      I am in the debtcollecting industry, if the lawyers did not comply with the rules and are guilty of improper conduct, they should take the hiding for it. The fact is that the collection process is a process of concent to a garnish order, therefore, debt get acknowledged by the debtor, if they do away with the process the credit providers will suffer even more as there will not be a way of doing proper collections.The influence on the economy will be very bad, punish the culprets and leave the process out of this, dishonesty should not be left alone.By punishing the process will not resolve the habit of people not complying with loan agreements,

  • Lorraine Eksteen - 2014-11-02 13:16

    Hoekom maak hulle dan skuld????

      Wim De Villiers - 2014-11-02 15:54

      Thomas...let op...ONGELETTERD...wat maak dit jou???

  • Marius Schoeman - 2014-11-02 13:17

    If you make a loan at a registered bank, you need a bank account in good standing from where on which a debit order is run monthly to repay the debt. These workers borrowed money but they don't want to pay it back as agreed. I am not condoning the amount of interest that the loan sharks are charging, I am just saying that a contract is between 2 parties that are in agreement. If this does get stopped, I also want to have this done on my loan and credit card.

  • Angia Samuels - 2014-11-02 13:27

    It is not so much a matter as consumers just incurring debts,but mostly a matter of credit providers not doing proper affordability assessments and not making provision for the rising cost in living that occurs on a daily basis. The firm mentioned in this article is well known for forging signatures on legal documentation that allows them to execute EAO's on consumers salaries and to take judgment against these consumers in a court seated outside their jurisdiction to enable consumers to not challenge the deduction in terms of Section 65J of the law.

      Jurie Nel - 2014-11-02 15:33

      Angia, that is a very serious allegation indeed. If you can substantiate it (as I believe you can, otherwise you should not have made it publicly), please consider approaching the court as a friend of the court in this matter. You will be doing the country a great service if you do.

      Angia Samuels - 2014-11-02 16:32

      @Jurie Nel. Its not an allegation but a fact Jurie. Feel free to contact Kimberley Court and find out what happened there. Also Barberton Court,Hennenman and so the list goes on... They have also been reported to the Nort West Law Society as majority of these debts have been bought by them from another company.

      Angia Samuels - 2014-11-02 16:38

      Furthermore Jurie. No-one is saying they should no collect debt owing to them. We are saying do it within the framework of the law by following the proper steps,rules & regulations.

      Angia Samuels - 2014-11-02 17:27

      I must also just state that it is unfortunate that only this firm is mentioned in the article,as there is many more firms and debt collectors making use of these improper methods.

  • tanz.naidoo - 2014-11-02 15:32

    This company, Flemix and Associates is notorious for garnishee fraud. They also faked my signature on a garnishee order and I took it up with their senior management, who also covered up. Eventually I referred the matter to the Credit Ombud and it was sorted out and yes their amounts were totally incorrect, they were demanding more than what I owed, basically they were abusing their garnishee powers to rob me for money. Obviously this money is going into someones pocket. Read about them on Hello Peter or just type their company name on google and see what comes up. Im surprised that nobody from this company has been arrested yet, because they are preying on helpless people and yes they do fake signatures on garnishee documents.

      Angia Samuels - 2014-11-02 17:11

      U did right by taking the matter to the credit ombud Tanz,as I know the deputy,Reana takes this type of matters very seriously.

      Trevor Marshall Samson - 2015-01-12 15:29

      You right Tanz, Flemix and Associates are notorious for these kind of behavior. I'm a Debt Counsellor and they(Flemix)over change some of my clients with fees that are not in terms of the law (NCA). I fought with them for a long time and eventually got refunds of more then R12000.00. Consumers must keep their "eyes" open to these kind of fees and firms.

  • DarrenCooper68 - 2014-11-02 15:33

    Do they expect money from business like they expect houses and being its from govt. It's just wrong. They must pay back what they owe. Perhaps borrow their possessions and then see if they understand the principle

  • Tjaart En Ethne Strydom - 2014-11-02 15:38

    That is , I suppose, is the very reason that African Bank went down the drain ,municipalities cannot pay Escom because consumers does not pay their bills. (Elecricity)

  • blade.stone.370 - 2014-11-02 17:14

    Maybe they must make it illegal to give stupid people loans ,if they don't understand the paperwork they don't get a loan

  • blade.stone.370 - 2014-11-02 17:14

    Maybe they must make it illegal to give stupid people loans ,if they don't understand the paperwork they don't get a loan

  • Angia Samuels - 2014-11-02 19:38

    Does anybody have more info on this case,such as what court it will take place in,case nr etc? I would love to assist on this matter with recent cases that has been successful in respect of this type of case. TIA

  • jumbo.lenny - 2014-11-03 10:37

    A sad way things are moving-even the loan sharks and the lawyers are in competition talk about a country that was once upon-atime

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