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A Fin24 user is up in arms over a deduction from her salary without any notice. She writes:
Bayport Financial Services has just deducted money from my employer without any notice. I did not even receive a court summons, but there has been a deduction from my salary.
I am querying the account with them, but they have already made the deduction from my employer.
What procedure must I follow?
Friedl Kreuser, an attorney and manager at 6cents, a division of Summit Financial Partners, responds:
When credit providers take money straight from your salary to pay your debt, this is called a garnishee order.
There is a clear legal process that credit providers must follow before they can make use of this form of debt collecting:
• There must be a letter of demand, sent by registered mail, informing you of the amount in default and advising you to see a debt counsellor or other relevant institution to resolve the situation. They must be able to prove that you personally received the letter of demand, so if you say you didn’t, this is something you can insist on.
• Following the letter of demand, they would have to have issued summons against you. In this case they must be able to show a “return of service” from the sheriff to prove that the summons was validly delivered to you, or to an address provided by you in your original contract.
• If you did not respond to the summons, the court makes an order in your absence, so the credit provider is able to get default judgment, and subsequently the garnishee order, against you without any further interaction with you.
• The garnishee order is an order against your employer that forces them to pay the debt from your payslip.
If you want to challenge the garnishee order, you can request proof that the above process was followed correctly.
They should be able to provide copies of all the relevant documents. If you are unable to resolve the matter with them, you can refer it to the National Credit Regulator at 0860 627 627 or the Credit Ombud on 0861 662 837.
If the garnishee order is valid, you can still challenge the amount being deducted, if it is excessive. You can do this with the credit provider directly, or you can refer the query to the NCR or the Credit Ombud.
You can also log a debt check query at https://www.6cents.co.za/debt_check. It is not a free service, but our debt checkers are experts at identifying and challenging irregularities on garnishee orders.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.
Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
Bayport Financial Services has just deducted money from my employer without any notice. I did not even receive a court summons, but there has been a deduction from my salary.
I am querying the account with them, but they have already made the deduction from my employer.
What procedure must I follow?
Friedl Kreuser, an attorney and manager at 6cents, a division of Summit Financial Partners, responds:
When credit providers take money straight from your salary to pay your debt, this is called a garnishee order.
There is a clear legal process that credit providers must follow before they can make use of this form of debt collecting:
• There must be a letter of demand, sent by registered mail, informing you of the amount in default and advising you to see a debt counsellor or other relevant institution to resolve the situation. They must be able to prove that you personally received the letter of demand, so if you say you didn’t, this is something you can insist on.
• Following the letter of demand, they would have to have issued summons against you. In this case they must be able to show a “return of service” from the sheriff to prove that the summons was validly delivered to you, or to an address provided by you in your original contract.
• If you did not respond to the summons, the court makes an order in your absence, so the credit provider is able to get default judgment, and subsequently the garnishee order, against you without any further interaction with you.
• The garnishee order is an order against your employer that forces them to pay the debt from your payslip.
If you want to challenge the garnishee order, you can request proof that the above process was followed correctly.
They should be able to provide copies of all the relevant documents. If you are unable to resolve the matter with them, you can refer it to the National Credit Regulator at 0860 627 627 or the Credit Ombud on 0861 662 837.
If the garnishee order is valid, you can still challenge the amount being deducted, if it is excessive. You can do this with the credit provider directly, or you can refer the query to the NCR or the Credit Ombud.
You can also log a debt check query at https://www.6cents.co.za/debt_check. It is not a free service, but our debt checkers are experts at identifying and challenging irregularities on garnishee orders.
- Fin24
Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.
Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.
Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
