NEW DEBT COLLECTION REGULATIONS IN SOUTH AFRICA: WHAT BUSINESSES NEED TO KNOW IN 2025

Scenario example:

A small construction firm finishes a project worth R250,000. Months later, the client still hasn’t paid. When the business considers legal action, they discover that debt collection rules have changed, making the process more complex if not fully compliant.

Sound familiar? Many South African businesses are facing the same challenge in 2025.

Legal Framework

Debt collection in South Africa is governed by the National Credit Act (NCA) and enforced by the National Credit Regulator (NCR). In 2025, compliance requirements have been strengthened.

Key obligations include:

• Correct calculation of interest and collection fees.

• Clear and lawful communication with debtors.

• Proper record-keeping for all debtor interactions.

Remedies for Businesses

• Issue a Letter of Demand before litigation.

• Use the Small Claims Court for matters under the monetary threshold.

• Pursue larger or complex matters in civil court.

• Partner with legal experts to ensure compliance and improve recovery rates.

Conclusion

Debt recovery in 2025 requires both speed and compliance. Businesses can no longer afford to risk unenforceable claims or reputational damage.

📩 For legal guidance on debt recovery, contact us at info@lbwinc.co.za

By LBW Candidate Attorney

While every reasonable effort is taken to ensure the accuracy and soundness of this article, neither the writer nor LBW shall bear responsibility for consequences of actions taken based on this content. The article is for informational purposes only.