HOW TO PUT THE BRAKES ON VEHICLE REPOSSESSION?

HOW TO PUT THE BRAKES ON VEHICLE REPOSSESSION?

Vehicle repossession can happen when you are still paying off your car, but are unable to come up with the money that you owe the bank or loan company. The creditors might then follow a legal process to take the car back from you in order to cover their costs. However, even in this case, you still have rights according to the laws of South Africa.

Times are tough. If you have found yourself drowning in debt, you might be facing the threat of vehicle repossession.

Here are some of your key questions about this matter which Duvenage Attorneys answers:

What should I do if someone is threatening to repossess my vehicle?

Do not panic. Simple consult our attorneys for assistance before taking any dramatic action. The process for vehicle repossession is very complicated and you need a professional to guide you through it.

Am I legally forced to sign documents handed to me by a debt collector?

Be very careful if a debt collector comes to you with their company’s forms. This is not a legal process as they are trying to force you into voluntary surrender and you do not have to agree to this.

How many months behind with payment do I have to be, before my car might be repossessed?

The National Credit Act provides that, any creditor can send you a Section 129 letter of demand, if your account is 20 days or more in arrears. They can start the collection process after 1 default. Thereafter the process is initiated with a Section 123 letter of demand, followed up with a summons and finalized at court resulting in a legally enforceable court order which authorizes the repossession via a warrant of execution. These documents would have to be delivered to you via Sheriff of the Court.

Be that as it may, that is why it is very important to know that if you are presented with documents threatening vehicle repossession, you contact one of our legal advisors to check if these are legally valid. Our professionals can guide you in ensuring that the process of vehicle repossession is carried out correctly according to the law.

For more information, kindly contact Duvenage Attorneys and we will gladly assist you.