How do I become a debt collector in South Africa?

How do I become a debt collector in South Africa?

An application for registration as a debt collector must be lodged with the Council on the prescribed form and must be accompanied by the registration fee and annual subscription fee prescribed by Regulation. No application will be finalized if the proof of payment is not attached.

What qualifications do I need to become a debt collector?

You do not always need particular qualifications to become a debt collector or credit controller, but employers will expect you to have a good standard of general education. A qualification in book-keeping or accounts may be advantageous.

How do I start a debt collector?

How to Start a Successful Collection Agency

  1. Understand State Requirements for Opening a Business.
  2. Learn About Debt Collection Laws.
  3. Plan Out Expenses & Purchase Necessary Equipment.
  4. Obtain Your Collection Agency Bond and Debt Collection License.

How much do Debt Collectors charge in South Africa?

The Debt Collectors Act limits the fees a debt collector can charge to no more than the capital amount of debt or R814, depending on which is lower. Added to that, the debtor can be charged 10% on each instalment paid, although this, too, is capped at R407 per instalment.

How much does a debt collector earn?

The average salary for a debt collector is R 6 240 per month in Gauteng.

Do debt collectors make good money?

The average salary of a debt collector was $13.79 per hour or $37,041 annually in August of 2019. This salary could be higher in some positions, if the company offers bonuses and/or commissions on the accounts you’re able to collect on.

Is it hard to be a debt collector?

It’s a grueling job. In a 2016 Consumer Financial Protection Bureau survey, debt collection agencies with more than 250 employees reported an average turnover rate of 75 percent to 100 percent.

Is Debt Collection profitable?

A debt collection business can be quite profitable and can operate from your home or office. The most important things needed to start a debt-collection business owner is obtaining customers and then finding the debtors. Aside from these, several additional items need consideration to start a debt collection business.

Who regulates debt collectors in South Africa?

The Council has been established by the Debt Collectors Act 114 of 1998 to regulate the occupation of debt collector.

Is collections a good career?

Do Debt Collectors Make Good Money? Debt collectors can earn good money depending on their experience and success in the field. The state you work in often impacts how much you earn as a debt collector even more.

Does debt expire in South Africa?

South Africa has different laws which specify prescription periods, for example, the Prescription Act says that contractual and delictual debts extinguish after three years from the date when it became payable (due).

Is it hard to work in collections?

Being a bill collector is stressful. Some people will scream and yell at you, call you names, hang up on you, and cry. Others will lie to you and tell you sob stories about why they cannot pay. This job can take a toll on your emotions, no matter how hard you try to keep them out of the equation.