If you buy on credit, the creditor usually remains the owner of the things you have bought until you have finished paying all the instalments.

This means that if you can't pay your monthly instalments, the creditor can repossess the items in question.

Unless the creditor has a court order, they can only repossess the item if they have your permission (this is called "voluntary surrender").

If the creditor wants to force you to return the items, then they will need a court order. Before they can get this order, the creditor must send a registered letter to you warning you that the payments are overdue and that the outstanding amount must be paid within 30 days. If you have previously fallen behind in your payments and received a letter of demand, and you fall behind again, the creditor will send a letter of demand giving you 14 days to pay the outstanding instalments. If you still do not pay, then the seller can get a court order to repossess the goods.

If you are presented with a court summons, you will have to enter a written plea at the court, or file an opposing affidavit, explaining why you have not paid the amount (for example, the creditor may be claiming more from you than you actually owe). Matters are usually settled without a trial, but if the matter is not settled and you want to go to court to defend yourself, you need to file a Notice of Intention to Defend. If the matter goes to trial and you do not defend yourself or if the court thinks that you are not justified, the court can issue an order allowing the creditor to reclaim the goods.

The Sheriff of the court is responsible for repossessing the goods. This official will show you the court order and can then take the goods away. If the sheriff has a court order, then you (or anyone else staying in the house at the time) must allow them into the house to take the goods away.

Sometimes, the creditor will not want the goods back and will issue a summons against you to get the money back. In this case, the creditor will have to explain why they can't reclaim the goods.

Will the instalments you have already paid be refunded if the goods are repossessed? The value of the goods is likely to have diminished since you first bought them because they are no longer brand new. Depending on the value of the repossessed goods, you may get a refund (if the value of the goods plus the amount you have already paid is more than what you originally owed, then you will be paid the difference). But if the goods are worth less then the amount that you still owe, then you will still owe the creditor money.

If someone (like a debt recovery agent) has been sent to claim a debt from you and has behaved inappropriately, you can lodge a complaint with the Council for Debt Collectors (all debt collectors must be registered with the council).

The Council for Debt Collectors’ contact details:
PO Box/Posbus 836, Silverton, Pretoria, 0127
West Wing - Ground Floor, Rentmeester Park, 74 Watermeyer Street , Val de Grace, Pretoria
Fax: 012 804 0744
Tel: 012 804 9808
info@debtcol-council.co.za