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Question
Posted by: Tugs | 2004/10/21

Listed after Company bought debtors book.

I am posting this for the second time and Don't tell me to go to my manager.

Can someone please explain the last bit about debt being extinguished. Please read below.

Question: If a company buys off a retail credit book can they list you without informing you that you have arrears due ?

Answer:
When a creditor sells a book debt to company X ,the creditor cedes his rights against the debtor to company X , the effect is that company X steps into the shoes of the creditor and whatever claims could have been enforced by the creditor against the debtor can now be enforced by company X .Under the common law the creditor or company X (if the creditor has ceded his rights against the debtor)may provide default information to a credit bureau without informing the debtor.The issue of supplying the debtor's default information to a credit bureau without the debtor's knowledge is a privacy issue and under common law there is only liabilty for an unlawful and intentional interference with the right to privacy . As the supplying of default information to a credit bureau is not an unlawful act and also in the public interest there would be no liabilty under the common law .It should however be noted , that the South African Law Commission is in the process of formulating data privacy legislation which will require a creditor or a company buying the debt from the creditor to notify the debtor prior to supplying default information on that debtor to a credit bureau .Also the Credit Bureau Association Code of Conduct requires a creditor to notify a debtor prior to supplying default information to a credit bureau on that debtor , this duty will pass to the company that buys the debt .Further it should be stated that a debt is extinguished through prescription or the passage of time , normally prescription runs for three years from the date that the debt became due , if a debt has been extinguished by prescription neither the creditor nor the company buying the debt can supply information to a credit bureau about the extinguished debt and the sale of the debt does not interrupt the running of prescription .The three year prescription period does not apply to judgment debts .
Date: 11/10/2004

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Our expert says:
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Dear Tugs

I am not an expert on this issue. My topic is financial pshychology. Maybe you need to discuss this issue with a laywer friend.

Regards

The information provided does not constitute a diagnosis of your condition. You should consult a medical practitioner or other appropriate health care professional for a physical exmanication, diagnosis and formal advice. Health24 and the expert accept no responsibility or liability for any damage or personal harm you may suffer resulting from making use of this content.

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