What happens in a collections process
Collections follow a predictable sequence, and each stage adds cost. Knowing the sequence tells you how much time you have and, more usefully, which stage you are currently at.
It begins internally: reminders, calls and letters from the credit provider itself. This is the cheapest stage to resolve and the one where an arrangement is easiest to obtain.
Then the account is handed to an external collections agency or sold. Collection costs are added, and the tone changes — but the underlying debt and your rights do not.
Then a section 129 notice, which must be sent before legal proceedings and which offers you defined alternatives.
Then summons and, if undefended, judgment. Legal costs are added and a judgment is listed against you. After judgment a creditor can pursue an emoluments attachment order or a warrant of execution.
At every stage an arrangement is still possible, and at every stage it costs less than the next one. The debt does not improve by being ignored.
Related
Sources and last checked
- National Credit Act 34 of 2005 and its regulations — Government, as at 10 August 2026.
Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.