Don't fall into the loan trap
NO ONE wants a garnishee order on their salary, but when a consumer fails to pay, service providers have a right to recover what is due to them.
However, those whose salaries have been garnisheed anticipate to pay the debt off one day.
They expect to get a reduced balance statement on request, not to be over-charged in legal fees or be issued a revolving garnishee order.
It's been 11 years since Cynthia Mntungwa started paying off a loan she took out from Saambou - before it went bankrupt and was taken over by African Bank.
She suspects that her garnishee order has been revived multiple times and wants this to cease.
Mntungwa said she was not notified about the order nor did she consent to have the garnishee order attached to her salary.
"Not that I would have disputed the debt, but it's only fair to know who else has a right to a portion of your salary."
She took out a loan for R15,000 and repaid R30,000 as of 2001, she said.
Mntungwa recently asked for a balance statement and received the shock of her life when the attorneys who were collecting debts on behalf of African Bank told her she still had an outstanding balance of R56,000.
"This is worse than a revolving credit."
African Bank said Mntungwa was at fault for having paid five times her initial loan amount.
A manager at the bank's consumer department, Sonette Botha, said Mntungwa had not honoured her original debt repayment agreement.
"We are sympathetic to the situation that Mntungwa finds herself in," Botha said.
African Bank only offered to reduce her debt by R5,000 after Consumer Line's intervention.