An application for registration as a debt collector must be submitted to the Council on the required form, along with the registration fee and yearly subscription cost prescribed by Regulation. No application will be processed until evidence of payment is included. In the event that his or her application is denied, the yearly subscription money will be repaid, but the registration fee will be forfeited. If the subscription price is not paid when the registration application is submitted, the registration will be suspended.
The total fees (registration fee and yearly subscription price due) plus VAT are as follows:
- R 3 450.00 for a business or close corporation;
- R 1380.00 for each director or member of the corporation or close corporation.
- R 920.00 for each executive of the firm or related entity participating in debt collection.
- R 920.00 in the case of an individual.
In the event of a transfer, the fee is R 115.00.
NOTICE: The following yearly fees are due on an annual basis:
- R 1 725 in the case of a corporation or close corporation;
- R 690.00 for each director or member of the corporation or close corporation.
- R 460.00 for each executive of the firm or related entity participating in debt collection.
- In the case of a natural person, R 460.00.
In the event of a transfer, the fee is R 115.00.
A juristic person, firm, or close corporation must utilise Form 1B to register as a debt collector.
An official in the employ of a juristic person, a director of a firm, or a member of a close corporation must utilise Form 1A to register as a debt collector.
A person other than an official in the service of a juristic person, a director of a firm, or a member of a close corporation must utilise Form 1C to register as a debt collector. (Sole proprietorships and partnerships must use this form.)
- A copy of the applicant’s identity document; • A letter from the bank declaring that a trust account has been formed in accordance with section 20(1) of the Debt Collectors Act, 1998 (Act 114 of 1998); • A letter from an auditor in respect of the Trust Account.
- Proof of payment of necessary registration and yearly subscription costs. When registering a new company or a close corporation, the following documents must be provided to the application:
- CM 29 OR COR 14.3 in the case of a Corporation; or • CK 1 or CK 2 in the case of Close Corporations.
What credentials are required to work as a debt collector?
To operate as a debt collector, most businesses demand a bachelor’s degree. You can earn a bachelor’s degree in a field such as business, finance, or accounting. Some students study communications because it can help them discover and contact individuals who owe them money.
Is it lucrative to operate a collecting agency?
A debt collecting business may be very successful and run from the comfort of your own home or office. Obtaining customers and then locating debtors are the two most crucial steps in starting a debt collecting agency. Aside from this, numerous other factors must be considered while starting a debt collecting service.
