How to check a collector operates within the Debt Collectors Act

You've asked a debt collector to chase an overdue invoice, but you're unsure whether they're actually bound by the law they claim to follow. A collector operating outside the Debt Collectors Act isn't just cutting corners — they're potentially breaking it, and you could end up liable for their conduct. Knowing how to verify their legal standing is your first line of protection.

The Debt Collectors Act sets out rules for how debt collection must happen in South Africa. Not every collector is registered, and not every person calling themselves a debt collector is lawfully allowed to do so. Your job is to check before you instruct them, not after they've upset your customer or breached the law on your behalf.

Checking they're registered with the NCR

The National Credit Regulator (NCR) maintains a public register of debt collectors licensed to operate. This is your starting point. Ask for the collector's NCR registration number and verify it yourself on the NCR website — don't rely on them handing you a certificate. A legitimate debt collector will have no hesitation giving you this number. If they dodge the question, that's your answer.

When you search the register, check that the registration is active and covers the type of work you need done. Registration lapsed or suspended? Walk away. The NCR also publishes a list of debt collectors who have been warned or sanctioned. Spend five minutes there; it's worth it.

What to ask them directly

Once you've confirmed registration, ask them to explain how they comply with the Debt Collectors Act. You're not asking for a law lecture — you want to hear that they understand what they can and cannot do. A reputable collector will be comfortable with this conversation.

Specific things to confirm: Do they have written authority from you before they contact the debtor? Do they disclose their identity and your identity when they call or write? Do they avoid contacting a debtor at unreasonable hours or at their workplace unless it's a last resort? Ask how they handle a debtor's request to stop contact, and what records they keep. Their answers will tell you whether they know the rules or are just winging it.

Also ask directly: what training have they done on the Act? Have they ever been warned or investigated by the NCR? There's no shame in being investigated if it was resolved properly, but evasion is a red flag.

Checking references and conduct history

Don't skip this step. Ask for the names of three to five recent clients in your industry and actually phone them. Ask whether the collector followed the law, met deadlines, communicated clearly, and whether they'd use them again. Pay attention to whether the reference sounds relieved or reluctant — that matters.

Also ask the collector themselves: have they ever had a complaint against them with the NCR? Have they been taken to court by a debtor or challenged on their methods? A few complaints might be normal for any collector; lots of them or serious ones are not. Ask for any internal audit reports or compliance certificates they've done. This shows they take accountability seriously.

One more check: if they're part of a larger agency or attorney's firm, ask whether the parent firm is also registered or whether there's a delegated licence. Sometimes a collector operates under someone else's registration, and you need to know that the person actually collecting is covered.

Verifying a collector's legal standing takes an hour of your time upfront. It saves you from unknowingly hiring someone who might ignore the Debt Collectors Act, upset your customer, expose you to a counter-claim, or damage the relationship you're trying to preserve. When you're ready to instruct someone, you can find collectors who are transparent about their registration and track record on Strove — filtered, reviewed, and verified.