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Concourt clamps down on garnishee orders
13 September 2016
JOHANNESBURG – The Constitutional Court has ruled that aspects of the enforcement of garnishee orders are unconstitutional.
With immediate effect, no garnishee order – also known as emolument attachment orders – can be issued, without oversight by a magistrate.
JOHANNESBURG – The Constitutional Court has ruled that aspects of the enforcement of garnishee orders are unconstitutional.
With immediate effect, no garnishee order – also known as emolument attachment orders – can be issued, without oversight by a magistrate.
This means a garnishee order can only be granted by a judge or a magistrate; that it needs to be granted in the jurisdiction of debtor; and the debtor must be warned via registered letter that they have 10 days to pay the debt if they want to avoid its granting.
These orders give creditors the right to debit the wages of indebted individuals.
The University of Stellenbosch’s Legal Aid Clinic spearheaded the case against the Minister of Justice and Correctional Services, who is responsible for administering the National Credit Act.
The other respondents in the matter were Flemix and Associates Incorporated Attorneys, representing small credit providers.
The law clinic took an earlier case against 14 micro lenders who enforced hefty garnishee orders against farmworkers on appeal to the Constitutional Court.
The Human Rights Commission has welcomed the ruling, saying it provides much-needed clarity on the matter.
Source: ENCA
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