How to avoid Vehicle Repossession

Updated: a day ago

Author - Lauren Heekes

What happens if a Repossession Agency arrives at your door to repossess your vehicle? Read Hannetjie’s Story.

Hannetjie’s Story

Hannetjie contacted us just as we were about to close office for the day. A Repossession Agency was standing at her door and was about to repossess her vehicle. She had missed 3 payments.

When Debt Collectors come to your Door


Interestingly enough during Lock Down Level 4 and 5 Debt Collectors were prohibited under the Amended Regulations of the Disaster Management Act issued in terms of Section 27(2) from knocking on the doors of debtors.

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What went wrong?

Hannetjie’s income had been reduced at work due to the COVID 19 pandemic and the Lock Down. She was unable to pay her full vehicle installment over that period. She did not make a payment arrangement with the Vehicle Finance Insititution for a lower installment, or ask them for a payment holiday.

The irony was that most Credit Providers allowed a 3-month grace period for repayments during the Lock Down.

Once the Lock Down was lifted Hannetjie thought that if she ignored the issue it would go away and she resumed paying the normal installment. She also assumed that the Vehicle Finance Institution would understand the economic situation of the country and ignore the fact that she had missed payments.

The Vehicle Finance Institution did not ignore the missed payments, and as she had not made an effort to communicate her issues, they proceeded with legal action.

Send Your Questions to Negociate Credit Solutions at email or get additional contact information below for online assessments, facebook messenger or submit a "Call back Request"

So How did we help Hannetjie?

1. We immediately spoke to the agent that was employed by the Vehicle Finance Institution to repossess the vehicle.

We asked the Agent if there was a warrant of execution or if they were asking Hannetjie to Voluntarily Surrender the vehicle. The Vehicle Finance Insitution had not yet proceeded with a warrant of execution and so could not repossess the vehicle without Hannetjie Voluntarily Surrendering the Vehicle. We asked the Repossession Agent to give us another 24 hours to discuss this matter directly with the Vehicle Finance Institution. We also asked the Agent to provide us with the contact details of the person managing the legal process for Hannetjie’s account.

2. We contacted the Vehicle Finance Institution first thing the next morning and asked if they would consider placing the vehicle under Debt Review.

The Vehicle FInance Institution agreed to place the vehicle under Debt Review pending the outcome of our payment proposal. What this meant was that they wanted to first see what we were going to offer them in terms of a reasonable installment, interest rate and term.

3. We then proceeded to talk to Hannetjie about her financial situation and took a look at her budget and debt.

We came up with a suitable payment plan for all of her debt. The repayment plan was one that Hannetjie could afford and we know that all her Credit Providers would accept. We also went into some detail about how the Debt Review process worked and when she could expect to finish.

4. We submitted her application for Debt Review a few days later.

Within 20 working days we had received acceptances for the new payment proposal. We could then proceed with legalising her contract through the National Consumer Tribunal.

5. Hannetjie was relieved.

She needed her vehicle to get to work to earn a living and she no longer had to worry about where to find the money to pay the arrears on her car.

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Debt Review can Reduce Your Installment and Interest Rates?

What to keep in mind.

1. Always take the time to talk to your Credit Providers about your situation.

Credit Providers are always prepared to assist you for a short period of time until you are able to get back on your feet. This does however depend on how you have managed your debt historically.

2. Leaving debt and not making any payment at all is not a good idea.

Where possible always make an arrangement with your Credit Provider. Leaving debt unpaid can be damaging to your Credit Score and the interest charges, penalty fees and legal fees can result in debt growing very quickly.

3. Where assets are concerned. If you have made no effort to talk to your Credit Credit Provider about your situation, they will proceed with legal action against you.

Once legal action commences, you will be expected to bring the missed payments up to date immediately. If you are unable to bring your missed payments up to date you stand the chance of losing your assets. Most consumers cannot afford to bring the missed payments up to date and end up losing their assets or placing undue stress on family members to assist with bringing the payments up to date.

4. If the arrangement that the Credit Provider is willing to make is still not financially viable, then consider approaching a reputable Debt Counsellor.

If you have spoken to your Credit Provider, but the payment arrangement is still too high to manage, consider contacting a Debt Counsellor. Remember that when you make a payment arrangement you are not paying enough to cover your original contractual interest charges. Your Debt will therefore grow while you are making the reduced payment and the term of your debt will be extended.

Under Debt Review the installment and interest rate is reduced. This means that when you make a payment it will cover the interest charges and some of the capital balance and so your debt will reduce.

Send Your Questions to Negociate Credit Solutions at email or get additional contact information below for online assessments, facebook messenger or submit a "Call back Request"

When Debt Review works it can be a Life Saver

There is no quick fix to getting out of debt. Make sure that you partner with a Debt Counsellor that is going to assist you to get out of Debt.

If you would like us to conduct a free financial assessment for you here are contact options:

1.Complete our online assessment form at

2. Send us an email to

3. Submit your query via our FaceBook Messenger app

4. Complete a call back request on our website at

A consultant will contact you to discuss the way forward. Please note that you are not obligated to proceed if you feel that the solution we offer you will not assist you enough financially.

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About our Author

Lauren is a registered member of the National Credit Regulator. Prior to that, she worked as a Financial and Technical consultant for McGregor-BFA (Now INET-BFA). McGregor-BFA provided Trading and Market related data as well as Investment management software to Asset Managers, University Business Schools and Investment entities. Thereafter experience was advanced to the Property Market working as a Project Manager for Propertyi. But it was her career at the IEB in Adult Education that inspired a passion of hers to educate consumers about responsible ways of managing their financial lives and the long term advantages of doing so. It is her belief that financial education should be taught from an early age. By doing so we can create a country that is economically stable, driven not only by work ethics, but by becoming Financially Independent too.

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