We constantly read about the abuse of garnishee orders within the industry. It is important for consumers to understand and equip themselves with the knowledge of garnishee order processes so that you are not exploited in any way.
What is a Garnishee Order?
A garnishee order (also known as an Emolument Attachment Order, or EAO) is a Court order that instructs your employer to pay your credit providers before your salary is paid to you. The result is that your credit provider will be paid first, and your take-home salary will be reduced
There are different types of orders that can be obtained for salary deductions namely:
Garnishee Order (Emolument Attachment Orders) – Obtained by a creditor for debts in arrears.
- Administration Order – Obtained by an over indebted person.
How do I prevent a Garnishee Order from being issued?
Always repay your credit instalments when they are due and do not sign any consent to judgments.
What to look out for on a garnishee order
A garnishee order must be issued by a Court (look out for the Court stamp) and signed by a Magistrate.
A garnishee order must be served to you by the sheriff of the Court. The Sheriff is an official representative of the Court.
A garnishee order must specify the fees charged. These fees must be in accordance with the National Credit Act.
The interest and fees charged to you may never be more than the amount you owed when you fell behind on payments. This is called the In Duplum rule.
- If the monthly garnishee amount is too high, you can ask the credit provider to decrease the monthly amount. If they are not willing to reduce the amount, you can apply to court to have the amount reduced. You will have to show that the garnishee amount is preventing you from affording your necessary monthly expenses.