YOUR TRUSTED PARTNER IN DEBT RECOVERY
The Council for Debt Collectors was created through legislation to regulate and oversee the debt collection profession in South Africa.
The Act ensures fair debt recovery practices and governs the fees and remuneration that registered debt collectors may charge. It grants the Council authority to monitor conduct, enforce compliance, and uphold professionalism within the industry.
By promoting ethical standards and good governance, the Council plays a key role in transforming the debt collection system – protecting both the public and credit providers, and ensuring that debt collectors operate with transparency, accountability, and integrity.
In terms of Section 20(1) of the Debt Collectors Act, Act 114 of 1998, every debt collector who operates in their own name or for their own
account is required to open and maintain a separate trust account at a registered bank (as defined in the Banks Act, Act 94 of 1990). All
monies received or held on behalf of any person must be deposited into this account as soon as reasonably possible after receipt. Debt collectors are not attorneys and are not part of a registered trust structure. Therefore, banks do not recognise their trust accounts in the same manner as those of legal practitioners. A debt collector may open a current, savings, or cheque account, provided that this account is used solely for the purposes of debt collection. It may not be used as a personal or general business account. Even if no funds are being deposited, the account must still be maintained. The account must be treated as a trust account by both the debt collector and the bank.
ADRA represents the collective voice of debt recovery professionals across South Africa, engaging with government, regulators, and industry bodies to
shape a fair and effective regulatory environment.
ADRA advocates for a responsible, ethical, and professional industry that plays a vital role in the credit lifecycle – supporting both credit providers and consumers. Through education, lobbying, and strategic partnerships, ADRA promotes the industry’s reputation and long-term sustainability.
ADRA empowers its members through training, skills development, networking, and access to shared resources – all while demanding the highest standards of compliance, integrity, and professionalism through our strict code of conduct.
As an independent and inclusive body, ADRA operates free from political influence and is committed to fairness, transparency, and equality in all its dealings.
In terms of Section 20(1) of the Debt Collectors Act, Act 114 of 1998, every debt collector who operates in their own name or for their own
account is required to open and maintain a separate trust account at a registered bank (as defined in the Banks Act, Act 94 of 1990). All
monies received or held on behalf of any person must be deposited into this account as soon as reasonably possible after receipt. Debt collectors are not attorneys and are not part of a registered trust structure. Therefore, banks do not recognise their trust accounts in the same manner as those of legal practitioners. A debt collector may open a current, savings, or cheque account, provided that this account is used solely for the purposes of debt collection. It may not be used as a personal or general business account. Even if no funds are being deposited, the account must still be maintained. The account must be treated as a trust account by both the debt collector and the bank.