A debt purchasing company contacts you claiming to have bought your old debt and demanding immediate payment
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The Situation
What They Said
“We have purchased your debt from the original lender. You now owe us — and the terms may have changed.”
A company you have never dealt with contacts you claiming they have purchased your debt from the original creditor and that you must now pay them, sometimes implying the terms of the debt (interest rate, total amount) can be changed by the purchase.
The Fallacy
False Novation / Manufactured Obligation
The debt purchaser implies that the sale of your debt creates new obligations — including possibly new terms — that you must accept. In South African law, the sale of a debt (cession) does not change the terms of the original agreement. The new creditor steps into the shoes of the old one — they inherit exactly the same rights and no more. They cannot add interest, change the amount, or modify terms simply because the debt has been sold.
What the Law Says
Your Legal Foundation
National Credit Act 34 of 2005
Section 69 — Assignment of Credit Agreements
“A credit provider may assign or transfer its rights and obligations under a credit agreement only to a person who is registered as a credit provider in terms of this Act, or who is exempt from registration, and the terms of the credit agreement remain the same after the assignment.”
A company buying your debt can only do so if they are a registered credit provider under the NCA. After the sale, your obligations remain exactly as per the original agreement — no new interest, no changed terms, no added fees simply because the debt was sold. You should ask for proof that the new company is a registered credit provider.
What Scripture Says
God's Word on This
Romans 13:8 (NET)
“Owe nothing to anyone, except to love one another, for the one who loves his neighbor has fulfilled the law.”
Scripture calls us to honour genuine obligations — but a genuine obligation is one that was lawfully created and has not been altered by a third party's commercial transaction. You are called to pay what you truly owe under the original agreement — not inflated amounts created by debt traders acting outside the law.
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What They'll Say Next
Common Counter-Arguments
After you respond, they may push back with these arguments. Members get the full rebuttal for each.
They might say: “We can add collection costs and legal fees on top of what you owe.”
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