DCCP5112Ta
DCCP5112Ta
This is a True or False question. You need to answer either True or False for all the questions, and
you must substantiate your answer. You will receive one mark for correctly answering either true
or false, and you will receive one mark for substantiating your answer correctly.
Q.2.1 The objective of debt collections is to recover a debt. (2)
Question 3 (Marks: 5)
Arrears; blacklisted; credit bureau; credit control; handing-over; indebted; legal; over-due;
outstanding; owed.
‘____(a)___ to an attorney’ is a phrase used when a creditor resorts to ___(b)___ means or action
to obtain repayment of money ___(c)____by a debtor. Companies, for example, do this when a
customer’s account falls into ___(d)____ and the efforts of the company’s ____(e)____ personnel
or department have failed.
You successfully completed the debt collections module on the Higher Certificate in Legal Studies
(HCLS) programme and later went on to complete the Bachelor of Laws Degree. Your friend
Thelma is also an attorney. Thelma did not initially study towards a HCLS qualification and does
not have a clue on how to run a collections department.
Answer the following questions to assist Thelma in her understanding of how a debt collections
department operates and what is required to operate such a department. Also assist her in
polishing up her knowledge of civil procedure and the role it plays in debt collection.
Q.4.1 Thelma tells you that she needs to open a debt collection file in the following
(8)
matter:
Jerry Maree is a good friend of hers. Jerry asked Thelma to recover money owned
to his company, JM Furnishers (Pty) Ltd. One of his customers Sue-Mari Singh
owes Jerry’s company R250 000.
Using the abovementioned details, provide the information that should appear on
the cover of a clients file.
Q.4.2 Jerry feels that a letter of demand is a waste of time and money. Sue-Mari knows
that she owes the company money and Jerry thinks telling her one more time in (6)
writing will not make any difference. Explain what a letter of demand is.
Q.4.3 Jurisdiction refers to the ‘right’ of a court to hear a particular case. Briefly explain (10)
what jurisdiction is and the factors upon which the ‘right’ depends.
Q.3.4 Different types of summonses are used for different types of claims. Differentiate (6)
between liquid claims and illiquid claims.
END OF PAPER