Garnishee Limits?

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30% Limit on Emolument Attachment Orders


The National Credit Regulator

The National Credit Regulator want to limit the amount of money that can be taken from a consumers salary in the form of an EAO or Emolument Attachment Order (often incorrectly called a garnishee order). It seems that they would like to limit the amount that can be taken from a consumers salary to 30%.

Why have’ garnishee’  limits ?

At the moment there are no laws in SA that prevent EAOs adding up to even 100% of a consumer’s income.  In the wake of the events at Marikana where many Miners who were earning high salaries were still borrowing extra funds to make ends meet due to not having any ‘take home’ pay this issue has been closely scrutinised. The NCR feel that this limit might be one solution in reducing abuse.

Big Talk

Earlier this year there was talk of doing away with EAOs but this is unrealistic and could possibly so destabilise the banks that this has had to be rethought.

Other Plans

The NCR are also championing that EAOs only last for 5 years and afterwards they need to hand the debt over to other collection solutions. The NCR are consulting with creditors in this regard and are hoping to publish guidelines in the near future.

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