Being garnished is one of the most irritating things your creditors could do to you, not because you don’t want to pay them what you owe, but because most do it without formally informing you.
Garnishing does differ from one state to another. Garnishment is carried out and guided by the state/ country’s law. In this case we will speak of Garnishing guided by South African law.
Before the garnishing starts you (The debtor needs to be formally informed) with a registered letter from the Magistrates court.
When a garnishee is issued in terms of the Magistrate’s Court Act, a registered letter is sent to you, the debtor, informing you that a garnishee order will follow.
Your creditor is not obliged to inform you about the legal costs, or the certificate of balance confirming the total you owe or the amount of money (installment) he wishes to deduct from your monthly salary.
There is not stable amount/ percentage that creditors can take from the debtor’s monthly salary, but there is a law stating that the deduction must not cause the employee not to have sufficient means for his own and his dependants’ maintenance.
But some creditors still put themselves above the law and do against the law.
Before your creditor garnishes you, you need to be informed again by your employer’s HR/ pay roll office personnel.
But most people don’t get this notice from their employer and that is wrong.
The up to 5% commission that your employer gets from the process of your garnishing should be paid to them by your creditor not by you.
But we’ve heard many cases where the employer takes the commission from the debtor not from the creditor.