In the field of collection of debt secured by an asset, for example an installment agreement where ownership over goods sold is retained (such as furniture, home appliances or motor vehicles) the consumer has the statutory right in terms of section 127 of the National Credit Act to terminate the agreement and voluntarily hand the goods back to the credit grantor.
The goods thereafter have to be sold, the proceeds credited to the consumer’s account, and the consumer remains liable for the outstanding balance. This creates an opportunity to optimise the debt collection process and to recover the asset sold through a voluntary surrender process, especially where other avenues have proven unsuccessful.
ADRS has a voluntary surrender asset recovery facility through its field agent capability.
The process entails that a certain category of consumers (in particular those who are in such financial distress that they are unable to make any payment) may be requested to make use of the voluntary surrender process in order to reduce the indebtedness.
Compliance with the law and ethics are paramount in this process, as the emphasis is on the consumer surrendering the goods on a voluntary basis and the required documentation being correctly completed and signed by the consumer according to the law. Strict management and quality control over the whole process is performed in order to ensure compliance. This process is controlled through the ADRS Voluntary Surrender Module forming part of the ADRS Debt Collection Management System. Asset recovery, in particular motor vehicle recovery, is also undertaken through ADRS legal processes.