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Business Practices Committee Report 67

Zen-Corp International

7. Conclusion and Recommendations



Many consumers in South Africa, for various reasons, such as limited economic means and inexperience about credit matters, unintentionally become subject to the attention of debt recovery agents. The majority of these particular consumers obviously live under a great deal of stress and this should not be aggravated by the actions of debt recovery agents. There is a place for debt recovery agents, but even those consumers who are in arrear with the payments on their debts should not be subject to unscrupulous debt recovery agents wielding baseball bats and physically threatening consumers and their families.


The advertisement, and thus business practice, of Zen-Corp international and Ulov Saber, in the opinion of the Committee constituted a harmful business practice. There are no grounds justifying the practices in the public interest. The Committee has consequently resolved to recommend to the Minister that in terms of section 12(l)(b) and (c) of the Harmful Business Practices Ad he declares unlawful the business practices whereby Ulov Saber, directly or indirectly, in respect of the advertising of his services as a debt recovery agent:

(i) distributes handbills or flyers or places advertisements containing words to the following effect: "Our methods are a direct physical approach. No letters of demand. No lengthy court cases. No wasted time. We do whatever it takes to get your money",
(ii) does not comply with the provisions of the Committees' Consumer Code for Debt Recovery Agents

and directs Ulov Saber to refrain from applying the harmful business practice.



Louise A Tager

Chairman: Business Practices Committee

9 December 1998