Regulatory Alerts2017-08-28
Added · Updated
Circular 6 of 2023 - Emolument Attachment Orders and Other Related Matters
The National Credit Regulator advises credit providers, debt collectors, and attorneys to cease inflating judgment debts with excessive legal costs and fees during emolument attachment order collections. Legal fees must be reasonable, taxed, or agreed upon by the consumer, and interest on judgment debts must cease accruing once it equals the outstanding principal debt under the in duplum rule. Employers are reminded to ensure that total EAO deductions do not exceed 25% of an employee's basic salary, and non-compliance may result in NCR investigations or prosecution.