Is Nu Dent Management legit?

Nu Debt Management is a legitimate, registered debt collection company in South Africa.

They are not a “scam” in the sense of being a fake business, but like many large debt collection agencies, they have a reputation for aggressive tactics that can lead people to question their legitimacy.

Here is the breakdown of why they are considered legitimate and how to handle them:

Proof of Legitimacy

• Registration: Nu Debt is a registered member of the Council for Debt Collectors (CFDC), which is the statutory body regulating the industry in South Africa.
• SARS Partnership: They are one of the external third-party debt collectors officially appointed by the South African Revenue Service (SARS) to collect outstanding tax debt.
• Affiliations: They are also typically affiliated with the Association of Debt Recovery Agents (ADRA)

Why People Often Think They are a Scam Many consumers report negative experiences with Nu Debt on platforms like HelloPeter and Reddit for the following reasons:

• Aggressive Communication: They use automated “robocalls,” frequent SMS messages, and emails that can feel like harassment.
• Old or Error-Ridden Debt: They often buy “debt books” from retailers or service providers. Sometimes these books contain outdated information, leading them to pursue people for debts that were already settled or are prescribed (older than 3 years).
• Scare Tactics: Their messages often mention “legal action” or “blacklisting,” which are standard collection tactics but can be very intimidating.

How to Protect Yourself If Nu Debt is contacting you, do not ignore them entirely, but do not pay immediately without verification:

• Request a Statement of Account: Legally, you have the right to see a detailed breakdown of the debt, including the original creditor and how interest/fees were calculated.
• Check for Prescription: In South Africa, most consumer debt “prescribes” (expires) after 3 years if you haven’t acknowledged it or made a payment. If the debt is older than 3 years, they cannot legally force you to pay it.
• Verify with the Council: You can verify their current registration status directly on the Council for Debt Collectors website.
• Don’t click SMS links: If you receive an SMS with a link to pay, it is safer to go directly to their official website or call their verified office number to confirm the details. Are you being contacted about a specific bill, or did you receive a suspicious SMS? I can help you figure out the next steps if you have more details.

Courtesy of Better Practice Management