garnishee order for my domestic worker

[Ntonto]

And please remember that the first amount given in the garnishee order does not include further legal expenses, and that the employer will be given a new outstanding balance once the original garnishee amount has been settled.

I was was Garnished R20 431. My employer deduct R1022 and the deduction commenced in December 2008. When i calculate the amount that i has been deducted so far is comes up to R18 463.20 therefore i assumed that my balance from the initial capital amount is R1 967.80 excl the interest rates and legal fees because the debt collectors advised me they will charge that when my capital is payed up. yesterday when i called them to enquire about my balance and as the calculations of legal & interest fees, i was told that my balance is R4947.09 from the initial capital and she confirmed that so far i have paid R18 463.20. But when i add these two amounts they don't come up to R20 431 its more that which is R23410.29. And when i ask them as to what is this R2 979.29 for the lady become to emotional and angry. they refused to explain to me in writing and show as how was this calculated.

My question is, If the court issue a garnishee on a certain amount for instance in my case it was R20 431 is it fixed or it can go up anytime? I feel that these people are trying to rip me off. I understand that this amount it excludes legal fees but when i ask them to give me the figures for legal fees they are refusing.

Please help me what can i do to prevent these sharks from ripping me off whilst its still early.

[Dave A]

Works out at about 16% in costs and interest if calculated against what you paid so far.

Considering interest + handling fee on payments made... Doesn't seem that far out of line. Certainly not enough to risk incurring additional costs in a fight about fine details.

Ntonto - at least it looks like you're coming down the home straight. May I suggest you use that "screwed over" feeling to help prevent you from ever getting into the same situation again.

[BusFact]

And please remember that the first amount given in the garnishee order does not include further legal expenses, and that the employer will be given a new outstanding balance once the original garnishee amount has been settled.

This has also caused me issues with staff in the past, especially when its extremely difficult to get an itemised statement for them on the extra charges.

Surely it would be better to calculate the expected interest and add that to the original garnishee order. So if regular payments are made, they know exactly when the stress will end.

I really dislike debt and its unintended consequences.

PS> Good advice to Ntonto, Dave.

[Ntonto]

But Dave that what i don't understand. When i asked them they sais the capital does not include the handling fee & interest they still going to charge me that separate that's where i don't understand.

[desA]

@ Ntonto : A few suggestions:

1. Get in writing - now - exactly what the final amount will be;
2. Get in writing the capital amount;
3. Get in writing the finance & whatever other fees the loan-sharks want;
4. Go & get some advice on what your final payment should be;
5. Submit a payment as 'full-&-final' settlement. If it is accepted & received, then you are done. If not, then you may have to pay what these loan-sharks want.
6. Stay out of debt & the loan-sharks' clutches - they are pure evil.

Make sure that the 'in writing' part is on a company letterhead.

[Dave A]

they sais the capital does not include the handling fee & interest they still going to charge me that separate that's where i don't understand.

You might get lucky and that day will never come - the accounting package that is quite commonly used for legal billing should have been assigned to the scrap heap a decade ago

The most likely explanation then is that the R2 979.29 was for legal expenses up to and including getting the garnishee order and this was paid up first. Those legal fees can add up and again, this figure might not be "unreasonable" (depends who's looking at it, I guess).

The most frustrating thing is the reluctance of some lawyers (and I hear this is a problem with some debt collectors too) to provide a detailed statement. In theory this is all about keeping down costs and as you will probably end up footing the bill that sounds cool, but I suspect there's a practical underlying problem - archaic admin systems.

4. Go & get some advice on what your final payment should be;
5. Submit a payment as 'full-&-final' settlement. If it is accepted & received, then you are done.

That's actually a pretty good idea - ask for a settlement figure

I'd hold on until the last payment (based on the current capital balance given) was due, mind you. But it would be a good way to press for a final close in the matter.

You'll have got off fairly lightly if the whole affair just costs you the extra R3000.00 or so, but if they come with a whole lot of extra costs at that point, that would be a good time to ask for a detailed statement as to how they arrived at their figures.