Statistics South Africa recorded 30,248 summonses against private individuals in July, up from 28,944 a year earlier. This represents an increase in the number of individuals being taken to court over unpaid debt. The latest figures show that summonses against individuals increased, with money lent among the categories recording an increase. Across individuals and other debtors, 35,995 summonses were issued in July, up 2.9% from a year earlier.
The number of debt judgments increased by 3.1% to 10,732, although their combined value fell by 2.1% to R352.1 million. The figures come as the cost of servicing debt has increased following the latest interest rate hike, which took the prime lending rate to 10.75%. For borrowers already struggling to meet their monthly repayments, a summons means an unpaid account has moved into the legal system. It does not, however, mean that a court has ruled against the debtor.
Statistics South Africa’s figures showed that summonses relating to money lent increased to 7,632 in July from 6,946 a year earlier. Of these, 7,098 were issued against private individuals. The category includes money borrowed, while separate categories cover unpaid goods, services, rent and other forms of debt. Summonses involving promissory notes, credit cards, dishonoured cheques and other acknowledgements of debt also increased, from 2,429 to 3,119 year-on-year.
The largest category remained other debts, with 10,879 summonses issued during July. Statistics South Africa includes medical fund debt, school and university fees, tax, property levies and outstanding salaries and wages in this category. These are not all conventional bank loans. They include accounts and other financial obligations that can end up before a court when payment is disputed or remains outstanding.
The number of judgments against private individuals, however, moved in the opposite direction to summonses. Courts recorded 8,464 judgments against individuals in July, compared with 8,814 a year earlier as their combined value fell from R284.8 million to R269.6 million. More summonses were issued against individuals during the month, but fewer judgments were recorded against them.
Between May and July, 101,758 summonses were issued, compared with 97,898 during the corresponding three months last year. Courts recorded a significant number of judgments, with 31,076 judgments, and their combined value rose by 12.6% from R930.1 million to R1.047 billion – representing an additional R117 million in judgments over the three-month period. The largest contributors to the increase in their value were other debts, money lent, and promissory notes and other acknowledgements of debt.
Provincially, Gauteng recorded 12,280 summonses in July, compared with 10,081 a year earlier, and had the highest number nationally. The Western Cape recorded the highest number of debt judgments during July, at 2,442, followed by Gauteng with 2,259. Gauteng accounted for the highest value of judgments, at R97.8 million, followed by the Western Cape at R94.3 million and KwaZulu-Natal at R51.1 million.
Key points
- The number of summonses against private individuals increased to 30,248 in July.
- The value of debt judgments over three months rose by 12.6% to R1.047 billion.
- Gauteng had the highest number of summonses, while the Western Cape recorded the highest number of debt judgments.
