In South Africa thousands of cars are repossessed from consumers who find themselves in a terrible economic situation and failing to satisfy their payment obligations in terms of credit agreements. Before a car is repossessed, a credit provider must first obtain a court order, also known as warrant of execution. The court order must inform the debtor to allow the credit providers to repossess the car. Without a court order presented to a debtor, a debtor must never hand in his/her car for repossession.

The National Credit Act 34 of 2005 sets out the steps to be taken before repossession of any goods:

 Letter of demand

The person repossessing a car must send a section 129 letter of demand, which sets out the outstanding amount and a return date. The letter of demand must be submitted personally or by registered mail. The credit providers must prove by your signature, post office track and trace system report that you received the letter of demand.

 Sue the debtor

Summons must be served to the debtor. Summons must be served on the on the already known address of the debtor, if it was not served personally.

 Obtaining a judgment

After obtaining the judgment, the credit providers may proceed to obtain a warrant issued by the court and sent to the sheriff to repossess the goods. Only the sheriff may give effect to this warrant and repossess the good.

 Confiscating goods

The sheriff must come to address of the debtor and hand in the original warrant. The debtor is not required to sign any documents. The sheriff will repossess the car and store it safely. The debtor can repossess the car if he pay the amount owed, however, If the debtor fails to pay the sheriff will sell the car on auction of goods.

Remedy for car repossession

 Defend Summons
 Voluntary surrender
 Debt counseling