Fees and PDA
The National Credit Regulator determines the fees payable to debt counsellors and we must adhere to the prescribed fees, except for legal fees in a Court application.
When we approach a magistrate’s court for a debt review Court Order, we appoint an attorney to represent us and at a cost based on an attorney and client scale.
Consultation Fee.
R 50.00
Administration Fee.
R 300.00
Restructuring Fee.
R 8,000.00 max.
R 9,000.00 max.
Single application.
Joint application.
The lesser monthly debt review payment will be applicable.
Aftercare Fee.
R 450.00 max per month.
Fee is equal to 5% of the monthly debt review payment.
Consent Order Fee.
R 1,100.00
Court Order Fee.
Attorney and Client scale.
Amount will be disclosed upon application.
PDA Fees.
R 0.01 to R 99.99 = R 0.00
R 100.00 to R 200.00 = R 5.00
R 200.01 to R 500.00 = R 10.00
R 500.01 plus = R 15.00
Fees are charged per line item.
The fees are included in the repayment plan.
Your first and second payment will cover the debt review and legal fees.
The creditors are informed via the repayment plan regarding short or no payments for the first and/or second month. (Depending on your monthly contribution)
It is important to pay in the first month that you apply for Debt Review as the creditors expect full payment from at least month three.
Very important is the time-frames involved in the debt review process as we only have 60 (sixty) business days from date of application to see to the whole process, including obtaining a date for hearing at Court.
A payment missed within the first two months would jeopardize the whole process and may result in a credit provider terminating the process.
Debt Counsellors are not allowed to receive payments, except for the consultation, administration and aftercare fees, directly from the consumers and we therefore utilize the services of a Payment Distribution Agency.
The Intuitive Payment Distribution Agency (iPDA) is our preferred service provider.
Your monthly debt review payment will be made to the account of the iPDA.
We will provide you with their account number for EFT payments or their debit order instruction.
The iPDA will receive your debt review payment and distribute the funds in line with the repayment plan.
The distribution will include payments for the creditors, aftercare and iPDA fees.
For the first and second month the iPDA will distribute your debt review payment towards the consultation, administration, negotiation and legal fees.
You will receive a monthly payment report from the iPDA.
In line with the NCR guidelines, clients are allowed to pay their creditors directly as per the repayment plan.
When a client choose this option the client must remember to pay the monthly aftercare fee directly to the debt counsellor.
We strongly recommend that our clients make use of the iPDA, for the following reasons:
We receive excellent daily reports from the iPDA. At any stage or period in the process we can provide our clients with the outstanding balances for each credit agreement.
We are immediately aware of incorrect account numbers and can rectify the same before it becomes a problem.
We know in advance when a specific credit agreement is almost paid in full and can take the appropriate actions.
Many proposals have cascading payments and the iPDA will pay accordingly.
We are made aware of short or no payments, which has a negative effect on the debt review process, and we can communicate with our clients and provide assistance and advice.