WHY MUST DEBT REVIEW FEES BE PAID TO YOUR DEBT COUNSELLORS?

As a formal process debt counselling and its related costs are governed by the National Credit Act with a monthly repayment amount specific to your situation and financial allowance. This is calculated by how much you owe and how much you can afford.

Debt counsellors are permitted to charge certain fees for services, which include:

Month 1

1. Application Fee: A once off application fee of R50 is charged as per the NCR guidelines. You may be charged for your credit check, as well, if you have already used your yearly free check.
2. Administration Fee: This fee is upfront and it is expected to be paid in full. It includes the consultation. the explanation of the process, the fee disclosure, Form 17.1 process, loading you onto the Debt Help System (DHS) and the rejection process as per Form 17.2(a). This includes notifying the consumer and credit providers, updating the DHS and compliance with Regulation 25.
    The administration fee is charged at R300 per debt counselling application.

Month 2

1. The Determination Fee which are fees that are aligned to outcomes of the full assessment of the consumers’ financial information. Determination Fees include:

3.1. Restructuring Fee – this deals with the Form 17.2 (b) process, including the proposal preparation, loading the plan onto the debt counsellor’s PDA (Payment Distribution Agent) profile, negotiating with credit providers and submitting the final proposal. It also includes supplying the debt counselling documents to the attorney to draft the court application, updating the DHS, transferring the consumer, instructing the attorney to draft the court application or collating and filing NCT (National Consumer Tribunal) application and the withdrawal by the consumer (Form 17.W).

3.2. Reckless Lending – reckless lending assessment and supplying reckless lending documents to the attorney to draft an affidavit on the assessment outcome.

This is charged at R1 500 per debt counselling application.

1. Aftercare Fees: this includes the process of the Form 17.2(c), the review of the consumer’s financial situation, attending to payment queries, the clearance process, including securing paid-up letters, the withdrawal (Form 17.W) and updating the DHS.
2. NCT Submission Fee
3.  Attorney Fee