Debt Counselling Fee Guidelines as set out by the National Credit Regulator
The Debt Counsellor may receive the following amounts in respect of consumers who have applied for debt counselling:
An application fee, limited to the amount prescribed in terms of Schedule 2 (2) of the Act, recoverable directly from the consumer upon receiving an application for debt review; (currently no charge with Debt Therapy)
A rejection fee of R300.00 (excluding VAT) in respect of consumers whose applications have been rejected in terms of section 86(7)(a)
A restructuring fee of the lesser of the first instalment of the debt re-arrangement plan or a maximum of R6000.00 (excluding VAT), in respect of a consumer whose applications have been accepted in terms of 86(7) (b) or 86(7) (c). (Should a joint application be required, the fee can be increased to a maximum of R6000.00(excluding VAT)
100% of the fee is payable at the first instalment.
Should a Debt Counsellor fail to submit proposals to Credit Providers or refer the matter to a Tribunal or a Magistrate Court within 60 business days from date of the debt review application the Debt Counsellor has to refund 100% of the fee paid by the consumer (excluding the application fee).
A monthly after-care fee of 5% (excluding VAT) of the monthly instalment of the debt re-arrangement plan up to a maximum of R400.00 (excluding Vat), for a period of 24 months, thereafter reducing to 3% (excluding VAT) of the monthly instalment, to a maximum of R400.00 (excluding VAT), for the remaining period of the debt re-arrangement plan.
Payment of the monthly after-care fee is to commence in the 2nd month after the amount in 1.3.1 above has been paid.
Should the consumer withdraw from the process after completing stages 1.3 above, a fee equal to 75% of the restructuring fee as per 1.3 above is payable by the consumer.
A legal fee for a consent order will vary according to acceptances received, opposition and the negotiations process with Credit Providers. It can further vary by the number of possible postponements of the matter in the Magistrate Court. The legal fee for the consent order may only be deducted in the 2nd month after the amount in 1.3.1 above has been paid. If the consumer’s affairs cannot be resolved through a consent order, and there are additional costs for further legal processes, these need to be separately negotiated with the client. The Debt Counsellor should be able to produce pro-forma invoices issued to them by their lawyers for legal services, when so requested by the NCR. If a Consent Order is obtained via the National Consumer Tribunal you may qualify for a legal/admin fee refund. We will forward you detailed invoices and affect a refund when we send you your Order.
Should any further legal proceedings be required with regards to varying an Order of the Court, the client will be responsible for any further additional fees.
A monthly fee of 3% of your contribution, minimum of R57 with a maximum of R500 + VAT is collected by the National Payment Distribution Agency (NPDA) who receive and distribute your funds paid towards your debt review. The NPDA are a reputable distribution Agency, approved and registered with the National Credit Regulator.
The above fees have been effective from 01 August 2011.
FREE DEBT ASSESSMENT
Complete your details and we will contact you for a Free Debt Assessment
I just want to use this opportunity to say thank you to everyone I dealt with at Debt Therapy. You guys were always very professional and you are absolute life savers. As far as I am concerned you are the best debt review company in South Africa.
Since I handed over the distribution of my debt to Debt Therapy I have had piece of mind, I do not receive numerous phone calls from rude creditors demanding payments. Even setting up the process was simple and quick. Today I have less stress and no fear of answering the phone. Thank you Debt Therapy for making my life so much easier.
Good Day Everyone
I just want to say thank you from the bottom of my heart to all of you at Debt-Therapy You never disappointed me and you paid my creditors every month. Because of you I am debt free today. It feels so good to say it….. I am debt free!
Please keep up the good work for the clients that are still striving to become debt free.
Thank you so much and kind regards
Since we started with the debt review, the very 1st month we experienced the difference it made to our lives, for the 1st time in months we could walk into a mall & do monthly shopping & that’s how it’s been for is the last 3 months. For the 1st time in years I am looking forward 2 the festive season & my wife & I are planning on working plenty of overtime, save up some money & buy a cheap, decent car.
Thank you for your excellent service, you did more than just adding a client on your books, you changed the life of 4 people, my wife, kids & myself.
On the 26th July 2017 my husband and I had a debt review meeting at your offices in Table View.
We just need to bring to your attention the wonderful service that we received from Tara Simke.
Tara was extremely knowledgeable on the topic of debt review and gave us great peace of mind to do business with Debt Therapy.
We will highly recommend your company to future clients.
Thank you once again to Tara for the first class service.