DEBT COUNSELLING FEES

 

According to the National Credit Regulator the Debt Counsellor may receive the following fees in respect of the consumers who have applied for Debt Counselling:

 

  • Application fee: R50.00

Recoverable directly from the consumer upon receiving an application for Debt Review.

 

  • Restructuring fee:

A Restructuring fee of the lesser of the first instalment of the debt re-arrangement plan or a maximum of R6000.00 (excl VAT).You will be responsible for paying this fee on the date of receiving your next salary.

 

  • Withdrawal after debt re-arrangement plan:

Should the Consumer withdraw from the process after completing the Debt re-arrangement plan, a fee equal to 75% of the restricting fee as per (ii) above is payable by the consumer.

 

  • 100% Refund:

Should the debt counsellor fails to submit proposals to Credit Providers or refer the matter to a Tribunal or a Magistrate's Court within 60 business days from the date of the Debt Review application, the Debt Counsellor will refund 100% of the fee already paid by you.

 

  • After-care 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 the 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.

 

  • Rejection fee: R300.00

Should you decide to withdraw from the Debt Review process in the period between signing the application and the completion of the restructuring negotiations by the Debt Counsellor, you will become liable for the payment immediately after withdrawing from the process.

 

  • Legal fee:

Legal fee for a consent order: R750.00.

Legal fee to refer Debt Review application to court: Separately negotiated.

Section 86 (8) of the National Credit Act stipulates that a Debt Counsellor has to record accepted proposals by having the client sign a consent order.  The matter must be referred to the Magistrate’s Court with the Debt Counsellor’s recommendation.  This fee will be discussed with the client by the appointed Debt Counsellor or Consultant.