What are the fees payable while under Debt Review?
Debt review fees which are payable by a consumer are regulated by the National Credit Regulator. Debt review fees are payable in month 1 or within the first 30 days from the date of application.
The fees are as follows as per the NCR’s Guidelines:
i. A once off application fee of R50 (excl. VAT).
ii. A once off administration fee of R300 (excl. VAT).
iii. A once off restructuring fee of one hundred percent (100%) of my first installment of the debt re-arrangement plan, up to a maximum of R8000 (excl. VAT) single applications and R9000 (excl. VAT) for joint applications.
iv. A monthly after-care fee of 5% (excl. VAT) of the monthly rehabilitation amount (up to a maximum of R450).
v. A monthly transactional payment distribution fee (PDA) as per NCR Guidelines, to a maximum of R15 (incl. VAT) per debt obligation, paid to Hyphen Technologies (Pty) Ltd.
Although debt counselling fees are standard across the debt counselling industry, legal fees vary from one debt counsellor to the next. It is important to note that Debt Sage’s competitive advantage is that our legal fees of R1 000 are the lowest in the industry (If we get all acceptances from credit providers on the proposed restructured accounts and lodge the application to get consent order at the NCT) vs. our competitors who charge in excess of R6 000, regardless of where they obtain the consent order.
The debt review application will be referred to either the National Consumer Tribunal (NCT) or Magistrates Court to obtain a consent order. Debt Sage cannot be held accountable for the NCT or Magistrate’s ruling and the final decision is that of the NCT or Magistrate.
When one or more credit providers have not accepted the repayment plan, the debt review application is referred to a Magistrates Court to obtain a consent order.The consumer is iable for a legal fee of R3 500 (excl. VAT). This is payable to the attorney. This is payable in the Month 2 and may be deducted from my monthly payment to the Payment Distribution Agency (PDA).
If the debt review application is referred to the National Consumer Tribunal (NCT) to obtain a consent order I will pay R1000 (excl. VAT) for the submission of the application to NCT, which includes the filing fee, printing, transportation and stationery costs. This is payable when all credit providers have accepted the repayment plan. This is payable in the Month 2 to Debt Sage and may be deducted from my monthly payment to the Payment Distribution Agency (PDA).