The Debt Counselling Fee Guidelines:
- An Application fee of R50 + VAT in terms of the National Credit Act, Schedule 2 (2).
- A rejection fee of R300.00 (excluding VAT) when an application for debt review is rejected.
- A Restructuring fee less or equal to the first installment of the debt re-arrangement plan with a maximum of R6000 (excluding VAT)
- In case of a joint application the fee may be increased to R6000 (excluding VAT)
- A monthly After-care fee of 5% (excluding VAT) of the monthly installment of the debt re-arrangement plan with a maximum of R400 (excluding VAT) for a period of 24 months. .
- Should the consumer withdraw from the Debt Review Process after a certain stage a fee equal to 75% of the restructuring fee will be payable by the consumer.
- The legal fee needs to be paid in the 2nd month for the debt counsellor to obtain a consent order when all credit providers consented to the debt re-arrangement, the amount will depend on the area and if a correspondence will be utilized.
- Any additional cost for further legal processes. The debt counsellor should be able to present proforma invoices issued by the attorneys involved.
- At the end of the 3rd month, the consumer needs to start paying the PDA towards all his / her creditors.
Clients pay a fee in recompense for the huge amount of work that is involved in the debt review process. The job is not limited to liaising with the credit providers, drawing up an acceptable budget and sending proposals to credit providers. The debt counsellor must also ensure that the entire process follows legal guidelines, provide on-going service and consultation and be a mediator between the client and the bank.
