Loading...
See More

Debt mediation requests peak

Feb 19 2013 16:28 Sapa


Related Articles

Capitec clears up complaint

Bad debts hit Absa earnings

Unemployment triggers debt crisis

Can I get a debt review grace period?

Is it legal to hike debt instalments?

Debt noose too tight

 

Johannesburg - Requests for debt mediation increased by 60% in the fourth quarter of 2012, the National Debt Mediation Association (NDMA) said on Tuesday.

It said the number of cases where mediation was requested spiked from 538 in the third quarter of 2012 to 1352 in the fourth.

About 83% of the complaints were from the banking sector, while the remaining 17% were from micro-lenders, vehicle financiers, and clothing and furniture retailers.

NDMA CEO Magauta Mphahlele said although banking significantly contributed to the high number of cases, financial hardship mediation reflected the sort of accounts which were generally difficult for consumers to pay.

"The role of furniture retail and motor finance became larger, with the two contributing 16 percent and 12% respectively," said Mphahlele.

Financial hardship mediation is when consumers experience difficulties making payments, usually because of retrenchments, divorces or maternity leave, and are finally issued with section 129 notices.

Mphahlele said most of the cases were complaints about slow repayments or the lack of response to debt review applications.

"Unfair termination from debt review, non-adherence to court orders and legal action taken while under debt review were also prominent."

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

debt
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

New GIF keyboard on iOS for added fun!

Soon sending an LOL! or facepalm will be so much more fun!

 
 

For chic geeks...

Puppy goes crazy over iPad game
Printable solar panels will bring exciting new opportunities!
Now there’s a special lane for texting while walking
LOL! 7 brutally honest texts from parents

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...