Share

Debt review nightmare

A Fin24 user has been under debt review for two years and seems unable to make any headway. He writes:

I have a question which is worrying me lot.

I have been in debt review for two years now. My bond and car are also included.

What I do not understand at all is that in June this year the balance on my car was R54 000, according to a statement I received from MCF.

Now, in July, the statement shows a balance of R84 197.53, with about R31 056.93 added on as initial finance charges.

My question is: Why that now?
 
It seems I will never ever finish paying my car. I'm even thinking of cancelling the whole debt review, because I'm having problems with my RCS loan.

The balance is way too high - almost double the amount I borrowed.

I need advice on whether to terminate or not?

Renee Marais NCRDC1780, an independent debt counsellor in Pretoria, responds:

To answer the concern about initial finance charges on the MFC account, ask your debt counsellor to investigate.

Provide the debt counsellor with a copy of your original credit agreement showing all costs and charges.

The debt counsellor must ensure that the statement sent to you is 100% in accordance with the National Credit Act 34 of 2005 and the regulations therein which refer to credit agreements and charges allowed by creditors.

If your debt counsellor is not in a position to do this, the matter must be referred to the National Credit Regulator (NCR) for investigation. Use form 29 to be found on the website www.ncr.org.za.  

Regarding terminations of debt review, the only way to stop debt review is to have the court order rescinded.

That will entail legal costs as it has to be done in a prescribed manner by a lawyer.

Also, you must then be in a position to honour the original credit agreements. It is not always advisable, as there are many factors that come into play.

Firstly, under debt review section 103(5) applies. If your debt counsellor does not know how to apply the 103(5) section in the National Credit Act 34 of 2005, refer the debt counsellor to the declaration sent out to all debt counsellors by the NCR on August 1 2009 where this is explained.

It may also be advisable to have your debt counsellor investigate the RCS account in the same way as the MFC account.

Any discrepancies need to be referred to the NCR. This is why you pay your debt counsellor a monthly after care fee.

- Fin24

Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

Disclaimer:

Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.

Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
-0.1%
Rand - Pound
24.14
-0.1%
Rand - Euro
20.63
-0.2%
Rand - Aus dollar
12.40
+0.2%
Rand - Yen
0.13
+0.3%
Platinum
910.97
-1.4%
Palladium
1,022.57
-4.1%
Gold
2,161.41
+0.1%
Silver
25.14
+0.4%
Brent Crude
86.89
+1.8%
Top 40
66,252
0.0%
All Share
72,430
0.0%
Resource 10
53,317
0.0%
Industrial 25
100,473
0.0%
Financial 15
16,622
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders