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Regarding terminations of debt review, the only way to stop debt review is to have the court order rescinded.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