Posted by: | 2016/06/21 16:49
Hi there, been under debt review for 7 years and last week my debt counselor e-mailed me asking me to pay a certain bank an extra R1500. I questioned this and then started questioning a lot of things. Firstly I have never missed a payment on debt review, secondly, when I went under there was supposed to be a court order which I filled in application forms for, thirdly how is it possible I owe more on debt review than I began with? Ie took a loan out for R8000, now I owe R26000, and so on. My counselor says she never had me from the beginning and inherited a few accounts. I was with Protocall (Elize Hall) and now I am with Credit consumer care. I cannot afford to be on for another 5 years, where to from here?
Posted by: Neil Roets | 2016/06/23 16:17
Thank you for affording me the opportunity to assist.
I understand that the current debt counsellor will not have all the information of what transpired when you originally applied with the first debt counsellor, but she should be able to assist with your questions.
She will have to investigate if a court order was indeed granted that she might not have been aware of. If the previous debt counsellor did not hand over the complete file, and no longer exists, she can contact the credit providers to find out if they might have one on record.
A court order should have been obtained by now, unless there is a specific reason why the Magistrate in the specific court was unable/unwilling to grant one.
Regarding the outstanding balance discrepencies should the new debt counsellor be able to request a detailed statement from the credit providers to establish what the situation on the account was since debt review i.e. what the balance was, the amounts debited and credited. She would be able to establish if the balance is indeed correct and if the in duplum rule should have been applied.
If the amount you pay on a monthly basis is not sufficient to cover the interest and charges on the account it can result in the outstanding balance increasing, but you should be protected by the in duplum rule and the current debt counsellor can assist you with investigating this by requesting historical documents from the credit providers. If it is indeed the case that your premiums do not cover the interest it would be advisable to increase your offer amount, as the term you are under debt review is directly linked to the amount you pay on a monthly basis.
I hope that the debt counsellor will be able to assist you.
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