Most debt mediation queries resolved

Nov 27 2012 15:36
Johannesburg - Ninety-nine percent of debt mediation queries received during the third quarter of 2012 have been resolved, the National Debt Mediation Association (NDMA) said on Tuesday.

Of the 704 enquiries, only seven (one percent) remained pending, it said in a statement.

The third quarter also saw an almost 30% reduction in the number of requests for debt mediation when compared with the second quarter.

"The declining trend is seasonal, as the first two quarters of each year are the busiest," the NDMA said.

Just over two-thirds of complaints were lodged by consumers, almost 30% were from debt councillors and the rest were non-specified referrals.

Almost a quarter of cases were requests for debt mediation and, of those finalised, half were successful. A fifth of these were unsuccessful and almost the same number withdrew from the process.

These withdrawals were attributable to the consumer receiving assistance from family, or the consumers' refusal to make necessary lifestyle changes.

The reasons behind requests for assistance included loss of a spouse, loss of employment, illness and maternity leave.

Chief executive Magauta Mphahlele said the high proportion of successful resolutions were an indication of the positive results yielded through mediation.

"If the out of jurisdiction, withdrawn and referred cases are excluded, the percentage of instances where we found in favour of the consumer increased to 67%."

She said there had been a decline in the number of complaints regarding vehicle repossession and termination from debt review.

According to the NDMA website, this termination referred to the process whereby a credit provider withdrew from a debt review process after 60 business days.



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
Comments have been closed for this article.

Company Snapshot

We're talking about: MINI BUDGET

Finance Minister Malusi Gigaba has laid bare South Africa's economic woes. Visit our Mini Budget Special for all the action.

Money Clinic

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

Voting Booth

Are you participating in #BackFriday sales?

Previous results · Suggest a vote