A Fin24 user feels like he will never get out of debt. He writes:

It seems like I am never going to pay of my debt. My car went from R48 000 to R99 000 in the same time period as Tshidi with the same company, MCF.

Please advise on what to do and how this is ever going to get sorted out.

Renée Marais, an independent debt counsellor in Pretoria (NCRDC1780), responds.

If the MCF company you are referring to has restructured your debt under debt review, did they provide you with a repayment schedule (otherwise known as a proposed repayment plan or proposal)?

This is a repayment plan that reduces debt review repayments and shows interest and term as well.

Do you pay a third party payment agent, also called a PDA?

They have to provide you with proof of payment for the complete term you have been under debt review and this can be checked on your bank statements.

If neither of these things have been done for you and cannot be provided, you have to complain to the National Credit Regulator (NCR) by filling in form 29 (find it on www.ncr.org.za) or phone them on 0860 627 627.

You will have to fill in two complaint forms, one for the payment agent and one for the debt counsellor if need be.

The complaint form does not have space for the complaint in detail so you will have to write it down and attach it to the form 29 and email or fax it it to the NCR.
 
If MFC (Motor Finance Corporation) has financed your car, you must remember that, if the restructuring has not been accepted by MFC and a court order is not in place from the debt counsellor, your interest will add up fast, as under debt review usually you do not pay enough per month to cover the interest and costs.

This is the reason consumers have to consult reputable debt counsellors.

In the meantime you can search for another debt counsellor to assess the situation and offer advice on www.theDCI.co.za.

- Fin24

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