What is alternative debt resolution? | Fin24
 
In partnership with
  • Data Market Inquiry

    MTN says it is prepared to defend itself before Competition Tribunal over report.

  • Claims of sabotage

    What we know so far about allegations of sabotage at an Eskom power station.

  • Dudu Myeni

    Court dismisses former SAA chiar's bid to have Outa withdraw from delinquency case.

Loading...

What is alternative debt resolution?

Oct 29 2013 12:44
An over-indebted Fin24 user wants to know about alternative debt resolution. She writes:

I am over-indebted. I found a company on the internet which says it can reduce my monthly repayments. They call it alternative debt resolution. The company's name is Accord Debt Solutions. I just want to know if you've heard of them, because according them it is not debt review.

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

Alternative debt resolution agents may only act on one credit agreement at a time and not your whole debt portfolio. They are currently not regulated by the National Credit Regulator, and  no provision is made for them in the National Credit Act 34 of 2005. 

To quote the act:

"Section 44 of the National Credit Act 34 of 2005 applies:
(2) A person must not offer or engage in the services of a debt counsellor in terms of this Act, or hold themselves out to the public as being authorised to offer such service, unless that person is registered in such terms

Debt counsellors may not in terms of section 46(4) (c ) be engaged in, employed by or acting as an agent for a person that is engaged in -
(i) debt collection
(ii) the operation of a credit bureau;
(iii) credit provision."

An ADR agent may not offer the services as set out in the act if they are not registered debt counsellors, and may not "restructure" your debt. 

If, for example, you have a problem with Bank A account 123, they may only assist you in solving the problem with Bank A account 123. They may not restructure your debts with bank A, B and C as well as your accounts with department stores, etc.

My advice is for you to please contact the NCR on 0860 627 627 and speak to one of their specialists, so that be sure to get the possible best advice. 

- 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.  



 

money clinic  |  debt  |  debt review
NEXT ON FIN24X

 
 
 

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
6 comments
Comments have been closed for this article.
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...