Debt administrators are deducting illegal fees that are conservatively estimated at R800m from repayments made by over-indebted low-income earners, notes Laura du Preez in a Personal Finance report.
Low-income earners who are unable to keep up their debt repayments have in the past sought, and may in the future continue to seek, the help of debt administrators to reschedule their repayments to affordable levels. But a Somerset West lawyer has found that most of these administrators are exploiting the people they are supposed to be helping and trapping them further in debt. Copies of distribution accounts that show how much of the money debt administrators collect from those under their administration was in fact paid to creditors reveal that administrators are charging fees of about 23% to 50% of the amounts they collect.
Full report on: http://http.persfin.co.za/index.php?...icleId=4067486