[Question] Debt Counceling, consolidation

[Dave S]

I remember some time ago, around the time that NCA came about. If an individual was in serious debt and couldn't make the payments, they could apply to somewhere for debt counceling/consolidation.

Does anyone have any idea how to go about this and who to contact? I have an employee who is having trouble affording his bond and the bank won't even listen to his case. With the result that he is about to loose his home.

I found the number of a debt councellor on the net, when he called, the chap on the other end wants to gharge him R6000.00 to negotiate with the bank on his behalf!

[Dave A]

I found the number of a debt councellor on the net, when he called, the chap on the other end wants to gharge him R6000.00 to negotiate with the bank on his behalf!

Does he want the money up front, Dave?

[Dave S]

Yes, apparently. My thoughts though, if this chap is so strapped that he needs debt councelling etc. Where is he going to find R6K up front?

Some years back, following my retrenchment, someone told me to contact a debt councellor whom was appointed by Gov. and it wouldn't cost anything, it would also ensure that my assets could not be siezed but, for the life of me, I can't remember the contact details. I never did have to go this route as a friendly chat with my bank manager had me sorted.

Unfortunately, this black employee doesn't seem to have a good relationship with his bank and he needs a little help.

[Dave A]

I have a staff member who has been through the process and I'm sure the payment for the debt counsellor came out of the rescheduled instalments. Admittedly the debt counsellor got paid first and then the creditors in the debt arrangement, though.

Asking for the money upfront sounds dodgy. Too many people disappear with the money in this country and targetting the cash-strapped has got to be a soft market. After all, they probably don't have the money to sue or pursue when they get screwed

[Dave S]

Asking for the money upfront sounds dodgy. Too many people disappear with the money in this country and targetting the cash-strapped has got to be a soft market. After all, they probably don't have the money to sue or pursue when they get screwed

Only too true... Fortunately this employee has now found his own way out of his mess, hopefully it works for him.

[NSReeders]

The fee these debt counsellors charge, when is this payable? My husband went with United Debt counself first and had to pay them around R4000 upfront. Suddenly the "closed down" even though you can still find them on the internet. But the telephone numbers have been removed and you can only contact them via an online form. Our case never even went to court by that stage and there is nobody to send us his "file" with how far things went. He then had to go with a different agent who also wanted R3000 to get things going and it's still an utter mess. Nothing has been signed by the court even though we are still paying the current "agreed" amount via African Bank.

[Dave A]

The fee these debt counsellors charge, when is this payable?

Seems pretty standard that the debt counsellor gets paid first.

It also seems you're not the only one where they didn't deliver. That staff member case I referred to earlier in this thread - the wheels have come off on that deal too. The debt counsellor also didn't get a court order and now a vehicle has been repossesed.

It was referred to the credit regulator, who referred the "victim" back to the debt counsellor, who is now not responding to communication.

I'm weighing up the next step at the moment, including footing the bill to pursue and expose the whole racket.

[NSReeders]

Thank you Dave. All in all it seems the whole debt review system is not so great after all. Yes we get outselves into this situation but we're working very hard to fix it and what has been set up to assist people like us is failing dismally. We had our car repossesed too when 3 burly men arrived and basically forced my husband to sign papers to hand over his car. He got nervous and signed...only to find out later we could've said no and somewhere in the fine print it was supposedly printed we are willingly handing it over and not being forced. We were fortunate to have a family member get our car back now we just owe the family member more money as nothing was explained properly.