Debt counselling gone horribly wrong

[Citizen X]

Okay, this is indeed messy in that one needs to establish who the parties actually are and what practical legal remedies are available. I’m assuming that summons for debt has been sued out? Based on what has already been posted, This is my findings:
1. There are tow other areas of law, both of which I’m not proficient in, but which nonetheless may bring about some retribution one way or another;
2. Estoppel: Estoppel is a doctrine which operates in the following circumstance, when one person (Ashley Van Sensie )represents to another person (Mr’s X) that a certain set of facts exist( You under debt review and I’m paying your installments) and the other person(Mr’s X) acting on the strength of that representation altered her legal position to her detriment. The person making such a representation is precluded or estoppd from asserting that a different set of facts actually exist. The idea is to be put back into the financial position one would have been in had the misrepresentation not taken place;
3. Standard bank must be shown that it is also in their best interests for protecting their brand to be a fellow plaintiff with Mr’s X and also sue for unjustified enrichment. In practice the following requirements must be met: 1: The defendant must be enriched, 2:the plaintiff must be impoverished, 3:the defendant( Andre Snyman )must be enriched at the expense of the plaintiff(Mr’s X) and the enrichment must be sine quasa(unjustified). Here we essentially looking at the transfer of value from one estate to another where such transfer from one estate has no sufficient legal ground. i.e. Enrichment is sine qausa when there is no sufficient legal ground for teh transfer of money to Andre Snyman or for the retention of that money in Andre Snyman’s estate.
4. Estoppel can also be raised/pleaded against Andre Snyman Credit assist,e should be precluded alternatively estopped from asserting that they not responsible for this account.
i'm not sure if the staff of Standard Bank had escalated this matter to their CEO, since this matter is in the public interest, the CEO of Standard Bank should get personally involved here!
What is both heart wrenching and cause for concern is this: When you subject yourself to the process of debt review you already at your wits end as a human being. You simply want a practical way forward, a way that allows you to pay what you can and thereby prevent the creditor from either repossessing your asset or obtaining judgment against you. Both eventualities have far reaching consequences. So, there you are, you subject yourself to the legally endorsed process of debt review, you go to a registered debt counselor. You have every right to expect nothing less than integrity from this person/organization. Instead of getting the anticipated resolution you get taken for a ride. Here’s the thing, we use terms such as “fit and proper,” to be criteria for admission to the legal profession and no doubt the profession of debt counsellor. You may be fit and proper when you start but as South African history has clearly demonstrated these fit and proper people can become rogue elements. Just recently in the headlines two acting magistrates were involved in an armed robbery!

Disclaimer: Please don’t take my advice, it will be to your detriment!!!!

[Darkangelyaya]

I have had a similar experience as the X's, with Cleardebt, when I was diagnosed with breast-cancer.
The problem in my case, however, was blatant lies being told to me - maybe because of my 'fragile state', I do not know.

Suffice to say that I was focused primarily on fighting for my life, and not double-checking legal issues - after all, the debt counselor was there to lighten the financial stress a little, not so? (I had also paid R10 000, for legal fees etc, upfront).

When I finally got to my senses, and felt ready to start actively working again, and paying the full installments due, I first went to see the debt counselor. He had my file open in front of him, paged through it, and told me that I was lucky because none of my creditors had terminated yet. Happiness was me, and for the next three months I diligently paid my agreed total over to them.

Then one day, by chance, I drove by one of my properties I was renting out, and noticed a thick wad of documents stuck in the gate. It was a Notice of Motion document from Standard Bank, with a court date four days from the date I found it. It turns out that they had already terminated three months before the day that I was in his office. And they had not received a single repayment in six months.

I received absolutely no assistance from the NCR whatsoever, even after written requests. When I did phone, they made me feel worse than when I started debt review in the first place! (As did the friendly useless staff at Cleardebt).

It took almost three months more, before the (three month's installments) money was paid back to me, minus a 'handling fee'.

I almost lost everything as a result. I had to sell my trucks, equipment, and even furniture to save my property and vehicles.

The sad part is that had I used the money paid over to the debt councilors to pay my creditors, I never would have been in that situation in the first place.

Once again, a brilliant idea with human best interest at heart, has been turned into a money-making racket designed to bleed you dry when you are at absolutely the lowest point ever.

[meldasilva]

When I was in the retail industry, HR always maintained that the only way you will reduce shrinkage is to hire honest people, they added...but how do you know who is a honest person. An adage from that time holds true, " a new broom sweeps clean." This is certainly not the first horror story I've heard about debt counsellors. I don't want to disparage an entire industry but it seems there are many rogue elements in the debt counselling industry. They know that you vulnerable and scared when you come to see them!!

This is true that there are rogue elements and this is why you should seek out debt counsellors who belong to the Debt Counselling Association (DCASA). They are bound to a code of conduct and if tehy do not deliver you can go to the association for help.

[AndyD]

The problem with any industry association is that it's funded and supported by it's members so there's always a conflict of interests when it comes to policing conduct. End result is that the customer comes short every time.