How much does a Debt Counsellor cost in 2024?

The price of a Debt Counsellor can differ relying on the precise scenario, your new diminished installment and the overall debt owed. Nevertheless, the Nationwide Credit score Regulator (NCR) in South Africa has established pointers outlining the charges that debt counsellors can cost.

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Utility Payment

This can be a flat payment to cowl the prices of the debt counsellor to course of the finished debt Overview software.

Regulated Value – R50 vat unique

Cost Due Upfront and in full.

Administration Payment

The Debt Overview administration payment is a regulated once-off flat payment which will get charged by the debt counsellor. This payment is for administering the next processes:

Session with the patron. The session is the reason of the Debt Overview course of and an evidence of the regulated charges.

Notifications to credit score suppliers advising them that the patron has utilized for debt assessment. Additionally, often known as the Kind 17.1 Course of

Capturing the customers’ particulars on the NCR Debt assist system

Attending to any debt Overview rejections (17.2 rejection) which can embrace

Notifying the patron and credit score suppliers and the rejection

Updating the NCR Debt assist system

Compliance with regulation 25. Regulation 25 of the Nationwide Credit score Act: If a debt counsellor finds {that a} client just isn’t over-indebted and makes a discovering in part 86(7)(a), the debt counsellor should present the patron with a letter of rejection

Regulated Value – R300 vat unique

Cost Due Upfront and in full.

Debt Counselling Restructuring Payment.

The Charges beneath debt counselling are aligned to the outcomes of a full evaluation of the customers’ monetary info and the next processes embrace:

Proposal preparation for credit score suppliers’ perusal

Restructure the customers’ debt on the debt counsellors PDA profile

Negotiations with creditor suppliers which incorporates

Negotiate diminished instalments

Negotiate diminished rates of interest.

Cut back or change insurances

Submit last proposals to credit score suppliers and the patron

Drafting, submitting and supplying of debt counselling paperwork to attorneys to draft courtroom functions.

Updating the NCR Debt assist system

Attend to any switch request from customers

Lawyer instruction to draft courtroom functions

Filling of NCT functions within the instances of consent orders

Attending to withdrawal request from customers (17.W course of)

Prices – The restructuring payment is the same as the distributable quantity of no more than R8000 for a single applicant and R9000 for customers married in group of property.

In case your new diminished installment is R1500 the restructuring payment & Authorized payment may also be R1500. Which means that you gained’t be required to pay something past the quoted quantity, as all charges are already included on this new determine.

The Nationwide Debt Overview Middle

In different phrases, the primary restructured instalment will receives a commission to the debt counsellor. The above limits apply

Cost Due: This primary fee will receives a commission over to the debt counsellor for providers rendered.

Reckless lending payment.

A debt counsellor will attend to Reckless Lending Assessments and investigations and supplying reckless lending paperwork to attorneys to draft affidavits on the evaluation end result.

Value R1500

After Care Payment.

Debt counsellors will monitor your debt counselling progress and attend to the next when you beneath debt assessment.

Kind 17.2

Overview of the customers’ monetary scenario

Attend to any fee queries

Attend to the clearance course of which incorporates securing paid up letters

Attend to the 17. W course of. (withdrawal from debt counselling by the patron)

Attending to the replace of the NCR debt assist system

Prices: 5% of the distributable quantity or an quantity of no more than R450 monthly.

Aftercare charges won’t ever exceed R450. If the quantity exceeds R450pm question the quantity with the debt counsellor and the NCR.

Cost Due month-to-month will get deducted from the debt Overview restructured quantity.

Nationwide Shopper Tribunal Submission Payment.

A debt counsellor will submit your debt counselling software with the NCT to get a consent order.

Prices R 621.14 once-off and that is excluding the NCT filling payment. Presently, the NCT submitting payment.

Lawyer Authorized Charges

Equal to your month-to-month restructuring quantity ought to your matter be reffered to the Justice of the Peace Courtroom.

A month-to-month Transactional Cost Distribution Payment (PDA) as per the NCR

Be aware: You’ll not pay for Lawyer Authorized Charges in case your matter is shipped to the Nationwide Shopper Tribunal visa versa in case your matter is shipped to the Magistrates Courtroom. Additionally, you will not pay the Reckless Lending payment should you didn’t instruct the debt counsellor to research reckless lending.

The Nationwide Debt Overview Middle