Debtfree May 2017

SELF SABOTAGE
Who Handles The Money?
Some consumers think that the Debt
Counsellor will handle their money.
This is not true. This misconception
makes some consumers blame the Debt
Counsellor for things to do with their
payments to creditors. Debt Counsellors
do not touch the money.
The National Credit Regulator (NCR)
has registered three regularly audited
entities to handle money. They are called
Payment Distribution Agencies (PDAs).
The law allows for payments to be made
either by yourself (which is a lot of work)
or via a PDA.
Many consumers mix up the identity of
their PDA with the Debt Counsellor. If a
credit provider collections agent looking
for commission on a collection tells
them (incorrectly) that their debt review
payment has not happened [it will have
been made] then the consumer thinks
this is the fault of the Debt Counsellorthe
Debt Counsellor who does not
handle payments; the Debt Counsellor
who never touches the money.
Get to know your Payment Distribution
Agency. Get to understand their role
in the process. Knowing who they are
and that the NCR audit them monthly
will give you confidence that payments
are being made and this will prevent
you falling for misinformation from
unscrupulous collections agents or
worrying about an incorrect balance
showing from a credit provider.