August 2021 IDM Special Edition

DEBT VADER
Here are just a few of the problems that we commonly see:
Debt Counsellors:
Debt review, like most businesses, is driven by profit. Debt
Counsellors would not bother to work in the industry if it was not
possible to sustain a living from doing this work. With the current fee
structure, signing up a consumer is more profitable than keeping a
consumer, this means that when a consumer first gets introduced to
debt review, he is often promised the moon and the stars.
As soon as the consumer pays the Debt Counsellors’ fees, the
incentive for the DC to continue providing excellent service,
disappears. So, what happens? Disappointed consumers, who are
entitled to the very best, especially when it come to their livelihood,
often try to cancel the debt review process because of bad service.
Credit Providers:
The Act envisioned a debt review system where credit providers
would act in good faith and eagerly participate in the debt review
process. Credit providers however often fail to respond to Debt
Counsellors’ requests for even a simple certificate of balance, and
many simply fail to respond to restructuring proposals.
Failure on the part of credit providers with these basic things,
hinders the debt review process, which then leads to termination of
accounts (by these same credit providers or others) and often results
in consumers not being able to place certain accounts under debt
review, which in most cases was the reason they applied in the first
place.