The first client featured paid the first month then skipped a couple of months and then later decided to pay one more time.
After that payment she dropped out the process totally (it wasn’t covered in the Checkpoint interview but apparently the consumer unfortunately lost her job around this time and was unable to make any debt repayments).
In the show, the client revealed that she was surprised that DebtBusters offer “debt review”. She said that if she had known she was signing up for debt review she would never have signed up (on the Form 16 Debt Review Application form). Interestingly the feature shows the DebtBusters website being googled and showing the selected link: ‘DebtBusters: Debt Counselling and Consolidation’.
The client said that DebtBusters did not bring any relief to her. Unfortunately, the Checkpoint feature did not make it clear that the consumer had decided not to pay some months right at the start of the process which derailed the process. The consumer also seems to have forgotten the 50% payment reductions?
Benay Sager of DebtBusters says that consumers must remember that they have an obligation to pay their debts and debt review does not offer a payment holiday. Payments during debt review need to be made monthly and at the agreed amount. This is the arrangement and the figures set before the courts or National Consumer Tribunal (NCT).
Client number two also enjoyed the start of the debt review process and paid for 4 months before things went off the rails (due to her having to go on maternity leave and not being able to cover the agreed repayments).
The client and her husband had monthly debts obligations of over R6000 but was able to receive a reduced repayment plan via the NCT down to just under R4000.
The client said that they filled in all the forms (including the POA and fee structure) at the start of the process.
Then, unfortunately, the client was not able to stick to the planned repayment due to unavoidable changes to income. Sadly, the car finance company was not willing to make a plan with DebtBusters and they asked her to negotiate directly with the credit provider to see if they would assist her.
The client and credit provider were not able to see eye to eye either and the credit provider then began to threaten to take the car. At that point the consumer turned to an illegal, unregistered loan shark who charged her crazy interest rates and took advantage of her desperation. The car seems to have been saved but at the cost of being unable to carry on with the debt review (and all those nasty, illegal loan shark interest payments).
The client later went through what she had paid to the Debt Counsellor (and an insurance provider) and was surprised that professional fees were prioritised in the first few months of her debt review.
Checkpoint took the fees to the NCR and discussed them. They also asked DebtBusters about the fees.
‘The fees discussed…are all familiar to those who know the NCR’s guideline’
The fees discussed (application fee, initiation fee, restructuring fee, attorneys fee) are all familiar to those who know the NCR’s guideline about what they think Debt Counsellors should charge for their services.
A separate fee for insurance paid via the PDA was also mentioned but as those matters are FAIS matters between client and insurance provider DebtBusters could not comment. A small R10 fee (per person) was also paid by the couple to have access to an information and credit report portal.
It should be noted that the consumer was able to simply cancel their insurance or the access to the portal if they had wanted to.
What seems to have really surprised the consumers was how in one month the amount that was paid to the vehicle credit provider was the agreed R88 (and then from the very next month onwards went up to R2200 – which was not made clear in the Checkpoint feature unfortunately).
