Another Credit Provider Rolls Out 15% Guideline
After the recent announcement by Sanlam that they would advise Debt Counsellors making pro-rata proposals for debt restructuring at 15% (at least) there was some concern that other credit providers may follow suit.
It seems these concerns may be valid as Direct Axis have just issued a notice in the same vein. They have suggested that to speed things along Debt Counsellors making proposals start their debt review proposals on Direct Axis debts at 15% minimum. This is a sweet spot for the credit provider and they feel it will save time if Debt Counsellors use it as a starting point to save time.
‘Credit providers are well within their rights to ask for full interest rates while under debt review but often make concessions’
Credit providers are well within their rights to ask for full interest rates while under debt review but often make concessions to speed up the process and save their clients funds or at least keep costs down. In the past, Debt Counsellors have even been able to get very good concessions for consumers using a credit provider piece of software called DCRS. This system will sometimes even reduce interest rates to 0% (for unsecured credit).
It remains to be seen if other credit providers will now follow suit with this preferred rate.