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FNB want Court Orders within 5 Days

In a recent communication with all Debt Counsellors FNB asked that granted Court Orders (for consumers debt restructuring) be supplied to them speedily to ensure that they capture these on their system as fast as possible. This will reduce the present problem that is being seen industry wide of what is called end balance differences. This is where the PDAs figures (they track payments and interest through the process) and the figures the Credit Providers have differ greatly. This is often simply because the creditor has not updated their system with the figures from the granted Court Order.

The Circular also mentioned what is called the cascading payment schedule. This is a list of each months payments to all creditors throughout the whole process. They mention that this should also be sent along with the Court Order or even included in the Court Order. The Circular says: “Where there is a cascading payment schedule, please include a copy of said Magistrate stamped schedule in the granted debt re-arrangement order.” Many Debt Counsellors do not like to include this schedule in the actual prayers of a Court Order since they feel it may mean that if a single one of the payments to any of the creditors at any time may invalidate the Court Order.

This means that the consumer may be at the mercy of the PDA (to pay the right amount each month as per the plan) or any creditor that adds extra fees and later demands extra payments (even for one extra month) to cover the debt (because of “end balance differences”).

 

Download the Circular here for more details: Court Order Circular 4 dated 5 Feb 2014