NCR Discuss PDA Fees

No PDA Fee Change Yet

At the Cape Town, National Credit Regulator Workshop with Debt Counsellors Ms Kedilatile Legodi (who is Manager at the Debt Counselling Department) addressed the topic of PDAs.

While discussing the amazing amount of money that is paid via PDAs to credit providers she also mentioned the issue of the new fees. Recently the industry was informed of the various PDA’s plans to change to the new fee structure as per the NCA (amended). What came to light is that none of the PDAs are currently registered (though very soon). She said that their applications were all going ahead and the NCR was happy with their applications but they had asked for some additional paperwork.

When asked for information regarding new PDA registrations (by new entities previously not operating with NCR service level agreements) she replied:”No comment“. It is rumored that 2 new players may be entering the market.

One of the current stats that suprised some, was that it seems  – according to the NCRs estimates – that only half the people currently under debt review make use of a PDA. While in the past this had not been allowed (but was done anyway by many) the amendments to the NCA makes allowance for consumers to manage payments to all their credit providers and for them to adjust payments according to the complicated years long Debt Counsellor proposals and court orders.

Ms Legodi was asked if the new fee structure was then in effect and replied that it was not in effect by any registered parties yet. This makes sense. None of the current NCR recognized PDAs are registered (though any minute now) thus they have not switched to the new fee structure yet. The PDAs have asked that Parliament and the DTI reconsider the fee structure but have indicated their willingness to abide by the amended NCA should their registration come through.