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Fortunately...

Payment Distribution Agents (PDAs) are a vital part of the debt review process in South Africa.

They collect consumers’ monthly payments and pay the correct credit providers as outlined in the payment plan. They are so organised and have such fancy systems that you might think it is impossible for a PDA to be bad at debt review.

Well, recently, one PDA (CollectNet) was deregistered by the National Credit Regulator (NCR) for failing to report back in time and other technical things. Thankfully, hardly any consumers were affected in any way.

‘Many of the challenges the PDA faced could probably have been overcome if the PDA fees issues had been sorted out a long time ago’

Many of the challenges the PDA faced could probably have been overcome if the PDA fees issues had been sorted out a long time ago. When operational costs have to be cut to the bone there is little room for hiring more staff, upgrading systems and even allocating resources to meet NCR requirements.

This incident is a bit of a wake up call for all working in the debt review space. A PDA that fails to meet NCR deadlines or is cash strapped potentially puts the entire industry’s reputation at risk.

Fortunately, our 3 existing PDAs not bad at debt review. In fact, they are world class and prioritise compliance, risk management and working closely with the NCR.

 

RATHER: For those in charge of such things, please adjust PDA fees to be sustainable for these critical industry role players who consumers rely on. Protect the process. Protect the consumer.