DC Partner Break Their Silence
Recently, the debt review industry and the public were shocked by a scandalous news article that was published saying that among other things, a company called Ubiquity AI was trying to put well-known Payment Distribution Agency, DC Partner into liquidation.
Payment Distribution Agencies handle the money side of debt review for consumers and provide helpful software to Debt Counsellors. A PDA will take a single lumpsum payment from a consumer each month and then split that payment into the many smaller changing figures that need to go to credit providers according to the Debt Counsellors plan each month.
Since DC Partner PDA helps hundreds of thousands of people and money is involved many people grew very concerned. The article did not have any comment from DC Partner in it and many wondered what the full story really is.
‘many people grew very concerned’
DC Partner’s Side of The Story
In an official comment, DC partner has now explained why they have been so quiet in the face of such negative press. They say: ‘DC Partner, a Payment Distribution Agency, licensed and registered with the National Credit Regulator, says that the dispute between itself and service provider, Ubiquity AI, is a private matter that will be managed through South Africa’s judicial system.
Because the matter actually seems to revolve around a dispute over what work was (or wasn’t) done and how much money is owed for what, DC Partner feels that they better leave things to the lawyers rather than head to the media.
Has A Liquidation Application Been Made?
One of the saucier parts of the news story is that the IT company intends to liquidate the massive PDA over the relatively small amount of money they say they are owed. It seems, however, that despite what the news story initially said that at least some of the information shared may be somewhat exaggerated. DC Partner has said that: ‘No application for liquidation has been served on DC Partner to date. Should one be brought, the company will defend it.’
The PDA has made it clear that ‘no request from any party within DC Partner was made to undermine the NCR’s authority or preclude the Regulator from performing any investigations’. They also have shared that ‘DC Partner is solvent and continues to operate as per normal’.
‘No application for liquidation has been served on DC Partner to date. ‘
This message has been shared by company representatives over the last few days to their many, long time, Debt Counsellor clients and has helped calm any nerves.
DC Partner also says that they would like to make it 100% clear that: ‘There are no risks to consumer funds as these are collected and safeguarded in ring-fenced accounts specifically designated for collection and distribution activities. These accounts, as mandated by law and regulation, are entirely separate from the operational business accounts and activities of DC Partner.’
That makes sense since the NCR regularly monitor and audit the various PDAs and their finances. This information will no doubt help calm consumers nerves who make use of their services.
”There are no risks to consumer funds as these are collected and safeguarded in ring-fenced accounts specifically designated for collection and distribution activities’