21 Sep How Debt Review Fees Work
Before you enter the process of Debt Review, you should understand the fees that form part of the process, for which you will be liable. Like any Debt Relief measure made available to struggling and over-indebted consumers, Debt Review is a personalized solution that helps you to pay back your debt and recover your financial stability, and all the associated fees are regulated by the National Credit Regulator.
Our Debt Review service at True North Debt is available to those with unmanageable debts, and the costs are fairly straightforward and transparent. The very first fee you will pay is your R50 Application Fee, which covers the submission of your complete Form 16 and helps us to assess your finances. This fee, together with your Administration Fee of R300, is available upfront and in full, and allows us to consult you on the details of the Debt Review Process, load you onto the DHS, deal with the rejection process should it occur, notify your creditors, as well as update the DHS, all in compliance with regulation 25.
Once your monthly payments have been restructured and proposals have been drafted and submitted, a Restructuring Fee is due within the first month. The cost of this is R8000 or the distributable amount for a single person (whichever is less) or R9000 or the distributable amount (whichever is less) for a person married in community of property. This fee covers us preparing and submitting your proposal, negotiating with your creditors to reduce your monthly payments, supplying your Debt Review documents to an attorney who will use it to draft a court application, and the updating of the DHS.
A Reckless Lending Fee, amounting to R1, 500, is payable for each Debt Review application. We collect this fee in the second month after you complete the written outcome of the reckless lending assessment. Also due in the second month after the rendered service is the Aftercare Feeof R500/5% of the distributable amount, which attends to your payment queries, the review of your financial circumstances, the clearance process and securing paid-up letters. This fee also covers withdrawal should you wish to do so.
There is also a NCT Submission Fee of R500 that must be collected from the restructured payment in the second month of restructuring your fees, as well as the agreed to Attorney Fee amount which was agreed to in writing between you and an attorney at the time you applied for Debt Review with our True North Debt team. The attorney fee is only due once one or more of your creditors don’t accept the new repayment plan proposal, or once the attorney attended the hearing of the court application, or once they have drafted your court application.
If you are not sure of these fees, one of our Debt Review experts will gladly answer any questions for you. Reach out to us and find out if Debt Review is the solution to your financial worries.