Debt Mediation

What is Alternative Dispute Resolution?


The National Credit Act defines ADR as a process that involves the resolution of credit disputes through conciliation, mediation or arbitration. The NDMA applies Mediation to assist consumers and credit providers and debt collectors to resolve arrears, legal actions and other related credit disputes. Mediation is cheaper and quicker as it does not involve the courts but relies on parties sticking to any agreement or arrangement made.


With credit agreements that are regulated by the National Credit Act (NCA), the legal process usually commences with a section 129 notice that credit providers are obliged to issue to you once you are in default for at least 20 business days. If 10 business days elapse without you responding to the credit provider, the credit provider is at liberty to proceed to issue a Summons and take judgment against you.


Once you have received a section 129 letter you have the option to refer that specific credit agreement to a debt counsellor, an Alternative Dispute Resolution Agent, Consumer Court or Ombud with jurisdiction. The intention is that the credit provider and yourself resolve any dispute related to the agreement or agree on a plan to bring the arrears up to date.


How do I get help?

We realise that debt mediation may come across as confusing and complicated.In order to make the process as simple for you as possible, have a look at the steps you need to take, in order to ask for assistance.

Step 1 Call the NDMA on 086 111 6362 and ask for a Financial Wellness application form or send an SMS Call Back to 44238 with the word “Application” and “your Name and Surname” (R1.50/sms) OR go to our website and complete the Free “Contact Me” form OR E-mail the NDMA at and ask for assistance
Step 2 Complete an application and consent form to ensure that your credit providers know that you have agreed to make use of the NDMA’s services.
Step 3 Once the application form is received the NDMA will contact you to discuss your information and where necessary request additional information to complete an income and expenditure (budget) for you and assess your situation.
Step 4 After the assessment the NDMA Mediation team will contact you to discuss possible solutions with you and highlight the advantages and responsibilities of each solution.
Step 5 After you have selected a solution the NDMA Mediator will explain the process of engaging with your Credit Providers.
Step 6 You will need to agree to the new arrangement and solution and commit to the plan before it is documented and implemented.
Step 7 The NDMA will monitor your plan and you are welcome to call you mediator at any time to discuss your plan.