Payment Distribution Agents

In terms of Section 86 (1) of the NCA, a consumer may apply to a debt counsellor to be declared over-indebted. Once declared over-indebted, the debt counsellor will re-arrange the consumer’s debt obligations and negotiate with the affected credit providers for a new repayment plan. These repayments are channeled via Payment Distribution Agencies to credit providers. The PDA is also responsible for the provision of monthly statements to consumers and payment schedules to debt counsellors, employers and credit providers as well as attending to queries from the respective parties.