Will I have to pay for the service?

Yes – the service is not free, there are recommended fees laid down by the National Credit Regulator (NCR) and the fee guidelines are available from the NCR website at www.ncr.org.za. How these fees are paid is explained in the paragraph “ It is important to note” under the heading “Is debt counselling for me?”    


Debt Counselling Fee Guidelines Approved Fees
1. A Debt Counsellor may receive the following fees in respect of consumers who have applied for debt counselling:
1.1. An application fee, limited to the amount prescribed in terms of Schedule 2 (2) of the Act, recoverable directly from the consumer upon receiving an application for debt review; R50
1.2. A rejection fee of R300.00 (excluding VAT) in respect of consumers whose applications have been rejected in terms of section 86(7)(a); R300 (excl vat)
1.3. A restructuring fee of the lesser of the first instalment of the debt re-arrangement plan in respect of a consumer whose applications have been accepted in terms of 86(7) (b) or 86(7) (c).
       Maximum allowable fee for a Single Application (Once off) R6000 (excl vat)
       Joint Application (Once off) R6000 (excl vat)
1.3.1. 100% of the fee is payable at the first instalment. Yes
1.4. Should a Debt Counsellor fail to submit proposals to Credit Providers or refer the matter to a Tribunal or a Magistrate Court within 60 business days from date of the debt review application the Debt Counsellor has to refund 100% of the fee paid by the consumer (excluding the application fee). 100%
1.5. A monthly after-care fee payable to the DC 5% up to a max of R400 (excl VAT) for the first 24 months, thereafter reducing to 3% to a max of R400 (excl VAT).
1.5.1. Payment of the monthly after-care fee is to commence in the 2nd month after the amount in 1.3.1 above has been paid. Yes
1.6. Should the consumer withdraw from the process after completing stages 1.3 above, a fee equal to 75% of the restructuring fee as per 1.3 above is payable by the consumer. Yes
1.7. Legal Fees A legal fee for a consent order of R750. Any additional legal fees to be negotiated separately with the consumer and the DC must be able to produce pro-forma invoices.


Note: all amounts are excluding VAT