Legitimate debit orders disputed by consumers under debt review and reversed by credit providers will place payment distribution agents (PDA) that distribute these payments to creditors, out of business and threaten the entire debt-review process, according to two firms. The National Payment Distribution Agency (NPDA) and DC Partner, both PDAs in terms of the National Credit Act, have made an urgent submission to the Department of Trade and Industry, requesting the five-day rule be reconsidered and PDA fees be increased in line with the cost of distributing payment. PDAs service debt counsellors, consumers and credit providers, enabling consumers to make a single payment in respect of their outstanding debt, which the PDA distributes to multiple creditors. In terms of the National Credit Amendment Act, PDAs must distribute payments within five days. Consumers have up to 40 days to dispute debit order payments to PDAs. Banks, cognisant of consumers who have been hit by illegal debit ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.