Inaccurate and incorrect details
<p>I have utilized Debtsafe service for 2 years and 10months to date, principle debt started at circa 150k. After the time with them, I have paid circa R135K. </p> <p>The statements I receive clearly show that payments are being made and final payments( last distribution dates) are coming closer.</p> <p> </p> <p>Unfortunately, this is not the case, Statements from my creditors vary drastically from statements received via email and yet again they differ from the online application (which boasts a 24/7 up to date figures)</p> <p>On viewing this I contacted my counselor, she clearly mentioned that neither of these is correct and I need to request statements from Debtsafe and they, in turn, will contact my creditors !! the statements I have been receiving are INCORRECT.</p> <p>So what exactly are we using this service for? How is this entity looking after our finances if they are unable to let us know how much we owe at any time? </p> <p>I am somewhat shocked and disappointed that I did not notice this earlier as this is a group that makes its money of the trust of people in a somewhat "difficult" position.</p> <p> </p> <p>I have requested my up to date totals from the counselor but unfortunately, I can only assume the worst </p> <p> </p> <p> </p> <p> </p>
I refer to our telephonic conversation. We thank you for raising your concerns and please kindly find herewith our response.
Kindly note that the statements that you receive from your creditors will differ from the statements that you receive from Hyphen PDA. We issue a repayment proposal that effectively reduces the repayment amount but increases the period of payment. The Credit Provider’s statements will reflect a different balance and will reflect in arrears as you are not paying the amount as per the original credit agreement, you are paying a reduced instalment calculated according to a payment plan and the Credit Provider’s system may not yet be adjusted according to the agreed payment plan or court order.
Another reason why the outstanding balances are increasing and not decreasing is due to the fact that the monthly payment towards your creditors are less than the monthly interest charged by the respective creditors. According to all credit agreements, the interest is always paid first and then the capital amount. The balances will decrease once interest is paid in full. The amount you pay is calculated according to your affordability, according to a budget that you provided us with. Please understand that we can only pay the creditors with money that you have made available.
Please take note that interest is always payable and this cannot be stopped or reduced, the interest rate will stay the same as per your agreement with your creditors. The creditor is entitled to the interest rate agreed to on the original credit agreement subject to the provisions of Section 103(5) of the Act. This section limits interest that a creditor may charge on an account. The total interest, charges and fees the creditor is entitled to may never exceed the balance on the date of first default.
As discussed we will do full reconciliations on all your accounts.
You are a valued client and we do take your best interest at heart.
Kind regards
Heidi Bekker
TEAM LEADER
Best regards,
I refer to our telephonic conversation. We thank you for raising your concerns and please kindly find herewith our response.
Kindly note that the statements that you receive from your creditors will differ from the statements that you receive from Hyphen PDA. We issue a repayment proposal that effectively reduces the repayment amount but increases the period of payment. The Credit Provider’s statements will reflect a different balance and will reflect in arrears as you are not paying the amount as per the original credit agreement, you are paying a reduced instalment calculated according to a payment plan and the Credit Provider’s system may not yet be adjusted according to the agreed payment plan or court order.
Another reason why the outstanding balances are increasing and not decreasing is due to the fact that the monthly payment towards your creditors are less than the monthly interest charged by the respective creditors. According to all credit agreements, the interest is always paid first and then the capital amount. The balances will decrease once interest is paid in full. The amount you pay is calculated according to your affordability, according to a budget that you provided us with. Please understand that we can only pay the creditors with money that you have made available.
Please take note that interest is always payable and this cannot be stopped or reduced, the interest rate will stay the same as per your agreement with your creditors. The creditor is entitled to the interest rate agreed to on the original credit agreement subject to the provisions of Section 103(5) of the Act. This section limits interest that a creditor may charge on an account. The total interest, charges and fees the creditor is entitled to may never exceed the balance on the date of first default.
As discussed we will do full reconciliations on all your accounts.
You are a valued client and we do take your best interest at heart.
Kind regards
Heidi Bekker
TEAM LEADER
Best regards,