When a consumer applies for debt review and the negotiation has been approved by all parties involved, a payment distribution agency is contacted to administer payments to the creditors.
As a consumer, you are placing a great deal of faith in your PDA to adhere to your agreed upon payment schedule and to administer your payments effectively and on time. Choosing the correct PDA is thus one of the most important steps in the debt review process.
Always research the agencies as thoroughly as you can. Ask your debt counsellor about them, if you know anyone under debt review, ask them about their experience with the PDA so far. You have the right to a detailed report every month from your PDA, and there are currently only two PDA’s that provide this service consistently.
Although you as the consumer have entrusted the debt review process to assist you in managing your debts, they remain your responsibility and as such it is important to be vigilant about where your money is going. A report from your payment distribution agency can also help you if a creditor contacts you about lapsed payments. Having proof of payment and filing it diligently every month will make your time under debt review stress free and easy.
Your money does not go to your debt counsellor, it is paid directly to your payment distribution agency and you have the right to see these banking details and verify that they are the ones receiving the money. Just like debt counsellors, PDA’s must also show NCR accreditation, and you have the right to inquire about it whilst under debt review.
Article written by: Andrea van Tonder 03-2013