Debt review account out of hand

guitarist28

Well-Known Member
Joined
Jul 30, 2008
Messages
109
Hi guys.

I am here asking for advice on behalf of someone.

Maybe the big brains here can provide some ideas. Thanking you in advance.

A family member, lets call them JR, unfortunately had to go under debt review in 2015.

One of the accounts included in the program, at the time of inception, was around R99k.

Everything was signed and sealed, and the total repayable over the period of the program (10 years), for this specific account, was pinned at R220k. Court stamped, whole shebang.

Last week JR got notified by the debt review company, that the account in question, is at present running in excess of R300k, at an interest rate of 28%. JR has however been paying diligently without missing payments. Essentially, at this point, the account accumulates R7k in interest monthly. It's insane. It's way above what the monthly agreed payment is.

Is this legal? Or did someone's math fail them during the negotiations?

Surely the repayable amount as per the court consent order is binding?

Sadly the debt review firm "can't do anything about it", and wants JR to go sort it out with the credit provider themselves, which is laughable as well.

Is is best to go see a lawyer?

Advice appreciated.
 

Pho3nix

The Legend
Joined
Jul 31, 2009
Messages
29,036
Follow steps outlined here : https://www.google.co.za/amp/s/www....handle-an-incompetent-debt-cousellor-20140408

Sounds like Debt Review company isn't paying over the funds to the companies they need too.

Speak to the company as well and ask for receipts that they've been paying the service provider

Whole point here is to keep the amount and interest rate down. Court order enforces this.

Else, say it's been more than 3 years and the debt is prescribed
 

acidrain

Executive Member
Joined
Jan 7, 2007
Messages
5,598
Doesn't sound like there was a proper debt review process. From my understanding of the process the counsellor would negotiate the interest and repayment plans with the credit provider. To negotiate a repayment plan that doesn't cover the interest sounds daft really.
 

Pho3nix

The Legend
Joined
Jul 31, 2009
Messages
29,036
Doesn't sound like there was a proper debt review process. From my understanding of the process the counsellor would negotiate the interest and repayment plans with the credit provider. To negotiate a repayment plan that doesn't cover the interest sounds daft really.

True but needs to be signed off by the courts as well
 

Pho3nix

The Legend
Joined
Jul 31, 2009
Messages
29,036
Doesn't sound like there was a proper debt review process. From my understanding of the process the counsellor would negotiate the interest and repayment plans with the credit provider. To negotiate a repayment plan that doesn't cover the interest sounds daft really.

True but needs to be signed off by the courts as well
 

muisnes

Senior Member
Joined
Mar 27, 2018
Messages
502
The amount of accrued interest on outstanding debt may not be more than the capital amount due.

Google the in duplum rule
 
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