Debt Counsellors work with Payment Distribution Agencies (PDAs), which are entities registered with the National Credit Regulator (NCR). PDAs play a crucial role in the Debt Review process by managing the collection and distribution of funds.

By working with PDAs, Debt Counsellors can ensure that the repayment process is efficient, transparent, and compliant with the National Credit Act.

Here’s a breakdown of their responsibilities:

Responsibilities Towards Clients:

1. Collecting Payments: PDAs collect a single, consolidated monthly payment from the client, as per the repayment plan agreed upon during Debt Review.
2. Distributing Funds: They distribute the collected funds to the client’s creditors according to the repayment plan, ensuring that each creditor receives the correct amount.
3. Providing Statements: Clients receive monthly statements from the PDA, confirming that payments have been made to creditors. This transparency helps clients track their progress.
4. Ensuring Accuracy: PDAs verify creditor account details to ensure that payments are allocated correctly and promptly.

 

Responsibilities Towards Debt Counsellors:

1. Streamlining Payments: PDAs handle the administrative burden of collecting and distributing funds, allowing Debt Counsellors to focus on supporting their clients.
2. Providing Reports: They offer detailed reports to Debt Counsellors, including payment histories and client progress, which help in managing cases effectively.
3. Facilitating Communication: PDAs act as a bridge between Debt Counsellors and creditors, ensuring smooth communication and resolving payment-related queries.