When our clients ask us about debt mediation advice, our response is always the same.
The National Credit Regulator (NCR) and the National Credit Act (NCA) uphold your consumer rights, capping debt interest, ensuring you don’t pay for prescribed debt and protecting you from default judgments, repossession, reckless lending and unlawful garnishee orders.
These are just a few of the numerous ways in which debt review protects you.
Debt mediation does not observe the NCA and is not regulated by the NCR. Whereas debt review was introduced by the NCA and official debt counsellors are registered with the NCR, so their activities can be monitored.
Be aware that debt mediation advice is provided by banks, microlenders and credit retailers. Moreover, this unregulated system was designed and funded by them. Demanding the question, just how impartial is debt mediation advice? Would a predatory lender protect you from reckless lending? The answer goes without saying.
Creditors may encourage you to opt for debt mediation advice, touting the fact that it’s free. However, realise that it’s voluntary and you are not obligated to accept debt mediation advice.
Over-indebtedness is no laughing matter and that’s why it calls for the protection of the law. Debt review is an official legal process, with rules in place that protect your rights. Contact NDA today, if you’d like more information about debt review.