What is alternative debt resolution?

Shutterstock [http://www.shutterstock.com]
An over-indebted Fin24 user wants to know about alternative debt resolution. She writes:

I am over-indebted. I found a company on the internet which says it can reduce my monthly repayments. They call it alternative debt resolution. The company's name is Accord Debt Solutions. I just want to know if you've heard of them, because according them it is not debt review.

Renee Marais, an independent debt counsellor in Pretoria (NCRDC1780), responds:

Alternative debt resolution agents may only act on one credit agreement at a time and not your whole debt portfolio. They are currently not regulated by the National Credit Regulator, and  no provision is made for them in the National Credit Act 34 of 2005. 

To quote the act:

"Section 44 of the National Credit Act 34 of 2005 applies:
(2) A person must not offer or engage in the services of a debt counsellor in terms of this Act, or hold themselves out to the public as being authorised to offer such service, unless that person is registered in such terms

Debt counsellors may not in terms of section 46(4) (c ) be engaged in, employed by or acting as an agent for a person that is engaged in -
(i) debt collection
(ii) the operation of a credit bureau;
(iii) credit provision."

An ADR agent may not offer the services as set out in the act if they are not registered debt counsellors, and may not "restructure" your debt. 

If, for example, you have a problem with Bank A account 123, they may only assist you in solving the problem with Bank A account 123. They may not restructure your debts with bank A, B and C as well as your accounts with department stores, etc.

My advice is for you to please contact the NCR on 0860 627 627 and speak to one of their specialists, so that be sure to get the possible best advice. 

- Fin24

Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.

Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.  



 
We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
ZAR/USD
14.54
(-0.01)
ZAR/GBP
20.52
(+0.09)
ZAR/EUR
17.67
(+0.04)
ZAR/AUD
11.55
(-0.42)
ZAR/JPY
0.14
(+0.56)
Gold
1796.30
(-0.51)
Silver
27.66
(+0.08)
Platinum
1251.50
(+0.32)
Brent Crude
64.18
(+0.19)
Palladium
2432.00
(+3.87)
All Share
66200.76
(+0.42)
Top 40
60747.41
(+0.42)
Financial 15
12354.99
(+0.99)
Industrial 25
86550.38
(-0.10)
Resource 10
66735.02
(+0.89)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1003 votes
No, I did not.
52% - 2506 votes
My landlord refused
28% - 1341 votes
Vote