NCR Certification in terms of Section 25 of the National Credit Act

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About Us

Close Corporation registration number 2002/093341/23

Accord Debt Solutions CC registered during 2002 to assist debtors (Consumers) with, debt re-structuring, conciliation, personal financial management and secretarial services, where consumers were over committed with debt repayments, to the extent that they were unable to pay towards their day to day and or their dependents living expenses.

Consumers were further assisted to a certain the correctness of balances claimed and or the authenticity of agreements whereupon claims were based pertaining to creditors claims and or claims based in terms of court orders.

Over time Accord Debt Solutions CC developed electronic administrative systems that provide for efficient service delivery in accordance with agreements entered into.

Prior to June 2007 it was found that many creditors and or creditors representatives claimed balances in excess of what was provided for in terms of agreements entered into and or emoluments attachment order claims.

The National Credit Act provide for Consolidation finance and emergency loans as the only finance available to over-indebted consumers. Seeing as consolidation finance could allow for arrear instalments being brought up to date, Accord Debt Solutions concentrated on debt consolidation at rates less than consumers existing average contractual rates and secondly administering processes that could possibly allow for future consolidation finance and or deriving at a plan to bring arrear instalments up to date.

It was found that consolidation finance would only be effective where future consolidated loans instalments are affordable, consolidation interest is less than loans consolidated interest and correct settlement balances are obtained prior to consolidating outstanding balances. Accord Debt Solutions electronic and management systems provide for the re structuring of debt and the correct calculation of outstanding balances in terms of credit agreements and or judgments and also provide for the management of emoluments attachment order salary deductions, which system Accord Debt Solutions managing member claims to hold a copyright over. To sum up, the services provided

With effect from June 2007 ADS provided for alternative dispute resolution services. Since inception of the National Credit Act, Accord Debt Solutions provided services to establish the correct outstanding balances claimed by creditors and or their representatives, with the intention of either having consumers total debt consolidated, develop and agree on a plan to bring arrear payments up to date or to obtain housing finance where such finance is affordable and available. This done where it is found that consumers financial situation would improve after having debts consolidated and or it is found that consumers could afford housing finance.

During 2013 the Department of Trade and Industry published the draft National Credit Act Policy Review Framework

It Was Found That:

2.4.4.1.1 The success of the debt review process has been compromised by the lack of clarity in terms of processes, conflicting judicial interpretations and the availability of proficient debt counsellors. The lack of capacity and competency of the Magistrates Courts are also a cause for concern.

2.4.4.2.3 Statistical evidence show that many over-indebted consumers apply for debt counselling, very few consumers actually go through the process.

2.4.4.2.4 Statistical evidence shows that whilst a large number of consumers are over-indebted and many apply for debt counselling, very few consumers actually go through the process.

2.4.4.2.5 The logical conclusion is therefore that debt counselling is working, but only for a limited.

2.4.7.2.1 Provisions which allow for a more informal form of debt rehabilitation, whether through direct negotiation with credit providers to reduce interest rates, must be further emphasised in the enhanced policy.

2.4.8.1.3 A consumer is subject to the restraints of debt review until all the debts subject to the debt review have been paid.

2.4.8.1.4 Where a consumer has a long-term agreement such as a mortgage bond, the consumer cannot obtain a clearance certificate until the agreement is repaid even though the consumer may be able to afford the original instalment or even a higher instalment.

2.4.8.2.9 Debt Counselling is not a feasible option for all consumers particularly consumers with no income and no assets or low income and limited assets.

Also during 2013, the National Credit Regulator reviewed the Credit Industry Code of Conduct to Combat Over-Indebtedness in terms of section 48(1)(b) of the National Credit Act (NCA), wherein Credit Providers undertook in section 1.4 of the mentioned code:

"We recognise that where possible, over-indebted consumers should preferably obtain relief through consensual arrangements with their credit providers matched by reciprocal commitments from their side with the aim to allow them to recover from their financial difficulties."

During 2014, Accord Debt Solutions management team, legal representatives and electronic development specialist re-structured Accord Debt Solutions administrative process of service delivery to over-indebted consumers, to provide the most efficient service available as an alternative to debt review and or administration.

With affect from 2015 Accord Debt Solutions refer disputes to third parties and or legal representatives while concentrating on debt mediation and debt management services as an alternative to debt review and administration.