The difference between Debt Review (Debt Counselling) and Debt Mediation services rendered by Accord Debt Solutions CC.
Debt Counsellors may take upfront fees.
Accord Debt Solutions CC (Accord) and or their representatives do not take upfront fees.
Debt Counsellors could calculate unaffordable repayment terms to benefit creditors rather than over indebted consumers.
This done in terms of guidelines set out in Debt Review Task Team Agreements of 2010 Guidelines for Debt Review processes
Accord assure that consumers netto income less consumers necessary day to day expenses are calculated to allow for a substantial and living budget for consumers and do not use minimum requirements of debt restructuring guidelines and or repayment term extension limits as could be required for by debt counsellors in terms of the mentioned guidelines.
Debt counsellors must inform every registered credit bureau regarding consumers approved Debt Review application.
Accord is not required to provide any credit bureau with information pertaining to the debt mediation process. Accord assist consumers to institute proceedings to have irregular credit bureau listings removed.
Debt counsellors may issue proposals to court recommending that the Magistrate's Court make court orders relating to consumers restructured debt repayments. Such proposals could include Emoluments Attachment Order (Garnishee Order) against consumers salaries.
Such orders may include securitized debt like mortgage bonds and or lease agreements that could result in the terms of such agreements being extended resulting in such debt increasing drastically to the extent that outstanding debt can be more than the value of such security.
Accord do not issue proposals recommending that the Magistrates Court make any orders relating to consumers being over indebted and also do not recommend that Emoluments Attachment Orders be instituted against consumers salaries.
Accord Debt Solutions CC do not encourage the extension of securitized debt repayment terms and rather encourage consumers to pay more on such debt so that security remain security and do not become a loss.
Where a court has made an order relating to a Debt Review application, such an order will not be rescinded if the consumer find that the matter was settled by prescription or the debt was securitized and or the creditor claimed monies in excess of the agreement entered into.
Should it be found that a creditor has no legal claim against a consumer, after having entered into an agreement for debt mediation services with Accord, then such claim could be disputed.
Consumers under Debt Review, will not be allowed to apply for loans as set out in Section 78 (2) of the National Credit Act, like a school loan, student loan or an emergency loan.
Over indebted consumers under Debt Mediation could apply for such mentioned finance.
An application to a Debt Counsellor to be declared over-indebted may not be made considering a particular credit agreement if, at the time of that application, the credit
provider under that credit agreement has proceeded to take the steps contemplated in section 130 to enforce that agreement.
Accord Debt Solutions do assist a consumer with debt mediation after a creditor has obtained a court order to enforce a credit agreement.
Consumers under Debt Review may not terminate the process until such time as the debt, listed under such debt review application, is settled.
Consumers under debt mediation with Accord may terminate the agreement at any time and proceed to attend to their matters without Accord assistance.