Recently, however, some Debt Counsellors are struggling to get acceptance of proposals back from Capitec Bank because they receive messages saying that the proposal (which in theory includes calculations done by DCRS – the BASA agreed calculation engine) do not stick to the NCR’s fee guideline regarding legal work.
The NCR fee guideline says that legal fees are only going to be paid in the month when the legal work is done.
While for most people this is month 2 of the process it is possible that this could be in any month during the entire process as the Act does not say when the legal work has to be done (in fact despite several amendments over the years it has never been amended from the word may to the must).
Also for consumers with tiny repayment amounts the legal fees may be higher than can be paid in one month. Eg. R500 debt repayment may not cover the amount asked by the attorneys.
The result is that consumer’s are struggling to get consent from all credit providers (due to this one credit provider).
‘it is costing Capitec Bank clients more money to get help’
This has the impact of forcing matters to go via the more costly magistrates court process. So, it is costing Capitec Bank clients more money to get help.
As you can imaging consumers and Debt Counsellors are also not happy about this.