Do you have a contract with your PDA?

If you are a debt Counsellor or a consumer who is under debt review you might be making use of a Payment Distribution Agent (PDA).

It is widely known that while PDA’s are not mentioned in the National Credit Act the National Credit Regulator (NCR) want Debt Counsellors to use a PDA.

The question arises: 

If you are making use of a PDA , do you have a contract with them? As a service provider under the Consumer Protection Act there should be a service level agreement or contract in place between both parties (or all 3 parties in the case of a PDA and DC and consumer).

It is true that a DC gives instructions to a PDA on how to distribute funds for a consumer (according to their court order) but it is the consumer who has money at the PDA and should insist on the provision of a contract stipulating what a PDA will do for them.

At present no PDA offers a contract to consumers. Seemingly they do not wish to define what services they offer. This leaves them open to litigation under the CPA. Fortunately all PDAs carry insurance. Consumers should not be shy to sue these bodies should they fail to offer good service, as a lack of contract will play very much in to their favor.

Take control of your financial future with Zero Debt. Whether you are a debt counsellor or a consumer under debt review, it’s crucial to ensure that you have a clear service agreement with your Payment Distribution Agent (PDA). Unfortunately, many PDAs do not offer contracts, leaving consumers vulnerable. At Zero Debt, we prioritise your protection and transparency. Contact us directly at 086 111 3749 or connect with our supportive debt counsellors via our contact page. If you’re pressed for time, simply request a Free Call Back, and one of our experienced counsellors will reach out to assist you. Secure your financial well-being today with Zero Debt.