Sign a POA with a debt counsellor to cancel debit orders

Why Ignoring Debt Notifications and Debit Orders Is a Costly Mistake

When a consumer joins debt review they normally sign a POA or Power of Attorney with their debt counsellor.

This enables the Debt Counsellor to do certain things on their behalf such as cancel a debit order.

Standard Bank now want to get a debt counsellor to either use the POA (shown below) or to have consumers cancel their debit orders themselves. This is often difficult because once the consumer enters debt review (and shows as such on the banks computers) some bank staff won’t deal directly with the consumer but require that the Debt Counsellor contact them. Then there are other staff who refuse to help the counsellor even though he has a power of attorney.

When applying for debt review be sure to talk to your debt counsellor about a Power of Attorney. Also discuss which accounts have debit orders against them.

If you’re struggling with debt and considering debt review, it’s crucial to understand the role of a Power of Attorney (POA) in managing your finances. At Zero Debt, our certified debt counsellors can help you navigate this process, including the cancellation of debit orders on your behalf. Don’t let bank procedures overwhelm you—let us handle the complexities. Take the first step towards financial freedom by calling us directly at 087 702 1738 or visiting our contact page. If you’re pressed for time, simply request a Free Call Back, and one of our supportive counsellors will reach out to you. Contact Zero Debt today and start your journey to a debt-free life!

FAQs and Answers

1. What is a POA in debt counselling?
A POA or Power of Attorney allows a debt counsellor to act on your behalf, such as cancelling debit orders during the debt review process.

2. Why is a POA needed to cancel debit orders?
Banks often require authorisation to cancel debit orders. A signed POA gives your debt counsellor legal permission to manage this on your behalf.

3. Can I cancel my own debit orders under debt review?
While some banks allow this, many refuse to deal directly with over-indebted clients. Your counsellor can assist if they hold a POA.

4. How does Zero Debt use POA to help clients?
Zero Debt uses your POA to liaise with banks, cancel unauthorised debit orders, and streamline the debt review process efficiently.

5. Will banks recognise the POA provided by Zero Debt?
Most banks accept the POA submitted by registered debt counsellors. However, there can be staff inconsistencies, which Zero Debt helps resolve.

6. What happens if debit orders are not cancelled?
If not cancelled, creditors may still deduct money, disrupting your new repayment plan. Zero Debt ensures proper cancellation via POA.

7. How do I sign a POA with Zero Debt?
During your debt review application, Zero Debt includes a POA form. You sign it to allow them to act on your behalf legally.

8. Where can I get help cancelling debit orders?
Contact Zero Debt to request assistance. Our debt counsellors can initiate the process and ensure protection under the National Credit Act.