HAVE YOUR PDA FEES
CHANGED?
With changes to the National Credit Act made last year by
the National Credit Amendment Act one aspect that was set
to change was the fees charged by the Payment Distribution
Agencies (PDAs).
These are firms which distribute funds on behalf of consumers to their various credit providers
in accordance with the payment plan set out by the Debt Counsellor. Consumers have the right
to distribute their own funds but most would struggle to do so in the right amount, to the right
account, at the right time, with the right reference each month as the plan shifts and changes.
Use of a PDA reduces confusion and increases accuracy of payment amounts. It also allows for
good record keeping should disputes arise.
When the changes were first announced the PDAs (who have previously operated under a service
level agreement with the NCR and were not required to be ‘registered’) were concerned partially
about the reduction of income as a result of the changes. Their main concern mainly focused
on the timelines for payments which were published with the amendments as it leaves them
exposed to returns and disputes and the loss of revenue as a result. In many cases they would
have to pay funds over before they had even received them (cleared), never mind if the consumer
later went and reversed them. In such a case th