SMALL payments of less than R200 will be charged R5 (VAT incl) each.
MEDIUM sized payments (R200 – R500) will be charged R10 (VAT incl) each.
LARGER payments of over R500 will have a charge of R15 (VAT incl) each.
PREVIOUS FEE STRUCTURES
This is not the first time the fee structure which PDAs are allowed to charge has changed. If you
were wondering if this is a big change from before you can compare the upcoming structure to
the various previous fee structures that have been in place over the years.
FEES BEFORE JUNE 2008
R5.00 for each payment between R1.00 and R200.00
R10.00 for each payment between R201.00 and R500.00
R30.00 for each payment above R501.00
FEES FROM JUNE 2008 TO 31 JAN 2011
R7.00 for each payment between R1.00 and R200.00
R15.00 for each payment between R201.00 and R500.00
R25.00 for each payment above R501.00
FEES SINCE FEBRUARY 2011
3% of the distributed amount (as per the DCs Plan) with a min of R50.00 and Max of R500.00
excluding VAT.
So, you can see that, while the new fee structure is not totally dissimilar to what has been charged
in the past, it is a probable income reduction for the PDAs. Particularly will this mean a big
change in income for PDAs as the amount of different accounts reduce (this normally happens
as a smaller accounts are settled and only a vehicle or bond account is eventually left over). In the
past the 3% payment stayed the same even though less and less creditors were receiving funds.
Now their income will reduce with each credit provider that is settled. Of course, the PDAs offer
more than simply a payment from one account to several. They also offer reporting, support,
computer programs and DC assistance etc. The PDAs are discussing with the regulator and DTI
how the pricing structure can be adjusted to reflect these services. At the recent NCR workshop
with credit providers and Debt Counsellors it was indicated that since the NCR has not issued
any official certification to any of the applying PDAs as yet, they (the PDAs) are not charging the
fees as required of certified registrants. At the same time it was indicated that the NCR were busy
finalising the registrations. When that happens shortly, consumers can expect the fees they are
charged to change as per the new structure.