Debt Collection through Debt Counselling

Within the course of rendering debt counselling and related debt relief services to over-indebted consumers, it became apparent that credit providers are resistant to co-opperate in the process. Moreover credit providers, through their attorneys, endeavour to prevent over-indebted consumers receiving any debt relief whatsoever. This is unfortunate as a harsh and high-handed approach to debt collection militates not only against the wellbeing of individuals and households, but also on the wellbeing of communities, towns and cities. Credit providers should take co-responsibilty for the over-indebted state of consumers in that they, in the first place, extended them credit.

The DebtSenseGroup believes that the National Credit Act will in due course beg a different and more responsible approach to debt collection. This will necessarily require that credit providers undergo a paradigm shift towards debt collection. Hitherto the approach to debt collection has been to instruct debt collectors or attorneys to collect debt and which, more often then not, does not result in desired outcomes, quite apart from the legal cost implications to credit providers. Even if a debt collection intervention is successful, it necessarily means that the credit provider who successfully initiated debt collection procedures against a particular consumer, would have benefited at the expense of such consumer’s other creditors.

By embracing the debt review process, it is suggested that credit providers consider entering into a partnership of purpose with the DebtSenseGroup by instructing the latter to collect their debts. This, particularly more so as the DebtSenseGroup will , upon receipt of such instruction, engage the defaulting consumers concerned appropriately and objectively develop a payment plan with regard to not only the consumers financial circumstances, but also with regard to their other debt obligations. This methodology represents a win-win to all parties concerned, particularly also as the payment plan that stands to be developed by our debt counsellors, will ultimately be converted to an order of court.

The further benefits of such an approach to debt collection is that it is non-confrontational, credit providers are seen as being socially responsible and maintain their relationship with consumers. In addition, credit providers are not exposed to any legal or collection costs whatsoever.

For further information please contact our Business Manager, Morne at:

Email: morne@debtsensegroup.co.za

Cell: 083 635 1613

Debt Collection through Debt Counseling is a better way.

Debt Collection through Debt Counselling is a better way.

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