Verifying Your Debt
• Make
sure you actually owe the Debt as this Debt could have Prescribed, Reached
In-Duplum or sold to a third party with inflated balances.
• Ask
for proof such as original documents, account statements and copy of the from
inception and a Credit Report if you disagree with the amount demanded.
• Get
independent advice from Free Me if you are still unsure whether you have
to pay some or all of the Debt..
Example
• Original loan amount was R 75000 –
inception February 2008
• Consumer defaulted – @R 63000 paying
less than the instalment required
• In-Duplum reached – @R126000
• Consumers account now stands at – @R
283000
• Consumer has paid R 110000 towards
this account
• Free Me analysed the credit
statement and found various errors on the account statement
• Free Me offered a settlement of
R16000 and the Creditor accepted
• Free Me has claimed back over R
182000 for consumers
In-Duplum
Accounts has reached Induplum - Despite any provision of the common law or a credit agreement to the
contrary, the amounts contemplated in s 101(1)(b) to (g) that accrue during the
time that a consumer is in default under the credit agreement may not, in
aggregate, exceed the unpaid balance of the principal debt under that credit
agreement as at the time that the default occurs. Once the amounts referred to
in s101(1)(b) – (g) that accrue during the period of default, whether or not
they are paid, equal in aggregate the unpaid balance of the principal debt at
the time the default occurs, no further charges may be levied.
Section
101 – Interest, initiation fee, service fee, credit insurance,
default
administration charges, and collection costs
Prescribed Debt
Debt has prescribed- 3 YEAR PRESCRIPTION PERIOD APPLIES TO In short, according to the
Prescription Act, if, in the past three years you have not made any payment
towards settling a debt, acknowledged owing the debt in any way – including
over the phone – agreed to pay it, or been summonsed in respect of it, it has
prescribed, and you can raise this as a defense when asked to pay it. NOT ALL
DEBT PRESCIBES IN THREE YEARS
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