If you're learning about debt review, you might hear the term “PDA”.

In the debt review context, PDA stands for a Payment Distribution Agent. These are companies registered with the National Credit Regulator (NCR) to handle payments for consumers in debt review.

What Do PDAs Do?

PDAs make debt review payments simple.

Instead of paying multiple creditors individually, a consumer makes one monthly payment to the PDA, which then distributes the funds according to the debt review plan. This ensures payments are made on time and in the correct amounts, reducing errors and stress.

Do PDAs Charge Fees?

Yes, PDAs charge small fees based on the payment amount:

• Under R100: Free

• R100 – R200: R5 per payment

• R200 – R500: R10 per payment

• Over R500: R15 per payment

These fees cover tracking and distributing funds accurately as well are sending you statements monthly.

Do You Have to Use a PDA?

While you can pay creditors directly, most Debt Counsellors strongly recommend using a PDA because:

• Payment amounts, account numbers and references change during your debt review.

• One mistake in making payments can cause major issues.

• PDAs provide proof of payment and monthly statements.

• Even if you pay creditors directly, you still must use a PDA to pay your Debt Counsellor’s fees.

Are PDAs Safe?

Yes. Using a PDA is very safe and convenient.

The NCR monitors and audits PDAs all the time, ensuring consumer funds are handled securely. PDAs also have external auditors that make sure your funds are safe.

Beware of Scams

PDAs never change their bank details!

If someone asks you to pay into a different account, contact your Debt Counsellor and PDA immediately. Beware!

NCR Recognized PDAs in South Africa

Currently, the National Credit Regular approved PDAs are:

• DC Partner PDA

• Hyphen PDA

• iPDA

Using a PDA makes debt review easier, safer, and more efficient. Your Debt Counsellor can help you choose the best PDA for your situation.