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More and more consumers find themselves in a situation where they cannot afford the basic necessities; like rent, food and transport fees due to high debt repayment obligations. In some cases, these debt repayments make out 78.2% of the total monthly household income.
The Affordable Distribution Assessment Service offers
The Credit Legal Pro Affordable Distribution Service was specifically designed to assist consumers to start their journey to financial freedom as they embark on a route where all their creditors are still being paid, but in line to what the consumer can afford.
The consumer needs to voluntarily enter the multi-step process to have one lump-sum deducted from their bank account and then distributed by a third party to all their creditors.
Consumers must be qualified to enter the Affordable Distribution Service Agreement. If they do not qualify for the specific service; then Credit Legal Pro will still assist them through the standard Restructuring Negotiation Service offer.
The qualifying criteria include
The first phase to the Voluntary Distribution Service offer is through the Voluntary Distribution Assessment (At the bottom of the Product List in the Take-on process).
Terms you will encounter during the take-on process
Benefits to the consumer
- Consumers with a small surplus can now afford repayments on their debt and get financial freedom.
- Consumers can build up a reserve fund through the Affordable Distribution process to settle accounts sooner.
- Credit Legal Pro applies the distribution of funds based on a monthly installment to the creditor, in proportion to what the consumer can afford.
- Statements will be provided to the consumer quarterly (every 3 months) to indicate how much has been paid, which creditors were paid and what their current outstanding balances are.
- The Affordable Distribution Service is not a court order and therefore the consumer still has credit rights.
- Only one debit order is deducted from their bank account by Credit Legal Pro; therefore they save on banking charges.
- The money is then distributed to the consumers’ creditors by Credit Legal Pro via a third party.
- Credit Legal Pro handles all requests, issues, queries and harassment from creditors and collection companies.
- The negotiations with the consumers’ creditors for lower instalments and longer terms, are handled by Credit Legal Pro.
- The consumer gets a detailed financial assessment with a payment plan and all legal agreements will be instituted between Credit Legal Pro and the creditors, on behalf of the consumer.
This payment is determined by the Legal and Administration Department in each Credit Legal Pro Franchise and quoted in accordance to the specific consumers’ need.
It is a process where the consumers VOLUNTARILY select Credit Legal Pro to DISTRIBUTE their monthly installments (debt repayments) to their creditors. Credit Legal Pro acts as a PAYMENT DISTRIBUTION AGENT (PDA).
Our Credit Legal Pro Debt Attorney will assess the consumers’ credit situation and firstly qualify the consumer for the AFFORDABLE DISTRIBUTION SERVICE. Once the consumer is qualified; a payment plan will be drafted and negotiations will start for a reduced payment amount and prolonged terms on behalf of the consumer.
The Administration team will ensure that the agreed amounts are distributed to all the consumers’ creditors on a monthly basis on the newly agreed payment plan.
NO, the consumer will not be listed at the Credit Bureau as it is an informal and voluntary agreement. The Creditors may still list the consumer as a slow paying client; however this is a more positive status at the Credit Bureau that “Default”, “Handed Over”, “Adverse” or even “Judgment”.