WHY DO OUTSTANDING BALANCES ON THE STATEMENT FROM MY PDA AND CREDITORS DIFFER?

WHY DO OUTSTANDING BALANCES ON THE STATEMENT FROM MY PDA AND CREDITORS DIFFER?

We’ve received many questions from our clients under debt review about this topic. You might have wondered about it too and need some answers.

The balances on the statements issued by your debt counsellor, which come from the Payments Distribution Agency (PDA), are just estimates. First, the account information your debt counsellor (DC) enters into the PDA system must be accurate. If not, the balances will differ. Additionally, balances can vary because payments are processed by the PDA and credit providers at different times. Credit providers apply payments to your account a few days after the PDA makes them, which affects the interest calculated and results in differences in the outstanding balance.

Credit providers might also add charges that the PDA isn’t aware of, which may need to be manually adjusted. Therefore, consider the balances on PDA statements as estimates. Your debt counsellor needs to call the credit provider to get the latest balances and update the system regularly. It’s normal to have up to three months of payment differences. At Simunye Debt Advisory, we call credit providers and update balances every six months. This benefits our clients by keeping balances current and allowing us to prioritize accounts with the lowest balances for quicker debt review exits when clients have extra funds.

According to debt review guidelines, the debt counsellor doesn’t pay the credit providers directly or receive money from consumers. The debt counsellor uses a PDA and instructs it on which credit provider to pay and how much. The PDA statement shows how the payments are distributed.

If you want to know the balances on your accounts under debt review, please feel free to contact us by providing your details for a quick and free callback. Our consultants will reach out to your credit providers on your behalf.

WHY DO OUTSTANDING BALANCES ON THE STATEMENT FROM MY PDA AND CREDITORS DIFFER?

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