Debt Mediation

Just a few years ago, in 2013, a debt relief process was introduced, the Voluntary Debt Mediation Solution (VDMS). Just as Debt Review is a debt relief process, the VDMS was offered at that time, as a method to help over-indebted consumers, however the process has been found to be problematic in a number of ways.

The Process is complicated and in-efficient

One of the major problems with Debt Mediation, is that the credit providers alone could adjust the consumer’s payment plan. This information is stored exclusively by the credit provider, and access to the information was not readily available.

This very nature of debt mediation, implicitly does not allow for combining debts from multiple providers, as debt review does. In almost all cases, over-indebted consumers have multiple credit providers providing debt in multiple forms such as retail store accounts, credit cards, store cards, vehicle finance or home-loans.

If you are in desperate need of reducing your various monthly instalments and and attached interest rates, your debt mediator will have to negotiate with each of your credit providers, individually. As you can imagine, this process has the capacity to be quite laborious, and the results achieved pale in comparison with the Debt Review process.

No Legal Protection

Debt mediation does not involve obtaining a court order, and consequently, if your credit provider takes legal action against you, they would be fully within their rights. On the other hand, if you are under the Debt Review process provided by Debt Mate, credit providers would be barred from doing so.

Violates The NCA

The National Credit Regulator (NCR) does not approve of debt mediation, as it violates the regulations of the National Credit Act (NCA), The Debt Review process offered by Debt Mate is approved by the National Credit Regulator. The debt mediation process does not provide consumers with protection against the repossession of their assets or having unlawful garnishee orders attached to their salaries. Under debt review, consumers are protected from this and more.

To find out more about how debt review is a better option, complete our contact form and one of our friendly consultants will give you a call back!