Promised a lower debt review payment?

When you’re working hard to pay off your debt, an offer to reduce your monthly payment can sound like a lifeline.

That’s the offer John received when another debt counsellor called him. Transfer to us, he was told, and you could pay less each month.

But after he moved, there was another cost: R8,000 to “restructure” his debt.

There was a crucial detail. Meerkat had already arranged a court order for his debt repayment plan.

John eventually transferred back to Meerkat. We’re sharing his experience to help you recognise the warning signs before a convincing phone call puts your money, and your progress, at risk.

We’ve changed his name to protect his privacy.

A lower payment sounded appealing

John was already under debt review with Meerkat. His debt had been restructured, and a court order was in place setting out his repayment obligations.

Then came the call from another debt counsellor offering a lower monthly payment if he transferred.

It’s easy to understand why he considered it. When your budget is stretched, every rand matters. A smaller payment could mean more breathing room for groceries, transport or electricity.

John transferred. The new debt counsellor then wanted to charge him R8,000 to restructure his debt.

But changing debt counsellors does not mean your existing debt review starts again.

Your court order doesn’t disappear when you transfer

A debt review court order sets out the repayment terms you must follow. Another debt counsellor cannot simply override those terms because you have moved to them.

A promise over the phone does not change a court order.

If your circumstances have changed and you are struggling to afford your payment, that needs a proper assessment. Any proposed changes must follow the appropriate process. Transferring alone does not make a lower payment lawful or guaranteed.

John’s debt had already been restructured through the court process. Being asked to pay another restructuring fee was a serious warning sign.

Should you pay a restructuring fee again?

A transfer should not be treated as a fresh opportunity to charge you for restructuring work already completed and paid for.

Before agreeing to any fee, ask:

• What exactly am I being charged for?
• Has this work already been done?
• How does the proposed payment fit with my existing court order?
• What will happen to the money that should be going to my creditors?

Get the answers in writing. An explanation that sounds reassuring on the phone is not enough.

The issue in John's story was the demand for another restructuring fee when a court-ordered repayment plan was already in place.

Warning signs to look out for

Be cautious if someone contacts you unexpectedly and:

• Guarantees a lower payment before reviewing your financial information and existing court order.
• Pressures you to transfer immediately, without giving you time to understand the offer.
• Asks for another restructuring fee without clearly explaining the basis for it.
• Tells you to stop or reduce your current payment without explaining the legal consequences and the process required.
• Avoids putting the full proposal and fees in writing.

You have the right to choose your debt counsellor. A legitimate transfer should be transparent, with a clear explanation of your existing obligations, any fees and what happens next.

Struggling with your payment? Please tell us

Your circumstances can change during debt review. Your income might drop. Your household expenses might rise. An unexpected cost might leave you worried about making your next payment.

You don’t need to feel embarrassed about telling us.

If you’re a Meerkat client and your payment is becoming difficult to manage, contact us as soon as possible. We can assess your circumstances and explain what options may be available in your case.

Reducing or stopping payments without the correct arrangements can put you in breach of your court-ordered plan and expose you to legal action from creditors.

Already accepted an offer to move?

If you’ve signed transfer documents, agreed to a new fee or changed your payment instructions, contact us promptly so we can help you understand where things stand.

Keep any messages, documents, payment requests and details of the calls you received. If you suspect misconduct, you can also raise a complaint with the National Credit Regulator.

John returned to Meerkat after being promised a lower payment and then being asked for R8,000 to restructure debt that was already covered by a court order.

His experience is a reminder to pause and check what an offer really means before acting on it.

Received a call promising a lower debt review payment? Contact Meerkat on 021 003 4535 or visit www.meerkat.co.za. We’ll help you understand the offer and what it means for your existing plan.

FAQs

Can switching debt counsellors reduce my monthly payment?
Switching debt counsellors does not automatically reduce your monthly payment or change an existing court order. If your financial circumstances have changed, your repayment obligations need to be assessed through the appropriate process.

Does transferring to another debt counsellor cancel my court order?
No. Your existing debt review court order remains in place when you transfer. A new debt counsellor cannot simply override its repayment terms.

Should I pay another restructuring fee when I transfer?
You should not be charged again for restructuring work already completed and paid for. Ask for a written breakdown of any proposed fees and an explanation of how they relate to your existing court-ordered plan.

What should I do if someone promises me a lower debt review payment?
Ask for the proposal and all fees in writing. Contact your current debt counsellor to understand how the offer affects your existing plan before signing documents or changing payments.