Credit Provider Refunds Explained

Table of Contents

Scenarios when a refund is due

Scenarios when a Credit Provider refund is due:

A refund is due when a double payment is made to your creditors. This can occur when a payment is made via the PDA(Payment Distribution Agency) and when a client is debited directly by their creditor in error.
Refunds are also processed to a client if the client has overpaid and settled an account in full. In this scenario, the credit balance will be refunded to the client and a paid-up letter will be issued.

What is required to get a refund?

From the debt counsellor:

Form 17.1 - this is a formal notification issued by the debt counsellor to all the client’s creditors informing them that the client has applied for debt counselling
Form 17.2 - this form is issued once all concerned creditors have agreed to the debt counselling process and further state that the client’s application has been successful
Debit Order Cancelation Form - a form issued by the debt counsellor to all creditors with whom a client has active debit orders. It instructs and requests that all active debit orders be cancelled.
Proposal - a formal document indicating the term, installment, and interest rates offered to the creditors based on the client’s affordability
Final Acceptance letter- a document issued by a credit provider once they have accepted the terms offered by the debt counsellor as listed in the proposal document

From the client:

Bank statement- Indicating the debit order(s) that ran. A refund will be processed into the same account that was debited. Clients can submit a bank statement/confirmation letter for another account if they want the refund processed to a different account.

How long does it take for a refund to be processed back to the client?

This is dependent on the credit providers as they all have different refund processes and turnaround times. Refunds can take up to 14 business days.