Debt Mediation
What is Debt Mediation?
Debt Mediation is a process that is intended to help consumers who are experiencing a cash flow problem that might only last a few months. An alternative affordable arrangement to the consumer and acceptable to the creditor made on the consumer’s behalf.
What is the Steps Involved? 
What is the Steps Involved?
At LDM we follow a 6-step process, we are with you every step of the way.
Step 1
You will fill in the application form for assessment and submit the required documents. Either Online or Via E-Mail
Step 2
Our Mediation Consultant will evaluate your state of Indebtedness.
Step 3
We will provide you with a repayment plan containing the agreed new installments amounts per creditor.
Step 4
Our Mediation Consultant will sign an agreement proof with you which will be presented to your creditors.
Step 5
We will instruct a PDA (Payment Distribution Agency) to collect payment from you and pay creditors on your behalf.
Step 6
One payment (the sum of your new monthly installment) will normally be deducted via debit order or stop order and paid to your creditors based on the repayment plan.
Frequently Asked Questions?
Frequently Asked Questions?
These are some of the most frequently asked questions we are asked on a regular basis
How long does the process take?
You can stay on Mediation Program until you have settled all your accounts.
How much will this cost me?
Only your 1st Installment (No matter how much it is) will go towards our company which covers Legal, Admin and aftercare. From your 2nd payment, all monies go towards your creditors.
Where can I find my credit reports?
You can download the “Clear Score” App on your phone or go to Shoprite / Checkers to get a credit report.
How can I improve my credit score?
By joining a mediation program, it will boost your credit score.
Can I prepare my own payment plan?
- No, it is not advisable. The model used to prepare a repayment plan, is based on a set of pre-agreed “rules”.
- The application of the rules is complex and a computer program would be required to prepare and table such proposals
- If an unaccredited system is used, credit providers may question the proposal/plan and possibly reject it
Pros & Cons
- No Debt Review, No Administration and No Sequestration.
- No Garnishee and No Judgments
- No Court orders hampering your life for years.
- No fixed term contracts – cancel whenever you feel you are financially strong enough again.
- No upfront fees.
- Stop your creditors harassing you.
- One monthly payment that you can afford.
- No credit checks
- We do not list you on any credit Bureau
Denounced by the NCR
Debt Mediation was denounced by the NCR in 2014, according to them it undermines the National Credit Act and its Consumers.
Not a Legal Process
Not that it’s “Illegal”, Debt Mediation is not a legally binding process and thus not legally binding with the creditors. The creditors can change their minds at any time and require you to pay the higher interest rates previously charged.
Not protected against Repossession
Due to it not being legally binding with the creditors, Debt Mediation does not protect you against Repossession of your assets. If you default on your payments and or are too over-indebted, the banks may still repossess your assets to cover their costs.
Not protected against Judgenments
Due to it not being legally binding with the creditors, Debt Mediation does not protect you against Judgements from your creditors. If you become too over-indebted, you may still incur Judgements from your creditors.
Credit Providers may charge Higher than normal fees
Creditors might charge you higher than normal fees when giving you lower payments. Some creditors might even still charge you high-interest rates because you are not legally bound to pay off your debts.
Do you need more information? 
Let us contact you.
Do you need more
information?
Let us contact you.