iPDA Distributions

The National Credit Amendment Act (NCA) requires a Payment Distribution Agency (PDA) as an entity to be registered with the National Credit Regulator (NCR) and also to be part of the The Payment Distribution Agency Association of South Africa (PDASA).

A PDA has the mandate to collect funds from a consumer who is in the debt counselling program and then distribute those funds to the consumer’s nominated creditors.

How it Works

Debt Counsellors typically advise consumers to make debt repayments via a registered PDA, as opposed to each individual creditor.

Once a consumer agrees to pay one set amount, on a specified date towards his/her debt review program, a payment plan is submitted by the Debt Counsellor to the appointed PDA.

The iPDA will collect funds from the consumer either by means of an EFT payment, Debit Order or DebiCheck, depending on the consumer preference.

Funds are then distributed, strictly in accordance with the active payment plan, to all the nominated credit providers.

Benefits to the Consumer:

  • On a specified date, the method chosen by the consumer and debt counselor is used to collect a consolidated monthly debt repayment installment from the consumer.
  • The money is subsequently distributed on the consumer’s behalf to all designated creditors.
  • The verification of creditor account information ensures that consumer funds are transferred to the designated account in accordance with the creditor’s instructions.
  • To ensure that consumer funds are promptly allocated to their accounts, proof of payment is sent to the creditor.
  • The consumer receives a monthly consumer statement that serves as confirmation of payment.

Benefits to the Debt Counsellor:

  • Because the consumer statement is easily accessible on the Debt Counsellor’s integrated front end solution, keeping record of consumer proof of payments and handling consumer/creditor payment queries requires less administrative labor.
  • The iPDA has integrated with our banker, ensuring fast and seamless payments to Credit Providers and Debt Counselors.
  • Debt Counselor fees can be paid on day 1, alleviating cash flow constraints, one of the many levers available whereby the iPDA can customize certain business rules to accommodate a debt counsellor’s business needs.
  • The iPDA provides a holistic view to the Debt Counsellor of his business performance through comprehensive reporting, which facilitates effective management of crucial aspects like cash flow and defaulting consumers, to name but a few.

To be part of the iPDA journey, simply send an email to info@intuitive.co.za

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Hope to see you at the DCASA Conference and the Annual Debt Review Awards 2022.

Article courtesy DebtFree Digi Magazine.


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