BAD DEBT DIFFICULTY
DEBT administrators have a bad name because of the few rotten spuds that sully the profession by not distributing funds to creditors.
In some instances the problem is compounded by employers who do not send remittance statements to the administrators to enable them to distribute the funds accordingly.
It's even worse when employers reject legitimate rescission orders because an employee, and not a messenger of the court, presents it to them.
And if administration orders were reviewed or abolished when the abuse by administrators is first noticed, many consumers would not have been kept in bondage for life by the administrators.
Sibesho Mashego is a victim of such circumstances.
But his worries will soon be over because his administrator, Ben Makhuba of Makhuba administrators, has to free him and refund the money that he received but has not distributed to Mashego's creditors since September 2005.
Makhuba will refund only R25000 though the employer debited R27000 from Mashego's salary. His explanation is that the employer received the outstanding R2000, which they are entitled to in terms of the garnishee order.
Mashego complained that his debt administrator did not distribute funds to creditors and that his employer rejected the rescission order that he lawfully obtained through an attorney.
Mashego said his misery started in 2005 after he responded to an advert Makhuba had posted on street poles.
Mashego had four debts totalling R18651. He said he was paying them off in instalments of R1000 a month. But this placed a strain on his finances because he could only afford to pay back R600 a month.
He sought the services of Makhuba Administrators.
Mashego signed an application to go to court to be placed under administration after the administrator told him that he would have to pay only R600 a month to the administrator, who would in turn pay off the creditors, Mashego said.
He claims he was told that his creditors would not be able to make direct deductions or receive payments directly from him.
"But this was not the case. Barko Financial Service garnisheed his salary until their R5651 was paid off," Mashego said.
In the meantime, Makhuba was receiving money from his employer, but failed to distribute it equitably among his creditors as promised, Mashego said.
Since 2005, Mashego has paid R600 a month, totalling R28800.
"Makhuba is demanding a further R14451 from me though he was not paying my creditors," Mashego said.
He said his creditors wanted him to sign a letter authorising them to debit his salary.
"What is worse is that Makhuba has denied receiving my money," he said.
His problem was also worsened by his employer, Madikwa Mines, who he claims turned him away when he presented a rescission order in 2007.
Madikwa Mines paymaster referred Consumer Line to Angela Olivier who processes garnishee order payments.
Olivier denied she was responsible for the distribution of garnishee orders.
Makhuba has acknowledged that he received payment from Mashego and also that he did not pay his creditors.
He denied having revived the garnishee order with an additional R14000, adding that he was aware Mashego was granted a rescission order two years ago.
"In addition to this, Madikwa Mines never sent me remission statements to show they were debiting Mashego's salary," said Makhuba.
He said he would only refund what he received.
"I will also write a letter to his employer and notify them to stop deducting his money since he was granted a rescission order in 2007," said Makhuba.
Consumer Line has given Makhuba Mashego's bank details so he can refund the amount in question.