Requests for debt mediation increased significantly in the fourth quarter of 2012, the National Debt Mediation Association said yesterday.
The number of cases for which mediation was requested spiked from 538 in the third quarter of 2012 to 1 352 in the fourth, the association said.
About 83 percent of the complaints arose from the banking sector, while the remaining 17 percent were among microlenders, vehicle financiers, and clothing and furniture retailers.
Magauta Mphahlele, the chief executive of the association, said that although banking significantly contributed to the high number of cases, financial hardship mediation reflected the sort of accounts that were generally difficult for consumers to pay.
“The role of furniture retail and motor finance became larger,” Mphahlele said. – Sapa