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Residual Debt Services, the “bad bank”, feels recession bite

Residual Debt Services

Residual Debt Services (RDS), the “bad bank” of failed lender African Bank, has warned that its collections could come in below its targets, due in part to SA’s slide into recession.

Curator Tom Winterboer is also cautious about what effect possible debt relief for local consumers might have on its collections in the future.

But releasing results for the six months to March on Thursday, Winterboer said that those who were left with debt in the failed lender “are in a much better position than they initially thought they might be”.

“The estimates we gave them [at the time of concluding the African Bank restructuring in April 2016] were much lower than where we are now, so we are doing much better than we anticipated,” said Winterboer.

Paul

The author Paul