No, you do not have to use a PDA but most Debt Counsellors strongly advise consumers to do so.
Why would most Debt Counsellors advise you to use a PDA if you legally do not have to?
This is because of the complexities of the process. While it is possible to do yourself, you need to make sure you pay the exact right amount, on the right day, to the right reference numbers, tracking and recording each payment and all these factors can change over the duration of your debt review.
Making a single mistake can cause a lot of trouble.
If you decide not to make use of a PDA to pay your credit providers then here are some things you will need to do each month yourself:
Make sure you know the exact amount that must be paid this month to that particular credit provider. The amount will change over time.
Make sure when you make the payment you take into account any payment fees for transferring the money as these fees may mean you short pay the account (which you can’t do even by a few cents). Rather over pay than under pay.
Make sure you have the correct bank reference number. Often your old reference numbers and the account you paid money into will no longer be correct. Banks often change accounts and reference numbers at the start of a debt review so get those details from the bank (your Debt Counsellor may be able to help)
Keep proof of every payment.
Send proof of every payment to your Debt Counsellor for their records.
Check your Bank statements to see that the payment is reflecting. Compare the balances to your debt review plan.
Pay your Debt Counsellor each month. Just because you decide to pay your credit providers yourself, it does not remove the need to pay your monthly aftercare fee to your Debt Counsellor.
Please note: That the NCA allows credit providers to be paid direct by consumers but the NCR does not allow Debt Counsellors to be paid directly by consumers.
Even if paying your creditors directly yourself, you may still have to make use of a PDA especially for this purpose. If someone asks you to pay them directly make sure they have documented permission via the NCR in their terms of registration or by special dispensation from the National Consumer Tribunal to receive such direct payments.
Be very careful of people who tell you to pay them direct. Many scammers operate this way (which is why using a PDA is normally safer).