An end balance difference happens when the PDA system shows one balance, but the credit provider shows a different final balance.
This can happen near the end of the debt review process, even where the consumer has made regular payments through the PDA.
We understand that this can feel frustrating.
Many consumers ask:
“But I paid every month. Why does the credit provider still show a balance?”
This is a fair question.
A PDA statement is a record of payments distributed through the debt review payment system. It helps DCGsa see what was paid, when it was paid, and which credit providers received payment.
However, the credit provider still keeps its own account record. The credit provider’s system may calculate interest, fees, allocation dates, insurance, arrears, legal charges or settlement figures differently from the PDA system.
Because of this, the PDA balance and the credit provider balance may not always match exactly at the end of the process.
An end balance difference does not always mean someone made a mistake. It also does not usually mean that a new debt suddenly appeared.
In many cases, it is a final reconciliation difference between the PDA payment history and the credit provider’s own account system.
End balance differences may happen because of several reasons.
Interest may have continued before the credit provider accepted the proposal or before the court order was granted.
Payments may have been allocated on different dates by the credit provider.
Some payments may have been received late, short-paid, missed, reversed or not allocated correctly.
Service fees, insurance premiums, legal costs, collection costs or account charges may have remained on the account.
The credit provider may have capitalised arrears from the early part of the process.
The account may have moved to another department, attorney, collector, recovery account or internal reference.
The credit provider may also not have updated the balance every month during the debt review process.
This is why DCGsa must complete a final check before issuing the Form 19 clearance certificate.
DCGsa must confirm whether the balance is correct, whether it must still be paid, whether the credit provider can issue a paid-up letter, or whether more information is needed from the credit provider.
If an end balance difference remains unresolved, the credit provider may refuse to issue a paid-up letter. Without the correct paid-up letter or written confirmation, DCGsa may not be able to certify the clearance certificate properly.
This is not done to delay the consumer. It is done because the clearance certificate must be legally and procedurally correct.
If a small final balance is confirmed, the account may need to be settled before the paid-up letter can be issued.
This is one of the reasons DCGsa advises consumers not to stop paying too early. It is usually easier to deal with surplus funds later than to stop payment too soon and then struggle to settle a final shortfall.
In simple terms: an end balance difference is the final difference between what the PDA system reflects and what the credit provider confirms. DCGsa must resolve this difference before the account can be treated as paid up for clearance purposes.