THE DEBT REVIEW PROCESS

In practice, a consumer will usually consult a Debt Counsellor when he or she realizes that he or she cannot meet his or her monthly obligations. In other instances, the consumer who has defaulted on payment on a particular credit agreement may receive a letter in terms of Section 129 of the Act from the credit provider that informs him/her of the default and refers him/her to, amongst others, a debt counsellor.

Upon inquiry the following information must be conveyed to the consumer.

  1. The purpose of debt review
  2. How the debt review process works and what the role of the Debt Counsellor will be:

  3. The information and documentation required to support the application.

  4. The Fees as per the NCR guidelines

  5. The consequences of being placed under debt review:

Debt Review Process
step 1

THE PURPOSE OF DEBT REVIEW:

  • The consumer applies by completing a Form 16 or provides a debt counsellor with the relevant information stipulated in Regulation 24(1)(b).
  • The debt counsellor informs the credit providers and credit bureaus of the application by updating the NCR’s DebtHelp system and issuing Form 17.1
  • Then verifies the information provided by the consumer as well as the information received from the credit providers in the form of certificate of balances (COB).
  • The debt counsellor assesses whether the consumer is over-indebted, or not. If the consumer is not over-indebted then the debt counsellor must reject the application as set out in section 86(7)(a) and update the NCR DebtHelp accordingly.
  • Depending on the outcome, the debt counsellor then assesses whether the consumer is eligible for debt review or not. The credit providers and credit bureaus are informed of the decision.
  • If the consumer qualifies to be placed under debt review, the debt counsellor sends out Form 17.2 to the consumer’s credit providers and credit bureaus and draft a debt restructuring proposal.
  • After consideration of the debt restructuring proposal by the credit providers, the matter is referred to a Magistrates Court in terms of Section 86(8) of the Act or the Tribunal in terms of section 138 of the Act for an order declaring the consumer over-indebted.
Step 2

HOW THE DEBT REVIEW PROCESS WORKS AND WHAT THE ROLE OF THE DEBT COUNSELLOR WILL BE:

  • The consumer applies by completing a Form 16 or provides a debt counsellor with the relevant information stipulated in Regulation 24(1)(b).
  • The debt counsellor informs the credit providers and credit bureaus of the application by updating the NCR’s DebtHelp system and issuing Form 17.1
  • Then verifies the information provided by the consumer as well as the information received from the credit providers in the form of certificate of balances (COB).
  • The debt counsellor assesses whether the consumer is over-indebted, or not. If the consumer is not over-indebted then the debt counsellor must reject the application as set out in section 86(7)(a) and update the NCR DebtHelp accordingly.
  • Depending on the outcome, the debt counsellor then assesses whether the consumer is eligible for debt review or not. The credit providers and credit bureaus are informed of the decision.
  • If the consumer qualifies to be placed under debt review, the debt counsellor sends out Form 17.2 to the consumer’s credit providers and credit bureaus and draft a debt restructuring proposal.
  • After consideration of the debt restructuring proposal by the credit providers, the matter is referred to a Magistrates Court in terms of Section 86(8) of the Act or the Tribunal in terms of section 138 of the Act for an order declaring the consumer over-indebted.
step 3

THE INFORMATION AND DOCUMENTATION REQUIRED TO SUPPORT THE APPLICATION:

  • Complete application form – Form 16
  • ID document
  • Payslip(s) or bank statements
  • Marriage certificate
  • All correspondence from credit providers including Section 129 Notices
  • Any previous legal action
step 4

THE FEES AS PER THE NCR GUIDELINES:

  • The NCR debt counselling fee guideline is obtainable from this link FEE STRUCTURE alternatively by calling the National Credit Regulator contact center on 0860 627 627
step 5

THE CONSEQUENCES OF BEING PLACED UNDER DEBT REVIEW:

  • The credit providers may not enforce the credit agreement against the consumer by taking legal action within the first 60 (sixty) business days of the consumer’s application for debt review.
  • The consumer may not incur any further debt whilst under debt review and he or she will be listed as having applied for debt review or all registered credit bureaus.
  • Is liable for the fees that the debt counsellor, attorney and PDA’s may charge.
  • The consumer must adhere to any restructured repayment orders made by the Magistrate’s Court or the Tribunal as the ultimate goal is to repay all shorter term debts to credit providers and to show future ability to repay mortgage.
  • A consumer who has applied for debt review can withdraw from debt review only before the declaration of over-indebtedness (Form17.2) has been issued by the debt counsellor. A consumer who has been issued with a clearance certificate or where a court order has been obtained indicating that the consumer is no longer over indebted and no longer under debt review will also be removed from debt review.

The National Debt Review Center (NDRC) pledge to deliver the utmost best in client service and act with the highest standards of integrity.

Our entire team will be at your disposal and will go the extra mile to look after your interests, whether it is protecting your assets, answering your questions or dealing with your credit providers.

From the point of completing your free, no-obligation debt assessment, We will treat all your personal information with the utmost of confidentiality and not only do we provide help where needed, we also provide self-help tools for consumers to use when assessing their financial situation so that where possible and through proper budgeting and lifestyle changes, they can rehabilitate themselves.