DEBT REVIEW PROCESS
The consumer applies for debt review with the help of a Help with debt ,debt counsellor or consultant. The counsellor will explain what debt review is.
The consumer completes and signs a debt counselling application form. The form is called a Form 16. Form 16 together with supporting credit documents is handed over to the debt counsellor.
Credit history details on form 16 are captured immediately. Within 5 working days (or sooner) all creditors are notified on form 17.1. that the consumer is applying for debt counselling or debt review. The debt review application is now in progress. No legal action from a creditor is now possible.
The debt review process takes 60 working days. Creditors have 5 working days to provide credit information on consumers. This credit history is checked against the credit information given to the Help with debt ,debt counsellor by the consumer. After 5 days the creditor is reminded to give credit information feedback. Another 10 days grace is given to the consumer who wants to get out of debt.
If the Help with debt, debt counsellor does not receive credit information or credit history from creditors, he may presume the credit information or credit history provided by the consumer is correct. The Help with debt, debt counsellor will now determine if the consumer is over indebted.
If the Help with debt, debt counsellor finds the consumer is not over indebted, he will advise the consumer and the creditors in writing, and may proceed to recover their outstanding monies.
If the consumer is over indebted, the Help with debt, debt, counsellor will now prepare a debt repayment or debt solution proposal to the creditors. The debt repayment proposal must be sent 25 days from the date of application. All creditors have 10 days to respond. If there is no response, the creditor will get a reminder and another 5 days to respond
If the debt repayment proposals are accepted by all creditors, the approved proposal will be sent to all the credit providers, credit bureaus and to a payment distribution agent (PDA) who will commence distribution of payments’.
All approved debt repayment proposals must be submitted to either a Magistrate’s Court or The NCR Tribunal in order to obtain a consent order.
Upon all the consumers’ debt being fully repaid, the Help with debt, debt counsellor must issue a certificate to that effect and notify all credit bureaus, and creditors or a national credit regulator hearing decision and the National Credit Regulator.