Many consumers commit themselves to debt review only to get cold feet several months later. For some, finding themselves cut off from credit lines is just too stressful, while others find their financial situation may have already improved.
A recent court ruling provided clarity around exactly how and when an individual may exit debt review. It is important to first understand how debt review works.
When you apply to a debt counsellor for debt review, they issue form 17.1(b) which immediately protects you from any further legal action by your creditors. On receipt of the form 17.1(b), credit providers must provide a certificate of balance within five business days and the debt counsellor then undertakes an assessment to see whether you are overindebted.
For the debt counsellor to determine if you are overindebted, they must find that you are unable to meet all your credit obligations as they currently stand. Once this assessment is completed, the debt counsellor must issue form 17.2 (b) within ten business days after receipt of the certificate of balance. This includes a repayment plan which could include interest rate concessions from your creditors. Although this agreement still requires a court approval, the consumer can start the new repayment schedule as advised by the debt counsellor. All credit bureaus are notified, and you are effectively under debt review.
The next step is to apply to the Magistrates Court and the magistrate declares the consumer overindebted. New amendments to the National Credit Act now also allow the magistrate to lower the interest rate charged by the creditors even if the creditors did not agree to this in the debt counsellor’s original proposal.
Scenario One: Under debt review but no court order
If you have applied for debt review and the debt counsellor has issued form 17.1(b), you can still cancel the process. You inform the debt counsellor that you do not wish to proceed. Be aware that creditors can immediately act against you, if you are in arrears with contractual repayments, as you are no longer protected.
Once form 17.2(b) has been issued, you are under debt review, but a magistrate has not yet issued a court order. In this case, if by the time your application reaches court your financial circumstances have changed, then you can provide this information in the court application. The magistrate will conduct a hearing and if in agreement the magistrate can reject the recommendation which means that they agree that you are no longer over-indebted, and this terminates the debt review.
Note that you would have to prove to the magistrate that you are no longer overindebted and are up to date with all payments. The magistrate will not end debt review just because you no longer want to participate. Remember that you have had the benefit of legal protection up to this point so make sure any contractual arrears are up to date, as your creditors can take legal action once that protection is removed. If the magistrate believes you are still over-indebted, they will issue the court order.
Scenario Two: Exiting debt review after a court order has been issued
The recent court ruling found that no court can put aside the debt-review order until all the conditions are satisfied – namely that all your debts, apart from your mortgage, are settled as per the court order. This means even if your financial circumstances have changed, you will not be able to exit debt review.
The only way to exit debt review in this case is to accelerate all your debt repayments and settle them as quickly as possible. This could be advantageous if you received an interest-rate concession in the agreement as you would be able to settle your debts sooner than if you were not under debt review.
Frequently Asked Questions
I was tricked into debt review. I received a call saying they could help me with a consolidation, but I only realised afterwards that I was put under debt review.
Be aware of what you are signing or agreeing to as this tactic is being used by less scrupulous debt counsellors. They use terms like “consolidation” rather than “debt review”.
If the debt counsellor has only issued form 17.1(b) then you have the right to tell them to stop the process. You can also lodge a complaint with the National Credit Regulator. If form 17.2(b) has been issued, then you still have the opportunity to argue your case with the magistrate. Remember, however, that the magistrate could still find you over-indebted.
You do have the option to switch to another debt counsellor and the receiving debt counsellor will have to continue with the process from that point forward. “Consumers who have not consented to be placed under debt review can lodge a complaint with the NCR,” says Nthupang Magolego, senior legal adviser at the NCR. “The NCR will investigate the issue, and if the evidence indeed supports the consumer’s contention, the debt counsellor will be instructed to remove the consumer from debt review, and in addition appropriate action will be taken against the responsible debt counsellor.”
I entered debt review but have subsequently made arrangements with my creditors/my financial position has improved.
Credit providers do not like customers going under debt review as they are often required to provide interest-rate concessions. In many cases when creditors receive notification from a debt counsellor that a customer is going under debt review, they may contact the customer to make arrangements.
If form 17.2(b) has not been issued you can ask your debt counsellor to release you, but make sure you are not in arrears on any credit agreement as your legal protection would be removed. If form 17.2(b) has been issued, you can take this new information to the courts.
The same applies if your financial circumstances have improved. “If their financial situation has improved it is advisable to share this with the debt counsellors and for the debt counsellor to make a recommendation of not over-indebted. The magistrate is then more likely to agree,” says Paul Slot of the Debt Counsellors Association of South Africa.
It is important to understand that if you make arrangements with creditors and form 17.2(b) has been issued you will remain under debt review until the court hearing. Remember you may lose the concessions approved by creditors and if you are not up to date with all debt repayments you may expect legal action from creditors.
If you feel that your debt counsellor is delaying the court hearing, you can always move to another debt counsellor. Some fees may apply.
I have been under debt review for a few years and am in a position now to resume my original credit agreement.
Once a court order has been issued you have no option but to settle your outstanding debts as per the court order. You can, however, pay off those debts as quickly as you want, so speak to your debt counsellor for a new repayment plan.
How do I know if a court order has been issued?
According to Slot, the debt review application must be set down within 60 business days at court. However, the actual hearing date depends on the court roll, and it can take between two and six months for the hearing to take place.
Slots says the consumer will also be asked to sign a confirmatory application. If the consumer delays doing this and the matter is not set down at court within 60 days, the credit providers could terminate the agreement and take legal action.
Your debt counsellor should inform you of your court application and outcome. It is very important to keep in contact with your debt counsellor to understand the status of your application. A debt counsellor should also give you a copy of the court order. If you are not receiving the service, you can move to another debt counsellor and lodge a complaint with the NCR.
I have paid off all my debts, but my debt counsellor will not issue a clearance certificate.
If a debt counsellor decides not to issue or fails to issue a clearance certificate, the consumer may apply to the National Consumer Tribunal to review that decision. If the Tribunal is satisfied that the consumer is entitled to the certificate, the Tribunal may order the debt counsellor to issue a clearance certificate to the consumer.
Within seven days after the issuance of the clearance certificate, the debt counsellor must file a certified copy of the certificate with the national register established in terms of the section 69 of this Act, and with all registered credit bureaus.
If the debt counsellor fails to file a certified copy of the clearance certificate, the consumer may file a certified copy of the certificate with the National Credit Regulator and lodge a complaint with the National Credit Regulator against the debt counsellor.
Who to contact
To lodge a complaint about a debt counsellor you need to send the complaint to the National Credit Regulator at dccomplaints@ncr.org.za or fax : 087 234 7789.
For information about the debt counselling process you can contact the Debt Counsellors Association of South Africa via email at mailto:dcasa@dcasa.co.za or tel: 0861 432272.
This article first appeared in City Press.
HI MAYA,WITH ONLY A CAR LEFT ON MY DEBT REVIEW PROGRAMME,IS IT POSSIBLE TO WITHDRAW AS IM NOW FINANCIALLY STABLE,AND THE CAR ITSELF WITH BE PAID OFF IN 7 MONTHS TO COME
If the car is included in the debt review it would need to be paid off. You can only exit with an outstanding mortgage
I’ve had the WORST experience. All debt has been paid in full in Dec 21. I need my debt review removed asap
Hi, is it compulsory to exit debt review after you have settled all your debts are except mortgage loan i.e. continue with debt review for just the mortgage?
Regards
It is not compulsory but it is advisable because if you remain under debt review you are paying the debt counsellor to process the mortgage repayment amount.
Hi Maya, I recently applied for debt review. I can afford now to pay my debts, so is it possible to pay my creditors directly without May D.C.?
https://mayaonmoney.co.za/2020/05/what-to-do-if-your-debt-counsellor-goes-awol/
Hi Maya, I’m under debt review but when I have queries I’m always referred to an assistant and when I check my DC registration on NCR his names are not there but the company is registered.
Can I excuse the company from here onwards and pay my creditors directly? If so, how will I get my paid up letters once I’m done paying off my credit?
This article should assist https://mayaonmoney.co.za/2020/05/what-to-do-if-your-debt-counsellor-goes-awol/
I am currently under debt review. My fees to the Debt busters is R438.44 with aftercare fees of R 438.44 and life cover of R752.78. My bond and car combined payment is R 3750 and R4800 respectively. However under debt review I am paying R 4300 and R5300. All my other accounts are paid up. Initially I was told my debt review would be for 5 years and now 5 years later I am still here. How can I get out of the debt review process.
Hi Maya, I have been on debt review for 5 years and I calculated that I paid over R500 000 to the DR company. I am still sitting with 5 accounts that need to be settled.
I have a few accounts that have been settled and yet my payments are not coming to an end on the remaining accounts.
I feel like the additional money from accounts already paid has not been redirected to the remaining accounts as there is no end in sight.
My bond has not decreased after all these payments, it is at the same amount.
I feel like I am bring conned and this is a reputable company.
Please give me some advice.
I want to pay my creditors myself because this is not helping me especially on my bond.
Could you let me know which debt counselor so we can ask them to give a report on this
Good morning,
The company is Debtsafe, what information do you need from me?
Unfortunately DebtSafe does not use the DCRS rules and doesn’t aim to settle within five years – so it ends up taking forever to pay off. If you have your original proposal from them please email to me maya@mayaonmoney.co.za
Hello Maya, just found your article. My fiance entered into debt review a couple of years ago. There is now a balloon payment outstanding on her car and the vehicle company wants her to either settle the whole amount or surrender the car. Is there anything she can do?
This is an interesting question because she cannot refinance that balloon amount due to being under debt review. Has she discussed her options with the debt counsellor?
This is one of the most honest and comprehensive debt review articles that I have read.
Thank you
Hi if I withdrew from the process why cant they remove the flag off my name.
I have been making my own payments with my creditors yet the flag remains on my name.
This may assist https://mayaonmoney.co.za/2020/05/what-to-do-if-your-debt-counsellor-goes-awol/
Hi Maya. I’ve been on debt review for a while now. Due to unforeseen circumstances and moving between different jobs I got myself in the problem of not being able to pay my DC for more than 3 months. Therefor he withdraw his services and doesn’t want to assist me in any means. I’ve lost my vehicle already and still have some unsettled debt of which I can not get hold of the creditors due to my DC not wanting to help me in anyway. How do I proceed in order to get hold of my creditors directly to proceed my initial payments in order to get my certificate. I have contacted other DC’s but can not assist me due to something my DC listed me as on the NCR system. My financial situation has improved but am stranded with these debts still being an issue. I asked a lawyer how can I proceed and he insisted that I must wait until they eventually contact me.
This is a tricky one, not an easy answer. Perhaps the lawyer is hoping for debt prescription but if they take a judgement against you it gets very serious. Personally I would contact the credit providers and if it isn’t already handed over try to come to an agreement.
Hi
I’ve entered the debt review process last year in may and my court order was granted by a Magistrate but I got calls from my accounts and they said it was not paid so I stopped paying the DC,The flag is still under my name however i was told that legal action will be taken against me and i will have to pay the normal monthly amounts if I have withdrawn from the debt review process so my question is can they take legal action if I dont pay them the full amount,because if i have to pay the full amount why should my name be flagged?
I’m not protected yet I still have to pay the normal monthly amounts
Once you do not pay the protection of debt review falls away and creditors can demand the full payment
Hi Maya I have been under debt review for 3 years now and have paid up all my unsecured debt leaving my vehicle finance left.My debt counselor does not want to give me a clearance certificate until my vehicle is paid up. I am by the means to pay double my initial installment on my vehicle every month on my own. We are looking to buy a house next year and I need the debt review flag to be removed. What are my options?
You can increase your payments to the car finance and settle early
Hi Maya my dr combined my wife’s and my accounts but now my wife has left me and now I am left to pay her accounts as well and she refuses to help me,is there a way to uncombine her part of the accounts please help
It will have to do with your marriage contract – I assume you are married in community of property? Creditors can hold you 100% liable for her debts. I suggest you try negotiate as part of the divorce
Hi, I am under debt review. the balance given by my debt counsellor is higher on some accounts than the one I got from my Credit providers of the same accounts, Is this normal? Lately most credit providers are not giving me the balances, they refer me to my debt counsellor
Your credit providers MUST give you your account balances. It may be that some payments are not yet reflecting. It is important to ask your debt counselor about the discrepancy
I’m under debt review, when I start with the review one clothing acc was about to be paid up, only 300 was left, now my question is now that is paid up, can I use it to buy my grandchild clothes for winter not exceeding the amount that I cannot pay?
You need to get into the habit of saving rather than borrowing. You end up paying more for the same clothes just because you borrowed. You cannot use any credit lines when under debt review.
I applied for debt review after a day I cancelled the prosses, I was also charged administrative fees for cancellations ..creditors did confirm with me about matter ,initial contract negotiations was adhered to for three months and later revert to old credit agreement debt.My question is I recieved paid up letters from all creditors from debt review agreements so who must inform the creditors and remove my name from credit bureau?
To exit debt review you need to obtain a clearance certificate. you can do this by going to the National Tribunal Comission alternatively some debt counselors will do it for you from R850 – R1000..
Hi Maya I joined DC express last year they sent me the affidavit form to sign at the police station but I didn’t go since there was lockdown. Will not submitting that affidavit affect my debit review when it’s time for me to finish to get the clearance letter? I or do I still need to submit it. Or will it be easy to cancel the debit review? They are paying my creditors nicely though so far
Is it compulsory to sign the confirmatory affidavit from the debt counsellors? When you are already paying the creditors directly.
Hey Maya
In March this year I applied for debt review telephonicaly, however I didn’t complete the process, I never sent my payslip nor my ID copy.
Today I got a call from a DC instructing me to send these documents in order to complete the process, I told them that I’m no longer interested as my financial situation has improved, now I’m able to pay off my debts.
I was told that even if my financial situation has improved, and the process is not complete, I’ll still have a debt review flag.
I haven’t even started with payments nor have I received anything from court.
As per the article it depends whether or not 17.2 has been issued. If it has then you do still have to go to court to get the flag lifted
Hi Maya, I’m under debt review for 4 years now. I am changing jobs and will be receiving my Pension funds and with some portion of pension fund , I want to settle my debts . Can I directly settle with my creditors without contacting my debt counsellors? And then , what’s the procedure to clear my name from debt review?
You can settle directly but you need to get a clearance certificate and remove your name from the NCR system – this is usually easier to do through a debt counsellor
Hi Maya,
Could you please advise. I’m querying for a friend, they are paying monthly fees above there creditors amount:
PDA R95
Aftercare R207
and legal fees R500. Is this correct.. As the first and second month’s payment were paid to DR. Could payments be decreased if they cannot afford the high monthly payment.?
Those legal fees seem high considering the first two months were supposed to cover it. Will ask a debt counsellor for comment
Same case with me Debt Rescue,
Hi Maya
I applied for debt consolidation last year April however now I am under debt review all my credit was around R120000 no bond nd car finance it was bank loan and other account by then I was earning take home of R10500 now I’m earning 12700 I want to cancel debt review as I need to get credit to build at home nd I feel their interest is too high for service fee.
You cannot exit until your debts are paid. You could pay your creditors directly to save the 5% fee but you still remain under debt review
Hi Maya
We have cleared all our debt. We cannot get the DC to remove us from debt review. All we have is our home loan which is on full interest and std bank is penalizing us for the period we were under debt review. They are seeking the difference between the debt review installment and the full installment with interest and legal fees. Our DC is nowhere to be found. They don’t reply or assist since sept 2019.
What can we do?
You can either approach the National Consumer Tribunal who can issue the clearance or ask another Debt Counselor for assistance
Hi I also had a same problem with their high interest I phoned them and they suspended my debit order and paid directly now I’m only left with one month and I felt that half of the money I way paying was going to their service not bailing me out and felt like I opened another hole so next month I’m getting my clearance certificate and they will remove the red flag under my profile that took me one year instead of five years
Hello.im under dept review with dc expect for a month now but im receiving emails from my vehicle finance im now scared they will take my car what can i do
speak to your DC urgently and find out what is happening
Hello Maya
During 2007/2008, my husband and I (married in COP) went to apply for debt restructuring.
After +-2 weeks of having applied and signing the neccessary documents, I decided to cancel this process. I cannot remember whether it did eventually go to court and was approved or not.
After the debt review cancelation to date, I have not made any payments to the debt counselor and my accounts (as well as my husbands) were handed over.
I settled a few accounts and the remaining ones I made payments on them.
My husband has since settled some of his accounts with just a personal loan and our joint bond account remaining on his side.
My query now is whether we can have the flag removed from our names as being under debt restructuring because this is not the case, as this is now preventing us from getting any credit anywhere. I ask this becasue this one debt review cancelation centre informed they are able to do this (by applying to the court) & I only need 1 paid up account to submit in court for the application. This comes at a cost of R5000 for my husband and I since we’re married in COP.
Is is correct also that the attorneys where the accounts have been handed o er to should be asking me to increase the installments every now and again?
Regards,
I will ask an opinion from other debt counselors but I an sure that if you still have debts outstanding that are with attorneys that will probably affect your ability to borrow anyway
HI MAYA
I HAVE BEEN UNDER DR FROM LATE SEPT 2019,FROM OCT TILL END FEB 2020 I HAVE BEEN PAYING MY MONTHLY INSTALMENT ,BUT IN MIDDLE OF MARCH GOT SMS THAT I HAVE ARREARS IN 3 ACCOUNTS,I TRY TO ENQUIRE WITH DR,BUT THERE IS NO PROGRESS INSTEAD I GOT A EMAIL SAYING THOSE 3 ACC.HAS BEEN EXCLUDED FROM THE DR ,I HAVE TO PA THEM SEPARATELY.CUT STORY SHORT,I DONT TRUST THEM ANYMORE,CAN I CHANGE TO OTHER DC AND IF SO HOW?THX
You can change debt counselors – best to find someone who has a more hands on, personal approach.
I am under debt review. When we started they say it would be for 5years the plab was worked out. How ever it has been 5years now and my debt amount stay the same. No matter how much i try to contact them they will not answer my emails. We have received smses now to say collection has been arranged for the products. Some of the debt have gone dowb and then every year they will magically return ti the same original amounts. We are so tired and we do not know what to do anymore
I suggest you lodge a complaint with the NCR and DCASA. It may be worth speaking to another debt counsellor
Hi i am under debt review for 1 years couple of months my question is i hve deceded not to continue with it, so i wanna pay my debts on my own so i dnt know what to do cos my debt advisor cant get hold of her anymore
As it is explained in the article you can only exit once your debts are clear. Once you have paid them off your creditors will provide you with a debt clearance certificate
Hi Tebogo,
You can pay your creditors directly.
When you have settled all the debts that were included in the debt review process, then you need to ask each credit provider for a settlement letter.
You can approach a new DC, with the settlement letters to issue a clearance certificate for you. A new DC will charge a fee for this process, if they did not do the original plan for you.
Regards
David O’Brien
NCRDC 2613
Hi Maya
My debt review has been suspended a few years ago. I have settled some of the smaller debt.
The creditors not paid over 3 years has not taken any action.
Please advise if the debt of over 3 years not paid becomes prescribed debt.
How do I get a clearance certificate.
Thank you
Hi Maya,
I have been under debt review for the past 5 years and all small debts have been paid off.. I’m only left with the car payment of which it was Baloon. How can I get out of this as I want to trade in the car and get a new car?
If I default my payments and the creditor decide to cancel the agreement, will my debt review company issue me the clearance certificate?
If you default the court order still remains so it is not a way to get out of debt review. The debt review flag will remain on your profile and no lender may give you financing until it is removed.
Speak to your debt counselor, you could sell the car, settle the debt, exit debt review and then buy another car. DO NOT just roll over that balloon payment onto new car – that is a one way ticket to serious car debt
Good afternoon Maya
i have been under debt review for about three years now and my finances are getting better, now i want to pay off all the small debts so that only will be left with the house bend and a loan.
question: can i be able to get out of debt review as i now can be able to pay for my debts and would like to go out there and get other things as the life under review grinds a person to a halt.
last question: after i am out of the review how long does it take to be active in acquiring credit again?
You can only exit debt review once your debts are fully paid (apart from home loan) – there is no other way out – as per the article.
As your payment history will reflect positively after debt review – you should have an improved credit score. lenders would want to see a few months of positive behaviour post debt review, so about six months
Hi There, I have a similar issue as this person, Iv been under Debt review for going on 3 years now, I was informed by the Debt counselors that it would take me 15 months to clear my name, after signing the documents they began stating it would take 5 years, I quickly canceled with them in writing and began reversing any funds they were taking from my account as they were unable to provide proof of paying my debtors, I have since been paying my accounts myself, I have closed 1 account, and have doubled my monthly payment on the other, I have also grown in my company and currently earn double what I use to, I have advised the debt reviewers recently that I am no longer over-indebted however they refuse to assist, the issue is I fired them before the court date and no documents pertaining to the court case were signed by myself, its been nothing but fighting with the people since day 1, how can I fight this?
You should be able to find out from the NCR debt help system whether or not a court order was issued. At this stage your best bet is to find a better debt counselor who can make the court application and prove that you are no longer over-indebted
Hi Maya
My car is giving me problems and I want to take it back to the bank will my debt counseller allow me to exist debt review as I can be able to pay for my bond and the personal loan?
The bank is not going to take your car back – it’s not their responsibility, so it will just be sold and you would still be liable for the shortfall
Hi Maya
So I applied for Debt Review two years ago, and to date have yet to have the matter finalized in court. I have yet to get a straight answer as to why but at this point it’s irrelevant. I have recently come into an inheritance that will allow me to pay off the majority of my creditors save my vehicle finance and 2 others. The total installments of which (prior to Debt Review) will then be less than my current monthly PDA payment, so I will want to pay that directly myself and cancel the DR process. So I just want to clarify, from my understanding of your article. I can do this, but I will then have to tell my Debt Counselor that I wish to cancel Debt Review and they then have to take the proof of my affordability to my next court date, in order for the judge to then reject my Debt Review application. Am I correct?
Correct as long as the court order has not been issued. given the length of time it does seem strange as the court order should have been granted by now
Hi , we have inherited money that will soon be paid out. Our debt counselors have been very unhelpful the last 4 year.We have had so many fights regarding communication ect
According to them when we started with debt counseling it was to be for 5 years, it started in 2015.
We will be able to pay off all of our debts except for the House. Can we continue without the debt counselors or do we have to inform them that we will be contacting the banks directly.
If we are forced to still deal with the debt counselors , can they charge us a penalty for not staying with them ?
Thank you
You can deal with the creditors directly – the debt counsellor has a right to the fees that are charged upfront but not the 5% ongoing fee if they are not providing a service but best lodge a complaint with NCR so that there is no recourse
Hi Maya .. I am currently under debt review and have been for the last 5 years. I have has some months in fact on 4 occasions over the years where I paid R5000 rand short of the R27200 that was expected. Does this constitute a default. My second Question is at the start of the debt review I owed a creditor an amount of R54000 ,00 . 5 years later I have paid in access of R49000,00 rand on this Debt . I received a statement a few days ago that I owe this creditor R53000,00 I have contacted my Debt councilor and I am being given the run around. What are my rights who can I consult with.
Some debt counselors have structured appalling deals unfortunately. You can engage directly with the credit provider and see if you can accelerate the repayments. Your only recourse is the NCR or National Consumer Tribunal. You can also lodge a complaint with DCASA if they are are member
Hi can the bond originator cancel your debt review and put you back on contractual payments which is now double the amount ..they claim the payments did not cover the interest but it was a signed court order so who did the calculations ?? I cannot afford my repayments ….please advise urgently!!! Before I went on debt review my contractual amount was 7 odd k reduced to 3oddk but over the years I was back on 7 k ..now they want 15k …please help
Not unless you missed debt review payments – that is the only time they can cancel it. Some debt counsellors push the debt out to reduce repayments which is not a good practice.
HI Maya
started debt review in September last year, all my accounts and Id in my maiden name, got married in August, but because they pushed me to take this debt review, i forgot that we got married in August, now i have to sign an affidavit with the lawyers to say i am single which i am obviously not, am i in trouble with the lawyers for not disclosing it? but it honestly did not cross my mind about me being married.
It is a problem because they will have to put your husband under debt review if you are married in community of property
Good day Maya
in 2017 i was put on debt review but i never used the service since i requested the debt councillor to cancel it but did not. i have paid out my debts but my name is still having a debt review flag and that has put my life into a hold. what can i do to clear off my name.
You need to obtain a debt clearance certificate. The easiest is to ask a debt counselor to do it for you – they charge around R1000
Hi Maya, once the debt councellor has issued a clearance certificate, how long does the court process normally take? Also, please advise what additional costs are involved in ending the debt review process if all accounts are paid in full? Thank you.
My mother entered into a Debt Review agreement in 2016. She signed the documents and a form 17.1(b) and 17.2(b) were both issued. My mother decided to cancel and she informed the debt review company of this. The matter was never brought to court and a court order was never issued. There were no payments made. My parents are married in community of property and a few days ago my father tried to apply for vehicle finance and discovered that he is listed as under debt review, because my mother’s application was never cancelled. The debt review company is now saying that they will not cancel their services and the debt review flag will not be removed from both parents, until all of mother’s debts are paid. What can we do in this instance?
If no court order has been issued, your only option is to ask a debt counselor to go to court and show that your mother is no longer over-indebted
Am out of debt review..I want to buy a car..when can I start applying for car finance?
I would suggest six months after exiting debt review
Evening maya i need to know if debt collector put u
In debt review without give u peppers to sign or not
Letting u know they put u on debt review and im still paying my account then they give me letter of cancelation but still they say im still under debt review what must i do know
Ask the Debt Counsellor to provide the papers you would have had to sign. If they cannot provide those lodge a complaint with the NCR. Debt counselling related complaints send to dccomplaints@ncr.org.za.
Fax : 087 234 7789.
Also lodge a complaint with http://www.dcasa.co.za/
If you have not had a response from NCR within 2 weeks let me know
Hi Maya
I have been under debt review for 3 years and pay all my services provided including the car and now it two months, I am call the debt counselor to find out when are they going to issue the clearance certificate, because all the paid up letter was send to them and they keep telling me the attorney is not available to sign the clearance certificate, is there any other way to get the clearance certificate because it is really aftecting me and I can not wait anymore.
You can go the National Consumer Tribunal https://www.thedti.gov.za/agencies/nct.jsp
Hi Francis,
You can switch to another Debt Counsellor, and they can issue the Clearance Certificate, although the new DC will charge a fee for the service.
We charge R1000 plus VAT for the service assuming that the client has all the settlement letters from the credit providers.
Regards
David O’Brien
NCRDC 2613
davidob@meerkat.co.za
Hi,May.
I am under debt review for a year and court order is issued.
I have defaulted for two months and debt councillor suspended the program and issued Form 17.W to all my creditors.
What procedure is expected to unfold for the court to know nland nullify the program and revoke the the court order so that I can pay my creditors the monthly premiumin respect of original contractual obligations
It is a good question. The danger is that your creditors immediately bring legal action, so you need to speak to them directly. Your credit record will reflect the default. I am not sure what the process is at this stage in terms of removing the flag from the credit bureaus but will find out
I checked up on this and a Form 17W only suspends the service and not the process. Court order cannot be nullified. The best option is to pay the 2 months arrears and ask the Debt Counsellor to reinstate the service.
The court process cannot be undone – the only way out is full repayment of all debt.
Hi I’m on dept review and I defaulted, I have not being paying for the past 5 months due to my financial circumstances,I am not able to pay the money my dc negotiated and I have never received a court order I would like to exit dept review and make arrangements with my creditors,please advice me on what to do next
If you have defaulted then your creditors can take legal action against you. It is very important that you speak to them urgently and come to an arrangement.
Hi Maya,
I have paid off all my accounts accept for one loan from African Bank. My debt counsellor didn’t keep to the payment arrangement a set out in the court order which ultimately lead to the account being in areas for more than three yrs, this has accumulated massive penalties and interests almost doubling the loan amount.I have laid a complaint to the NCR however its taking forever to resolve.
In attempt to regain control of the account I have had to pay double and sometimes three times the loan amount to settle the areas.
Iate last year unware of the recent court ruling, I applied to the courts to rescind the debt review which was unsuccessful. I have been under debt review for over four years, I am doubling payments on the existing loan in effort to pay it off quicker however the amount is far to large, partly because of my debt counsellor , it will take another 2 – 3 years to pay off this account : I still await a finding from the NCR on my complaint.
Does my case not have merits to be heard by the Consumer Tribunal re issuing a clearance certificate?
I would really appreciate your advice
I would definitely recommend that you approach the Consumer Tribunal. You should also lodge a complaint with the Debt Counselor Association https://www.dcasa.co.za/
Good day. I apply for debt review but cancelled it in a month because I was not over debt. Debt counsellor told I can’t because I sign. Did make a complaint and they told me must pay cancellation fee but never issue me any forms. Currently paying my own accounts but I’m stil under debt review. Any advice?
It is very difficult because the NCR is not really dealing with these issues. Send me an email to maya@mayaonmoney.co.za and I will forward to NCR
Hi Maya..I’m currently under debt revie and almost done paying all my accounts.Once i receive a Clearance Certificate after how long will i qualify to buy a house.
Once the debt review flag is lifted you effectively have never missed any payments so your credit score should improve quite soon. I would suggest waiting a few months, getting your credit score and see if it is in the good to excellent range. the banks will be using that
I attempted to go through with the debt review however i have never paid a cent to the debt counsellor, but i have now paid all my debts and no court order was issued by the flag is still there the DC is requesting i pay R2012 in order to issue the clearance certificate but i dont have that money can i have the flag removed without the Debt Counsellor
If you have clearance certificates from all your debtors you can submit these to the credit bureaus. You can also apply the the National Consumer Tribunal
Maya I have a court order to rescind my debt review. What should I do next?
your debt counselor should handle it, but if not contact the credit bureaus so they can remove the flag
Hi, some advice please. I’m under debt review now for 4 years. Up until now, there was not a court order issued. I have never not paid, short paid or late payed the PDA but, various amounts reach the creditors. I have endless arguments with my DC and she constantly deny this. I have reported her to the NCR on numerous occasions but, she just carries on. Can i resign from her? The way she carries on, i will still be under debt review for a very long time. Please advice. Thank you
You can contact the Debt Counselor Association of SA for advice. But yes, you can move to another debt counselor
I’m currently under debt review. I need to know if I finish off my debt and only have my car as an outdtaing debt can I exit debt review?
If your car formed part of the original debt review agreement you cannot exit until it is settled. But you can accelerate your payments and pay it off sooner. It is only your mortgage which does not have to be settled
Hi Maya, I have paid all my debts except for two loans and car. Originally I paid 6200 for a car and 1400 for the loans. I am currently paying 10500 for all of them including aftercares. Will it not be wise for me to pay my car 8000 directly and 2500 for loans, outside of the debt review?
I’m not sure if a credit provider can take a direct payment – but it is worth asking them
Hi Maya
My debt review has been suspended awhile back, i have settled a few of the creditors myself.
How can I get off debt review?
The creditors not paid has not taken any action for over 3 years now what are my options?
You have to follow the process of obtaining a credit clearance certificate. This is usually done by your debt counsellor but you can ask yourself. This would be given to the credit bureaus
I am under debt review and I have settle off most of my debts, only left with 2 debts which are worth R25k. Can I terminate my agreement and pay the ones left on my own. And I can’t apply for a job because of being under debt review.
As the article explains you have to complete the debts as per the court order
Hi can u plz check if am still under debt review cos i payed all my account but still wait for payed up letter is been over months now
You will have to check with the credit bureaus
the reason i want out of this process isthat taking long and im paying little to other creditors and i pay over R800 towards debt review company
You need to discuss this with the debt counselor and see if you can increase the payment to pay off sooner. You also have the right to change to another debt counselor
Hi i pay my installment every month to the debt counselor. They pay my creditors. They told me i will be under debt review for less than 60 months. But if i work it out can i be under debt review for more than that. Some of my creditors like african bank ask me to pay linked insurance also. So if i pay the insurance and with the interests i only pay off a small amount of money. I ask my DC if the creditors can leave the linked insurance because the payment on it is almost R900 a month. But they also cant give me an answer.
The creditor can insist on credit insurance but you are allowed to shop around. A new law limits the maximum payable to be R4.50/R1000 of debt. So to be paying R900 a month in credit insurance would mean you have a credit balance of R200 000. If that is not the case it is possible you are paying too much. Some providers like Yalu and Switch2 can offer cover for even R3.50/R1000. I have heard African Bank is very difficult when it comes to switching but it is worth checking with them. I would recommend that you ask African Bank if you cannot pay the credit insurance separately from the debt repayment.
I am under debt review but i am not happy with them. Can u provide me with the best debt review counsillors because the once that i currently have did not provide me full information
Ones that I have spoken to are DebtBusters, Meerkat.co.za and http://rddebtcounselling.co.za/