How The Debt Review Process Works
The client approaches a Debt Counsellor and completes a Form 16 (application/ assessment form).
The Debt Counsellor notifies the client’s credit providers and credit bureaus of the client’s application by issuing a Form 17.1 as soon as consent is received from the client to proceed.
From this point, the client may not incur further debt in order for the Debt Counsellor to rehabilitate the current outstanding debt.
The credit providers will ensure the Debt Counsellor receives a Certificate of Balance (COB) within 5 working days of application or before 30 days of application when a proposal (payment plan) is due.
The Debt Counsellor notifies the credit providers whether or not the client is over-indebted by issuing a Form 17.2 within 5 working days of application.
If the client is found to be over-indebted (expenses exceed income), the Debt Counsellor and credit providers will enter into a negotiation process and agree upon a payment plan.
A copy of the payment plan will be issued to the consumer.
The client makes sure that a reduced monthly payment is made to the Debt Counsellor in terms of the agreement reached without defaulting.
The court is made aware of the matter by the Debt Counsellor. The process is made final by granting of a Debt Review Court Order.
The Debt Counsellor reviews the client’s circumstance once a year.
The Debt Counsellor issues a clearance certificate when all debt has been paid off or when unsecured debt has been paid off and there is only a secured loan (bond) by the bank left to pay off . This will allow the client to once again have access to credit and will clear the consumer’s credit profile within 7 working days.