Debt Review

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Frequently asked questions

What happens to my accounts?

Accounts will be frozen by Credit Providers. This includes credit cards, overdraft facilities, revolving credit facilities and store accounts.

What do I tell my Credit Providers?

Try not manage Credit Providers once Debt Review is approved, . The monthly aftercare fee, which is included in your Monthly Debt Review Installment, is utilised by the Debt Counsellor to manage any queries or complications with Credit Providers on your behalf.

Is this the same as being put under administration?

No. Administration only applies to people whose total debt does not exceed R80,000. The repayment term is normally longer and the interest rate of the debt remains the same. It is a costly process in terms of the interest paid and the adverse listing on your credit report can remain there for many years. Under Debt Review interest rates are reduced and unsecured debt is settled in 48-60 months. The credit report is therefore cleared in 48-60 months if you successfully complete the process.

Are there any accounts that may not be included?

Only Credit Agreements granted by registered Credit Providers may be included in the Debt Review process. Doctor's bills, School Fees, Sars Penalties and Municipal Debt is excluded from the process. Other excluded accounts include debt where legal action in the form of a summons has been initiated (prior to your application for Debt Review) or where judgment and/or garnishee order(s) have been obtained.

Can I settle debt sooner, if my financial situation changes?

Yes. Once debt is settled, regardless of the timeframe, we can issue a Clearance Certificate. If debt is not yet settled it is not advisible to leave the process.

Will my available monthly income improve?

95% of the time the answer is YES. However, there are guidelines set aside for calculating your new contracts, regardless of your current living expenses. If we are still unable to improve your situation through the process, then we will refer you for Sequestration. This will only be a recommendation. It still remains your decision whether you want to go ahead with the Debt Review or apply for Sequestration instead.

Will Debt Review have a negative effect on my ability to apply for future credit?

No. On completion of the process, we will issue the National Credit Regulator, Credit Providers and Credit Bureaus with a clearance certificate. It takes approximately 60 business days to remove the Debt Review Notice from your credit report. Once removed you will be eligible for credit again. If, however, you leave the Debt Review process before completion you will not be credit worthy until you can settle your debt yourself and supply us with paid up letters to issue the Clearance Certificate.

If I am Married in Community of Property can I exclude my spouse from the Process?

Couples Married in Community of Property are seen as one individual by the law. They are therefore jointly and severally liable for each other's debt. In the event that a Spouse is unable to service the monthly debt repayment, you become responsible to do so. There are no exceptions. You are jointly responsible in life and in death for each other's debt. If you are single, divorced or Married Out of Community of Property you can apply separately. Your Spouse is not included in this instance, however it may be necessary to add their income as part of joint expenses in terms of qualifying for the process.

What happens if a Credit Provider declines the new proposal?

The Credit Provider will provide a reason and also a counter offer. The Debt Counsellor will consider the objection lodged as well as the counter offer and may submit a modified proposal for consideration. If the Credit Provider still rejects this modified proposal then the Debt Counsellor must submit this proposal to a Magistrate’s Court. The judge is able to over rule this rejection and make the modified proposal an order of the court. The only way to prevent this from happening is if the Credit Provider is willing to proceed to court to oppose or rescind this decision.

Can I withdraw from Debt Counselling?

Yes. Written notice must be given to the Debt Counsellor when withdrawing. The following should be seriously considered before withdrawing from Debt Review: 1. Your original contracts will be reinstated at the original interest rates and installments. 2. Your credit record will still reflect that you are under Debt Review until such time as the debt is settled and you have provided paid up letters to your Debt Counsellor to clear your Credit Report of the Debt Review Notice. 3. If ycomplete the process the Clearance Certficate is free of charge. 4. If you withdraw before completing the process, a fee will be charged to clear you Credit Report of the Debt Review Notice.

Can I change Debt Counsellors?

Yes. You have the right to change Debt Counsellors at any point. Likewise it may be necessary for a Debt Counsellor to transfer your file to another Debt Counsellor. In the event that this happens your installments may need to be renegotiated with Credit Providers. The Debt Counsellor initiating the transfer must notify the current Debt Counsellor of your consent to transfer. The original Debt Counsellor must issue a prescribed Form 17.7 to the new Debt Counsellor. The new Debt Counsellor must notify the National Credit Regulator and Credit Providers of this transfer.