According to the South Gauteng High Court decision in Rougier v. Nedbank, 27333/2010, any act by a debt counsellor to terminate or withdraw debt review is a violation of a debt counsellor’s statutory powers.
The NCR issued its Withdrawal from Debt Review Guidelines on February 25, 2016, as a result of this judgment. When a debt counselor issued Form 17.4 prior to this date, consumers had the option of requesting the Form 17.4 from their debt counselor or having the debt counselor issue the Form 17.4. The consumer or the debt counselor voluntarily canceled the debt review process after the Form 17.4 was issued.
- The Form 17.4 has been replaced by the Form 17.W as a result of the Rougier v Nedbank judgement. Only in the following situations can you use this form to end the debt evaluation process:
- NCR’s Debt Help System has informed the credit bureaus that a customer has opted out of the debt review procedure before the issuing of Form 17.2.
- An uncooperative customer has forced a debt counselor to stop his services. The debt counselor is the only one with a record of working with clients.
- The debt review order has been rescinded by a court order. The NCR Debt Help System has updated the credit bureaus with the information provided by the NCR Debt Help System.
- A court order stating that the consumer is no longer insolvent has been obtained by the customer. The NCR Debt Help System has updated the credit bureaus with the information.
To end the debt review procedure and remove the debt review signifier from the consumer’s credit reports, only points a, c, and d are required. In other words, once a consumer’s debt review application has been accepted and the Form 17.2 has been issued, this information will be recorded on the consumer’s credit report. Unless all the accounts are paid in full or the consumer is granted a clearance certificate, the only option to end the debt review process is by applying to court for either the revocation of the debt review order if one was issued, or for a decision that the consumer is no longer over-indebted.
Termination of Debt Review
As soon as the 60-day deadline has passed after the application was submitted, a credit provider can close any outstanding debt review account. The credit agreement must be cancelled if the consumer is in default. As a result, the credit provider can take legal action to enforce the terms of that credit arrangement even after it has been terminated.
This section of the NCA specifies that “If a consumer defaults on an account being evaluated under this section, then the credit provider may issue notice to terminate the review of that account at any time within 60 days of the date on which the consumer applied for the debt review.”
According to the Act’s Section 86(10), the creditor can insist on the debt counselor’s prompt adherence to the debt review schedule and have the right to take legal action against them if the debt review process isn’t followed properly.
The NCA’s protection for consumers ends as soon as a credit provider terminates debt review in accordance with Section 86(10).
The Credit Amendment Act, 19 of 2014 determines that a credit provider is not entitled to terminate a debt review after the debt counsellor has referred the matter to the Magistrate’s Court for a debt review order while the hearing is still pending.
It’s not the intention of the debt review to relieve the consumer of his or her responsibilities, but rather to seek either a voluntary re-arrangement or a Magistrate’s Court re-arrangement of the consumer’s debts. NCA’s goals include promoting consumer responsibility in the credit market by promoting prudent borrowing, avoiding debt overload, and following through on financial commitments. ‘Based on the idea of satisfaction of all responsible consumer duties,’ the company’s approach to over-indebtedness. A system of uniform and standardized debt restructuring is provided by the NCA, which aims to “ensure that all responsible consumer obligations are eventually met”. The NCA’s development necessitates careful consideration of all relevant interests, not just those of consumers.
There is a 60-day moratorium for consumers in default, during which time they can try to resolve their case.
An application for a summary judgment on the merits cannot be denied because of a person’s inability to pay their debts. Refusal of a motion for summary judgment is well within the court’s purview. When a motion for summary judgment is filed, a defendant may properly argue that the debt review should be terminated because the creditor failed to participate or did so in bad faith. Rather than a defense to the claim, these considerations may be addressed as a plea to the court to refrain from awarding a summary judgment. The court must be presented with sufficient evidence to support a resumption of the debt review process.
How long does debt Review stay on your name in South Africa?
When it comes to clearing your name from a credit bureau, many people worry, “How long does it take?” You’ll receive a debt review clearance certificate once the procedure is complete, which should take no longer than 21 working days.
How many times may your debt be reviewed? Yes, and that’s why you need to be careful while applying for a new loan.
A clearing certificate from a credit counselor is required to remove your debt review status off your credit report.
‘How long does debt review keep on your name?’ is a reasonable question to ponder. Borrowing records are used to determine default and payment records, which can take up to five years.
What happens if I don’t pay my debt review?
Creditors will take legal action against you if you don’t pay your debts on time or if you don’t pay them at all. It’s best to avoid this at all costs.
Getting out of debt is a matter of life and death. Legal action and repossessions can be avoided if you pay a stipulated monthly sum.
You could lose all you own if you go to court. Make every effort to stick to your repayment plan while you are in debt review to avoid causing yourself and your family unnecessary stress or hardship.
Debt review can be a confusing and intimidating procedure if you don’t grasp it. In order to avoid putting your personal finances in jeopardy, you need to know what is expected of you once you sign your repayment plan agreement,” stated Overbeek.
How long does debt Review stay on your name?
With the help of a debt review, it’s possible to get your financial life back on track. Being debt-free can take a long time, and many South Africans question how long a debt review will continue before starting on the path.
The length of the debt review process is determined by a variety of factors, including the amount of debt you have and the amount you can afford to repay. If all goes according to plan, you can expect to be debt-free and receive your clearance certificate in 36-60 months on average.
You’ll be able to finish much more quickly if you’re dedicated or start with a smaller total amount of debt.
See if debt review is right for you, and learn more about what goes into determining how long the process takes.
Can I buy a house after debt review?
Before figuring out what you can do after the debt counseling process is over, you need to know what happens during it and why you can’t take on more credit while you’re in it.
DebtBusters’ skilled debt counselors will guarantee that all credit bureaus and credit providers are informed that the customer is now under debt review when they sign up for debt counselling. They will subsequently label the client’s credit report as “under debt review” by the credit bureaus’ systems.
As a precaution, this is done to keep the client from taking on additional debts. It is the goal of the debt counseling procedure to help the client’s financial condition improve, therefore taking on further debt would be counterproductive to that goal.
The National Credit Regulator (NCR) and the credit bureau will also be notified via the NCR Debt Help system after a client has paid off their debt, as DebtBusters will provide them with a clearance certificate. Since the ‘in debt review’ flag has been removed from the customer’s profile, credit can now be obtained by him or her.
After paying off their debt under debt review, your clients will be able to apply for a new line of credit and buy a house or automobile again!
Once you’ve completed debt counseling and sorted out your financial condition, it’s imperative that you don’t rush to take on further debt. The process of exiting debt counseling can be scary for some people who are afraid of getting back into debt, but for others, it is a springboard back into credit.
It can be difficult to make ends meet on a daily basis, especially as the cost of living continues to rise. Make sure you stick to your monthly budget and evaluate it frequently, as well as focus on saving and investing to expand your money.
How long does it take to remove debt review flag?
Your name will be flagged for an indeterminate amount of time. Until you’ve paid off all of your debts and kept up with your bond payments, you’ll be placed on a debt review list. Once that is done, you will be given a certificate of completion to show that the debt review process has been finished. Once the credit bureaus get the clearing certificate, they will remove the flag from your name within 21 days. It will be easier to have your name cleared if you make on-time payments on all of your debts. The term “tagged” can signify a number of different things. To see if your name has been reported, how do you go about it
Can I pay my creditors directly while under debt review?
During the course of my debt review, would I be required to make direct payments to my creditors? You will no longer be making payments to your credit card companies.
Does debt Review affect employment?
Entering Debt Review does not have any bearing on a prospective employer’s choice to hire you because it demonstrates that you have taken responsibility for your debt issue.
Is debt Review a good idea?
Rather than a strategy to escape debt repayment, a debt review is a way to make it easier to pay back what you owe. They also dislike the fact that they can’t receive new credit until they’ve paid off the debts they already have. Until then, they’ll only be able to use their credit cards.
Can I go to jail for debt in South Africa?
If you don’t make payments on a loan, you could end up in jail. If you don’t pay your taxes or child support, you could end up in jail for non-compliance. This is because failing to pay your taxes or child support is a federal offense that can be categorized as contempt of court. In addition to possible jail time, you may be required to pay legal fees and court charges, as well as the cost of your own attorney.
When it comes to civil debts, you can’t go to prison for them. You can’t be jailed if you haven’t paid a hospital bill, a college loan, or a credit card.
Customers should be aware of their rights and responsibilities while dealing with debt collectors in light of the laws that govern their activity. A collection agency can be reported to the state attorney general, federal trade commission, consumer financial protection bureau, and even the council for debt collectors if they harass or threaten you into paying what you owe.
How long does debt Review stay on your credit profile?
You can be summoned and have a judgment obtained against you if you fail to make timely payments, do not answer to correspondence from the creditor, or do not adhere to the terms of your payment arrangement. If you have a judgment on your credit record, you won’t be able to apply for any new credit at all. For five years or until the judgment is paid in full, a judgment will appear on your credit record.
Can you go to jail for debt?
It’s normal to be scared and frightened about not being able to pay your bills, but in most circumstances, you won’t have to worry about going to jail if you can’t pay.
In the United States, if you owe money on a credit card or on a student loan, you cannot be arrested or imprisoned. However, if you’ve been unable to pay your taxes or child support, you may have a case to be made.
