Debt Review OR Debt Counselling, as it is also known, is a legal process that was prescribed by the NCA (National Credit Act) in 2007 to help rehabilitate over-indebted consumers. This is a long way of saying that Debt Review is a way for you to pay all your creditors when you are in financial trouble but you need to know your rights when you are under Debt Review.
The question remains though – what are your rights when you are under Debt Review? According to the NCR (National Credit Regulator), they are as follows:
You have the right to apply for Debt Review
You have the right to ask for, and be provided with any reasons your application for Debt Review is rejected
You have the right to written disclosure of the fees that are applicable before you apply for Debt Review
You have the right to full disclosure of the Debt Review process before you apply for Debt Review
You have a right to receive monthly distribution statements from your Debt Counsellor and PDAs
Applying for Debt Review
You have the right to apply for Debt Review with any Registered Debt Counsellor. The important part of that sentence is that you should only apply with a registered Debt Counsellor. The NCR (National Credit Regulator) has a website where you can see if your potential Debt Counsellor is registered and you can access it here.
Basson Debt Counsellors has been registered with the NCR since 2009 and their Registration number is NCRDC964.
Will I Automatically Be Accepted To Go Under Debt Review?
No, you may be rejected for Debt Review for the following reasons:
You do not have a monthly income
You do not earn enough of a distributable income to be able to offer your creditors a reasonable payment plan
You are married In Community of Property and your spouse refuses to sign the paperwork
You are considered to NOT be over-indebted
Legal action has already been taken on all your accounts
How Much Does It Cost To Go Under Debt Review?
First and foremost, it is your right to know the costs involved in going under Debt Review. Debt Review costs are regulated by the NCR (National Credit Regulator) and are as follows:
A reasonable legal fee goes to the lawyer who drafts the court application and attends the hearing on your behalf
Your first monthly payment goes to the Debt Counsellor. This is capped at R8 000 and is to cover all the work that the Debt Counsellor has done to date
5% Of your monthly instalment goes to the Debt Counsellor for after-care. This is capped at R450. This means it can NOT exceed R450 per month
There is a fee for the distribution of funds to your creditors, but this is dependent on the number of accounts being paid from each monthly payment
Will I Be Penalised For Having Been Under Debt Review?
No, you will NOT be penalised for having successfully completed the Debt Review process. It is important to note that most creditors do not see the Debt Review process as a negative. Instead, they see that the consumer (you) took responsibility for the money owed and successfully settled the outstanding amount/s as agreed with your Debt Counsellor.
What Now?
Now that you know what your rights are when it comes to Debt Review, make sure that you call Basson Debt Counselling BEFORE legal action is taken by your creditors because:
Once you start the Debt Review process, you will no longer receive any threatening calls from your creditors – Basson Debt Counsellors will deal with them from that moment
Once you start the Debt Review process, all your creditors who have NOT taken legal action as yet can be included in the Debt Review process
You can include your Home Loan in the Debt Review process. You will be given a Clearance Certificate once all your other debt has been settled and you only have your Home Loan Payments to continue with
If you are married in community of property, make sure that your spouse is on board as you will only be able to go under Debt Review together due to your marriage contract
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