As with everything in life, where the consumer has a right, they also have corresponding responsibilities. Here is a list of your rights and responsibilities under Debt Review.
Your Rights Under Debt Review
You have the right to apply for Debt Review – also referred to as Debt Counselling
You have the right to request, and be provided with, reasons if your Debt Review application has been rejected
You have the right to written disclosure of applicable fees prior to your application for Debt Review
You have the right to full disclosure of the Debt Review process prior to application for Debt Review
You have the right to receive monthly distribution statements from your Debt Counsellor’s PDA
You have a right to receive Clearance Certificates once you have successfully completed the Debt Review process and paid off all your debt
You have the right to notify the NCR if your Debt Counsellor is un-contactable
You have the right to insist on seeing your Debt Counsellor’s proof of registration to the NCR
Your Responsibilities When Under Debt Review
You have the responsibility to ensure that your Debt Counsellor is registered with the NCR (National Credit Regulator)
You have the responsibility to ensure full and correct financial disclosure at the time of your Debt Review application
You have the responsibility to make monthly repayments as agreed with your Debt Counsellor
You have the responsibility to follow up on your monthly payments made to the PDAs
You have the responsibility to ensure that you understand the Debt Review process, applicable fees and implications of going under Debt Review
You have the responsibility to notify your Debt Counsellor if your financial circumstances change at any time during the Debt Review process
YOU have the responsibility to contact your Debt Counsellor if you are unsure of anything while you are under Debt Review
Additional Debt Review Points Of Importance
You can NOT apply for ANY credit while under Debt Review
You will have your name flagged as “Under Debt Review” with the NCR and Credit Bureaus until you have successfully completed Debt Review and had a Clearance Certificate issued by your Debt Counsellor
You need to remember that Debt Review/Debt Counselling is NOT Debt Cancelling
What is Debt Review?
Debt Review was introduced by the NCA (National Credit Act), in 2007, to help over-indebted South Africans who are struggling to make their monthly payments to creditors. Debt Review is NOT a payment holiday but a structured payment plan that has been negotiated with your creditors on your behalf and made an order of the court by a magistrate OR the Credit Tribunal.
What Is Over-Indebtedness?
You are over-indebted if you can NOT pay your debts in a timely manner as you agreed to with your credit providers
You are over-indebted if you borrow money to pay other debts
You are over-indebted if you use your credit card and overdraft facility to pay debt, buy food or any other necessities
You are over-indebted if you skip payments on some of your accounts so you can pay others
You are over-indebted if you start receiving letters of demand and summonses from credit providers or lawyers
You are over-indebted you have judgements granted against you for outstanding debt
Who Qualifies For Debt Review?
Any South African citizen OR
A person with a South African Residency Visa
A person who has a measurable monthly income
Salary (does not have to be the same amount every month ie. self-employed, commission etc)
Pension
Your accounts that you want to add under Debt Review must qualify as a Credit Agreement in terms of the National Credit Act (NCA)
Account/s which have had legal action taken can NOT be included in your Debt Review
If you are married In Community Of Property, you AND your spouse have to enter the Debt Review process together as you are seen as ONE LEGAL ENTITY
Who Regulates Debt Review?
The National Credit Regulator (NCR) regulates the entire credit industry within South Africa. This includes banks OR any financial institution including their subsidiaries, micro-lenders, PDAs (Payment Distribution Agencies) and Debt Counsellors.
What Is A Debt Counsellor?
A Debt Counsellor is a person that:
Will work out how much of your income should be set aside for your living expenses
Will calculate the amount that should be paid to creditors for your debt
Will negotiate with your creditors to reduce your monthly payment and interest rate
Will obtain a court order from the Magistrates Court or the National Consumer Tribunal
Has to be registered with the NCR (National Credit Regulator) as a Debt Counsellor and be issued an NCRDC number
Basson Debt Counsellors NCR registration number is NCRDC964
What Basic Skills Does A Debt Counsellor Need To Have?
A Debt Counsellor has to have the following basic skills:
Good listening skills
Good interviewing skills
Good communication skills
Have empathy
Be able to educate over-indebted clients to a place of empowerment
Be familiar with the National Credit Act and the laws that influence the over-indebted consumer
What Are The Minimum Requirements To Become A Debt Counsellor?
Must NOT be under Debt Review
You must have a clear criminal record
You must be at least 18-years or older
You must have a clean credit record
You must have a Grade 12 certificate
Should have at least 2-years work experience in any of the following fields:
Legal or para-legal
Complaints resolution department
Consumer protection
Education OR training
Financial services
Must have completed Debt Counselling Training and be registered with the NCR (National Credit Regulator)
What Do Debt Counsellors Learn When Completing Their Training With The NCR?
Contents of the National Credit Act (NCA)
The laws that influence the over-indebted consumer
How a consumer can apply for Debt Review
When a consumer can apply for Debt Review
How to read Credit Bureau Reports
How to interpret Credit Bureau Reports
What the term Reckless Lending means
How to draft a Consent Order
How to monitor their clients’ payments
When to issue a Clearance Certificate
How to issue a Clearance Certificate
What Now?
If you think you may be over-indebted and trying to avoid creditor phone calls, you need to make contact with Basson Debt Counsellors. We are waiting to help you through the entire Debt Review process where we will walk the road the financial freedom with you – one step at a time.
