Debt review
Debt review, a process defined in the National Credit Act became fully
operational in June 2007.(NCA)
The process defined is for a period of sixty business days where the debt
counsellor will negotiate a repayment plan taking all the consumer's debt
obligations into consideration. The Debt Counsellor will do a means test to
establish if the consumer indebted. The debt counsellor will send a notice
to all affected credit providers informing them of the consumers' debt
review application. Agreements defined in the NCA as credit agreements would
be placed under review provided that no legal action commenced. Only natural
persons may apply for debt review, unfortunately Close Corporations and
Business' are not covered in the National Credit Act of 2005
The National Credit Regulator is in the process of amending the Credit Act
of 2005 in order to iron out many of the
challenges industry faces. Debt review is
not administration. The National credit regulator supports the debt
counsellors as all the major banks demand that the consumers must pay
more and more, the debt counsellor is the only person entitled to assist if
the consumer is over-indebted. The creditor cannot determine if a
consumers is over-indebted. The creditor for instance ABSA bank, only act
for himself, they cannot interfere with other creditors. According to the
National Credit Act of 2005 only the Debt Counsellor who is registered
with the National Credit Regulator can assist and mediate if a consumer is
over-indebted. The Application fee to apply for Debt review is R50.
Debt counsellors need the
credit profile as many consumers don't disclose all their accounts. The fee
structure approved by The Department of Trade and Industry is to not exploit
over indebted consumers
There is a difference between a debt counsellor and a debt collector. A
Debt Collector collects debt in terms of the Debt Collectors Act. The
Debt Counsellor mediates a reduced repayment over an extended term.
For more info :debtbreaker.co.za
not administration. The National credit regulator supports the debt
counsellors as all the major banks demand that the consumers must pay
more and more, the debt counsellor is the only person entitled to assist if
the consumer is over-indebted. The creditor cannot determine if a
consumers is over-indebted. The creditor for instance ABSA bank, only act
for himself, they cannot interfere with other creditors. According to the
National Credit Act of 2005 only the Debt Counsellor who is registered
with the National Credit Regulator can assist and mediate if a consumer is
over-indebted. The Application fee to apply for Debt review is R50.
Debt counsellors need the
credit profile as many consumers don't disclose all their accounts. The fee
structure approved by The Department of Trade and Industry is to not exploit
over indebted consumers
There is a difference between a debt counsellor and a debt collector. A
Debt Collector collects debt in terms of the Debt Collectors Act. The
Debt Counsellor mediates a reduced repayment over an extended term.
For more info :debtbreaker.co.za
