INTRODUCING DRICA
THE DEBT REVIEW COMPLIANCE INVESTIGATION TASK TEAM
LET DRICA INVESTIGATE YOUR DEBT REVIEW AND CLEAR THE FLAG WITHIN 7 DAYS
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CANCEL DEBT REVIEW - DO IT YOURSELF
Debt Counselling is a voluntary and consensual process which results in the Tribunal or a Magistrate Court re-arranging the consumer's debt obligations. You can only be placed under debt review when you have personally applied through an NCR accredited Debt Counsellor.
It is important to read everything in this page - for a short summary click here: SHORT SUMMARY
LATEST UPDATE 20 JANUARY 2021
The Initial Debt Review Flag on Your Credit Record does not mean that you are over-indebted and under debt review. It only shows that you have requested assessment by a Debt Counsellor and you are deemed to be over-indebted.This flag protects you from existing credit providers taking legal action against you while your debt review application is in the process.
You can withdraw from debt review process before Form 17.2 is issued. The Form 17.2 indicates that the debt counsellor has performed financial assessment (at your request and permission) and found you to be over-indebted.
Once a Form 17.2 is issued, the only way to remove the flag is to apply to court to be declared not over-indebted regardless of whether or not the court process was executed. Ask your debt counsellor if Form 17.2 has been/was issued.
The final decision to declare a consumer over-indebted is made by the Tribunal or The Magistrate Court.
The following steps are followed when a consumer applies for debt review:
1. Consumer approach Debt Counsellor to Apply for Debt Review - Fills in and signs Form 16
2. Consumer supplies Debt Counsellor with necessary information relating to his/her financial position for assessment
- The debt counsellor must ensure that the consumer understands that debt review is a voluntary, consensual process which results in the Tribunal or a Magistrate Court re-arranging the consumer's debt obligations
- The debt counsellor must ensure that the consumer understands that debt counselling does not mean that you will not pay what is owed to the credit providers.
3. The debt counsellor will inform your credit providers of your application by sending Form 17.1 and notify the credit bureaus by Updating the NCR Debt Help System
- Form 17.1 serves as a notification to credit providers that you have applied for debt review and also to request the credit providers to supply the consumer's account balances. Consequently credit providers cannot take legal action against the consumer.
At this point - regardless of whether you are over-indebted or not - a flag will be displayed on your credit bureau records that you have applied to be placed under debt review
4. Once the Debt Counsellor receives the consumer's accounts statements from the credit providers, he/she will then perform an assessment in a prescribed manner using the applicable tools to determine whether the consumer is over-indebted or not.
- If the consumer is not over-indebted, the debt counsellor will reject the application and update the NCR Debt Help System accordingly. The debt counsellor must inform the consumer of the application rejection and the reasons for rejecting the application in writing.
The debt review flag should be removed from your credit bureau records.
- If consumer qualifies to be placed under debt review, the debt counsellor sends out Form 17.2 to the credit providers and notifies the credit bureaus by updating the NCRDH system.
5. After considerations of the debt restructuring proposal by the credit providers, the matter is referred to the Magistrate or the Tribunal Court for an Order declaring the consumer over-indebted and re-arrangement of debt repayment
Termination of Debt Review & Issuance of Clearance Certificate -
A consumer can exit the debt review process at any time under the following conditions:
Clearance Certificate -
A consumer whose debts have been arranged must be issued with a Clearance Certificate within seven days after the Consumer has:-
(a) Satisfied all obligations under every credit arrangement that was subject to the re-arrangement order or
(b) Demonstrated:
i) Financial ability to satisfy the future obligations in terms of the re-arrangement order under-
(aa) a mortgage agreement
(bb) a long term agreement
ii) that there are no arrears on the mortgage (long term) agreement
iii) that all obligations under every agreement has been settled in full.
The consumer must supply paid up letters from credit providers
Application for Rescission of the Debt Review Order
The consumer can file an application for rescission of the Debt Review court order at the court that granted the order
* The consumer can only withdraw from debt review before Form17.2 is issued
* After Form 17.2 is issued, the consumer can approach the magistrate Court to be declared not over-indebted.
Requirements for Application to Court to be declared not over-indebted:
* Form 16; Form 17.1 and Form 17.2 documents - these are the documents that were exchanged between consumer; debt counsellor and credit providers during the application stage
* Form 17.W - issued by the debt counsellor when (a) you have requested termination of service or b) when the debt counsellor has suspended the service
* Settlement Confirmation Letters for paid up accounts (issued by the credit providers when you settle the account)
* Account balance statements for any outstanding accounts - issued by the credit provider or by the PDA (payment distribution agency)
How can Sacpa assist?
South African Consumer Protection Agency can assist with compiling information on your debt review situation through an Assessment Questionnaire; Standard Financial Circumstance Form and Account Status Form. The questionnaire and forms will be used to establish if correct procedures were followed to place you under debt review and to determine whether your are eligible for a Clearance Certificate or a Court Application to declare you no longer over-indebted is required.
* In case you satisfy all pre-requisite exit debt review conditions, we shall follow up with all concerned parties to ensure that the debt review flag is removed from your credit profile in accordance with the the NCR regulations.
* In case an application to court is necessary, we shall send you a non-obligation quotation for a court application to be declared no longer over-indebted.
NB: It is a requirement of the law/courts to re-assess your financial status and debt portfolio before you can apply to be declared no longer over-indebted.
The set fee for the above initial re-assessment is once-off R85
Click the Service Request button below to complete a Debt Review Re-assessment Questionnaire. The questionnaire will assist the SACPA to conduct a precise assessment to determine whether you need to apply to court or not. The process shall be completed within 15 minutes in which you will be advised of the appropriate action to terminate your debt review and clear the flag from your credit records.
The once-off Assessment fee of R85 is payable upon submitting the service request form and the assessment process will commence immediately.You will receive feedback within 15 minutes.
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Anticipated Questions:
* What if the debt counsellor is not in business anymore?
Your first instance will be to request information regarding the Debt Counsellor's registration status from the NCR, If found the debt counsellor is out of business or deregistered, the NCR shall advise on the appropriate action.
What if the debt counsellor does not respond to my request for reassessment?
You should report this issue to the NCR and supply evidence of your written attempts to communicate with the Debt Counsellor
Can the NCR issue a Clearance Certificate?
In the instance where the original debt counsellor is not available to issue a clearance certificate, the NCR shall consider your situation, if you meet the prescribed clearance certificate issuance conditions they will advise on the process to obtain a clearance certificate .
