• You are here:  
  • Home
  • Summary of the Debt Review Withdrawal Guidelines - May 2021
   
   
   
   
   

NCR DEBT REVIEW WITHDRAWAL GUIDELINES

THE NEW NCR DEBT REVIEW WITHDRAWAL GUIDELINES - 27 MAY 2021 

THE SAD TRUTH ABOUT THE NEW WITHDRAWAL GUIDELINES IS:

ONCE YOU ARE IN DEBT REVIEW 

YOU CAN NEVER WITHDRAW OR BE CLEARED - UNTIL YOU HAVE SETTLED ALL YOUR DEBTS!

CLICK THIS IMAGE TO DOWNLOAD THE NEW NCR DEBT REVIEW WITHDRAWAL GUIDELINES 

 

SUMMARY OF THE DEBT REVIEW WITHDRAWAL GUIDELINES

The Glaring Truth 

There is a feeble attempt to justify the unreasonable decisions made to lock the consumer indefinitely in the debt review situation. There is no reason supplied to move to from the existing guidelines to these new guidelines except to refer to "Clarity in a high court judgment"

This misquoted high court decision was not about debt review withdrawal. The full panel high court hearing was to determine and decide if the high court can revoke the magistrate court or tribunal debt review order.  The reference and context in the judgment regarding withdrawal was merely pointing out the 'weakness" of the NCA in that it does not have clarity on the withdrawal process. The authors of the guideline jumped on the word clarity and used it as a law. However this is not the place and time to make the argument. We know for certain that one day more brilliant minds will prevail against this absurd guideline. 

We shall focus on highlighting the points that have impact on the consumer who is under debt review or who is contemplating debt review. 

Warning: If you are contemplating debt review, don't be tempted, unless you are 100% certain of the exact date when your debts will be settled. 

Summary: 

 1. The debt review flag is listed on the credit bureaus on the very first day that you sign the application for debt review (Form 16). 

2. The debt counsellor shall conduct an assessment to determine if you are over-indebted or not over-indebted

3. If not over-indebted your application shall be rejected/declined and the debt review flag removed from your credit bureau records

4. You can apply to the magistrate court to reject the debt counsellor's assessment that you are over-indebted or not over-indebted

5. When you are over-indebted, the debt counsellor shall file the application to court to declare you over-indebted. 

6. You can still file a rejection before the court grants the order

7, Once the court order is granted, you cannot (never) withdraw from the debt review process or challenge the order

8, Once the order is granted, you can only be released from debt review when you have settled all debts that were placed under debt review. 

9. Even if your financial circumstances have improved and you are no longer over-indebted, you cannot get out of debt review or apply to court. 

10. You can only be released from debt review through issuance of a Clearance Certificate. 

Personal Note: We are of an opinion that these guidelines are not based on any law regardless the author of the guidelines mentioning legal frame work and case law, and in the process demonising section 71 of the NCA. We are certain that these guidelines will not last long. 

 

INTRODUCING DRICA

LET DRICA INVESTIGATE YOUR DEBT REVIEW AND CLEAR THE FLAG WITHIN 7 DAYS

=============================== 

Debt Counselling is a voluntary and consensual process which results in the Tribunal or a Magistrate Court re-arranging the consumer's debt obligations.

Who is Drica?

  • You can only be placed under debt review when you have personally applied through an NCR accredited Debt Counsellor. 
  • The consumer must apply for debt review by signing and submitting a Form 16 document to authorise the Debt Counsellor to determine over-indebtedness. 
  • The consumer must sign a PDA debit order for distribution of the agreed debt repayment fees. 
  • The debt review matter should be concluded and made an order of the court by either the Tribunal or Magistrate court. 
  • The consumer must be issued a copy of the court order.   

If any of the above processes was not executed, then the debt review is unlawful!

----------------------------------------

  • Drica is an autonomous independent agency that is established to ensure that your debt review process was lawfully conducted and complied with the prescribed NCA debt counselling regulations: VISIT DRICA WEBSITE

How can Drica assist?

CLEARANCE CERTIFICATE - (5 DAYS) INVESTIGATION - (7 DAYS) COURT APPLICATION

Clearance Certificate can be acquired under the following conditions: 

  • All accounts paid - Debt counsellor is missing or deregistered
  •  All accounts are settled in full (except home-loan where applicable)
  •  You are in possession of a court order declaring you no longer over-indebted

 

 

 

 

 

 

 

 

Compliance Investigation of the following: 

  • Did you sign Form 16?  
  • Did you agree on the new instalment (distribution amount)?
  • Did the debt counsellor explain the debt counselling fees?
  • Did you sign PDA (Payment Distribution Agency) debit order authorisation?
  • Did you sign and submit a supporting affidavit for court application?
  • Did you receive a copy of the Court Order? 

If your answer is No to any of the above, the Debt Review Agreement is deemed Unlawful.

 

 

 

 

 

Application to be declared no longer over-indebted

 

Drica 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: 

  • The debt review is lawful or
  • You are eligible for a Clearance Certificate or
  • A Court Application to declare you no longer over-indebted is required.