FAQs about Debt Review

A Section 129 notice is the last step before your credit provider takes legal action against you. Under no circumstances should you ignore it.

Debt review is a legal debt relief solution that helps over-indebted consumers in South Africa by restructuring their debt to make it sustainable. It's a structured process that allows you to hand over your debt negotiations to a professional debt counsellor.

A credit bureau is an entity that collects, compiles and reports consumer credit information from credit providers to do credit scoring or assessment. Examples in South Africa include Experian, TransUnion, and XDS.

The National Credit Act (NCA), 34 of 2005 was introduced by the government of South Africa to better regulate the credit industry and to protect consumers.

The National Credit Regulator (NCR) is an independent regulatory body that was established by the National Credit Act (NCA) 34 of 2005 to protect South African consumers.

The advantages of debt review, also called debt counselling, include: simplified payments, legal protection from creditors, financial education, lower interest rates, flexibility, no permanent flag on your credit record, and a clear path to becoming debt-free. The disadvantages are that you can't get new credit, not all debts are always covered, and a court order can't be rescinded.

Debt counsellors are individuals registered by the National Credit Regulator (NCR), in terms of the National Credit Act (NCA), offering debt counselling. They guide you through the process of debt review.

Credit life insurance is insurance coverage for consumers taking out credit, e.g. mortgages, vehicle finance, personal loans, and credit card debt.

Debt review fees payable by a consumer are tightly regulated by the National Credit Regulator. Examples of current fees are the once-off application fee (R50) and once-off administration fee (R300).

If you're struggling to meet your monthly obligations, you've received demand letters and threats of legal action, you're feeling over-indebted, or you're stressed and anxious about your finances, it may be time to check whether you qualify for debt review.

Find the credit provider who reported the erroneous information to the credit bureau (e.g. your bank), reach out directly to them with proof of the error, and ask them to send corrected information to the credit bureau.

Yes, credit bureaus will be notified when you enter into debt review. This signals to potential creditors that you are working on managing your debts. Afterwards, a debt clearance certificate (Form 19) removes debt review from your credit profile.

You could still qualify for debt review if you are unemployed but married in Community of Property (CoP), but there are several things to consider, e.g. your spouse's income and the fact that your application will be treated as a joint application.

You can check your debt counsellor's registration on the NCR website or by calling the NCR. It's vital to check that your counsellor is registered, since NCR-registered debt counsellors are held accountable by the standards set out in the National Credit Act, enforced by the National Credit Regulator.

As part of debt review, you pay a single, reduced monthly repayment. Your exact amount will depend on your personal circumstances. Your debt counsellor will negotiate the best deal with your creditors on your behalf.

You need to provide your ID or passport number, proof of income, a list of your debts, a list of your monthly expenses, and details of your creditors.

If your credit provider rejects your debt review plan, your debt counsellor will continue negotiating with them to find a solution. If no solution is found, your counsellor can explore legal avenues for you.

Your first payment date depends on various factors, such as the agreement made with the debt counsellor, negotiations with your creditors, and the specifics of the repayment plan as well as your salary date.

No, there will be no record of having undergone and completed debt review on your credit profile with credit bureaus.

Yes, you can apply for debt review if you are unemployed, but you must have other income, e.g. rental income or a pension. The debt review process is predicated on your income.

Debt review is a journey and takes 3-5 years to successfully complete, depending on your individual circumstances. The maximum time that it can take is five years. Your debt counsellor will guide you through the process every step of the way.

A debt review clearance certificate (Form 19) is a legal document issued by a debt counsellor to verify that a consumer has completed debt review. It is required to remove the debt review flag from your credit profile.

You must first obtain a debt clearance certificate (Form 19), which is issued once you complete debt review. Check your credit profile to see if the debt review flag is still active on your profile. If not, contact your debt counsellor.

No, you don't need to attend court hearings. Your debt counsellor will take care of it for you.

If you miss a monthly payment, credit providers may terminate the plan and institute legal proceedings. It's important to speak to your debt counsellor as soon as possible if you're worried about your repayment.

The NCR Debt Help System is a database listing all the people who have applied for debt review. It shows the status of their application.

Losing your job can jeopardise your debt review process. You should inform your debt counsellor immediately, claim credit life insurance, apply for UIF, cut down on expenses, and use pension and provident funds.

When you apply for debt review all the debts for which a credit agreement was signed between you and a credit provider will be included under debt review. Government or municipal debts, child support, medical bills, and utility bills are excluded.

PDA and creditor statements can differ because the balances are estimates, they have different processing times, and the PDA may not be aware of all charges.

No, there are no penalties if you settle your debt early while under debt review. In fact, if you pay off your debt earlier, your debt counsellor may be able to negotiate a discount for you.

No, you cannot apply for new loans, overdrafts, and store cards while you are on debt review. This is to protect you. After all, debt review is about rethinking your financial habits.

Yes, creditors must legally stop harassing you once you enter debt review. If creditors keep bothering you, send them a copy of your Form 17.2 or ask your debt counsellor to speak to them.