If you are overwhelmed by calls from your creditors and debt collectors, debt review offers you welcome relief and gives you legal protection. Once you enter debt review, the relentless waves of phone calls and letters from creditors are legally required to cease. The debt review process aims to create a conducive environment for financial recovery, away from the stress of constant collection reminders.
The National Credit Act (NCA) sets clear rules governing creditor interactions during debt review. Creditors are generally prevented from initiating or continuing legal proceedings against consumers for outstanding debts during this period. While the legal provisions limit creditors' collection activities, communication is not entirely obliterated. Creditors and debt counsellors may communicate to negotiate and agree on repayment terms that align with the consumer's financial capabilities.
In some cases, if a creditor has already taken legal action before the debt review commencement, they might continue with the legal processes, but such scenarios are navigated with the guidance of your debt counsellor.
Should your creditors continue to harass you, you should advise them that you are under debt review and provide them with a copy of Form 17.2, or alternatively ask your debt counsellor to reach out to them.