Debt Counselling Process
A consumer who cannot make regular payments to credit providers under the agreement they signed, can apply for debt counselling.
The consumer applies for debt counselling with the help of a debt counsellor or consultant.
The consumer completes debt counselling application form. The form is called a Form 16. Form 16 together with supporting documents is handed over to the debt counsellor . The debt counsellor will check that the form 16 is completed correctly .
The details on the form 16 are captured . Within 5 days all creditors are notified with form 17.1 that consumer has applied for debt counselling.
Should the debt restructuring plan be accepted by all your credit providers, a consent order from the magistrate's court will be obtained, making the debt restructuring plan a court order.
(If the debt restructuring plan is not accepted by all the credit providers, we shall prepare an application to the magistrate's court recommending that the debt plan is made an order of the court.)
The debt counselling process takes 60 working days. The creditor has 5 business days to confirm customer account details to debt counsellor.
This is checked against what the consumer presented to debt counsellor. After 5 days, the creditor is reminded to give feedback. Another 10 days is given to the creditor.
If the debt counsellor does not receive feedback from creditors, he may presume that the figure provided by consumer are correct. The debt counsellor will now determine if consumer is over indebted.
The debt counsellor will now prepare a debt restructuring proposal to the creditors. The proposal must be sent 25 days from date of application. All creditors have 10 days to respond. If there is no response, the creditors will get a reminder and another 5 days to respond.
The proposal is finalised and will be sent to the Payment Distribution Agency to start the distribution to creditors.
You will immediately start to pay the new reduced monthly amount in terms of your debt restructuring plan, to the Payment Distribution Agency.
(PDA, who was appointed by the NCR.)
The PDA will then pay each of your creditors the amount due to them according to the debt restructuring plan
We will provide you with monthly after care and monitor your payments to the PDA
Once you have satisfied all your debt obligations, we will issue you with a Clearance Certificate and advise all the credit bureau
Click on the image below to view the full Debt Counselling Process
