DEBT REVIEW REMOVAL

How to cancel Debt Review or Debt Counselling

debt review exit and the right to exit debt review process is enshrined in the law. A signed letter with an instruction for us to cancel is all it takes.If you cancel debt review before receiving your clearance certificate you need to consider the following,When a debt review is cancelled, the original credit agreement is revived and the creditors are free to proceed to enforce their rights in terms thereof. That is why we urge clients not to cancel without making prior arrangements with creditors. We often assist them to do so.To terminate the debt review process and to have the debt review notice removed from your credit reports requires that a debt counselor determines that you are not over-indebted, even if there is no court order in place for your debt review. Should you wish to terminate the debt review process, please complete the questionnaire below, to allow us to do an assessment of your probable case. We shall then advise further

To get your life going forward without the impediment of the Debt Review Notice on your Credit Bureau Profile,  we do the whole process of removing and clearing your name from debt review including debt review status on itc

Common mis-understanding cancelling debt review(debt counselling)

All accounts must be paid in full:
If a consumer’s financial circumstances have changed to the better and the consumer is now able to meet the repayments ordinarily due to creditors, then the consumer’s debt review process can be terminated or canceled. To keep the consumer listed under debt review and hence over-indebted would be in breach of the National Credit Act(NCA), as you will be no longer over-indebted. The Consumer is entitled to a clearance certificate, as per section 71, sought to terminate the debt review process and be declared no longer over-indebted. However, it was held that to “grant an order that falls short of failing to expunge the consumer’s credit record in toto would effectively mean that section 71 would carry more weight than an order issued out by the High Court and that situation would be untenable”. The NCA is “geared towards the protection of the consumer, and where relevant, the fiscal rehabilitation of the consumer”.

Debt Review must and can be cancelled by the consumer or by the debt counsellor
NCR’s Withdrawal from Debt Review Guidelines before 2016 consumers could request the issuance of a Form 17.4 from their debt counsellor, or the debt counsellor would issue the Form 17.4 . The issuance of the Form 17.4 did result in the voluntary cancellation of the debt review process by the consumer or the debt counsellor.

The Form 17.4 has been replaced by the Form 17.W. This form only caters for termination of debt review under the following circumstances:
The consumer has withdrawn from the debt review process prior to issuance of Form 17.2 and the credit bureaus have been updated accordingly via the NCR Debt Help System.
The debt counselor has suspended provision of service due to non-cooperation by the consumer. The debt counsellor remains the debt counsellor on record.
The consumer has obtained a court order to rescind the debt review order. Credit bureaus have been updated via the NCR Debt Help System.
The consumer has obtained a court order declaring the consumer no longer over-indebted. Credit bureaus have been updated via the NCR Debt Help System.
Only points a, c and d would result in the termination of the debt review process and the removal of the debt review signifier from the consumer’s credit reports. Thus, once the Form 17.2 has been issued and it is detailed that a consumer’s debt review application has been accepted, this shall be noted on the consumer’s credit report. Unless all the accounts are paid up or the consumer becomes entitled to a clearance certificate, the only way to terminate the debt review process, according to the NCR’s Withdrawal from Debt Review Guidelines, is to apply to court for either the rescission of the debt review order if one was obtained, or for a determination that the consumer is no longer over-indebted.

No court order was issued therefore I do not need to apply to court to cancel
As per point 2 above, and as further detailed in the National Credit Regulator’s Removal from Debt Review Guidelines, the termination of the debt review process is only possible if the consumer applies to court to rescind the debt review order if one was obtained, or for a determination that the consumer is no longer over-indebted. These are the only two circumstances in which a Form 17.W can be issued that results in the removal of the debt review signifier from the consumer’s credit report. If the consumer has paid up all the accounts that are under debt review then neither of the two cicrumstances shall be applicable as the consumer would be entitled to a clearance certificate that would be issued by the debt counsellor once all debt included in the debt review process is paid up, or all such debt is paid up and there is only an outstanding home loan account that is up to date and the consumer is able to revert to the original monthly bond repayment amount.

I can cancel debt review without an attorney
It is possible for a consumer to represent him or herself at court. However, the formalities of making an application are best understood by debt couselors and mistakes in the application can lead to dismissals of the application or postponements that can readily be avoided occuring. As such, a consumer can employ the services of an attorney or a debt counselor to attend to the court application to terminate the debt review process, the consumer's credit information is accordingly updated with the credit bureaux and National Credit Regulator to reflect that the consumer is no longer under debt review.

Termination can be done in less than 1 month
Debt review removal process cannot take less than a month or even two months. Firstly,The court date is never likely to be less than 2 weeks away. Furthermore, the allocation of a court date depends on the work load that the court has before it. Thereafter, once the court order is obtained, the debt review red flag must be removed from the consumer’s credit reports and from the NCR’s database. This takes a minimum of 21 business days as per the National Credit Act 34 of 2005.

Can i withdraw from debt review and continue to pay the reduced installment?
The application to terminate debt review depends on the consumer’s ability to show he or she is no longer over-indebted. If the consumer cannot afford to increase the debt counseling repayment amounts, preferably to the amounts that they were paying before applying to be under debt review process, it is highly unlikely that the application will succeed unless the creditors have indicated acceptance of such reduced payments.

After Debt Review has been terminated, creditors cannot take legal action to recover debts
Section 88 (3), provides that a creditor may not take legal action to enforce a credit agreement if the consumer has already applied for debt review and the application has been accepted and the consumer has been declared over-indebted. This provision only applies while the consumer is under debt review. As soon as the consumer’s debt review is terminated, creditors have the right to take legal action to enforce a credit agreement that was previously subject to debt review, typically calling upon the consumer to settle any arrears that may have accumulated on the account and reverting to the original initial contractual repayment amount.

We can also make arrangements with your creditors directly should you still need to continue to pay reduced installments after exiting debt review
About our services

We are specialists in: 
- Cancellation of Debt Review with or without a court order 
- Debt Mediation, Negotiation and Settlement
- Rescission of Magistrate Court Judgments 
- Rescission of High Court Judgments 
- Rescission of Administration Orders 
- Removal of trace alert listings
- Removal of default listings 

Services we specialse in

Credit Repair, National Credit Act, Consumer Protection Act, administration, consumer rights, consumer law, consumer complaints

Services we specialse in

Credit Repair, National Credit Act, Consumer Protection Act, administration, consumer rights, consumer law, consumer complaints