Can I sue under debt review?

The 26-page judgment says that while consumers in debt review can’t incur more credit, they also can’t be sued by their creditors while in debt review (provided that they honour the debt review order). This highlights the trade-off that you make when you go into debt review.

Can I pay my creditors directly while under debt review?

Must I continue to pay my accounts directly while I am still under debt review? You will no longer pay your credit providers directly.

Can debt review be written off?

If you have settled all your debts, then you can get a letter from your debt counsellor and the debt review is terminated. However, if you wish to cancel the debt review before your debts are finalised, you can only do so if you are able to prove affordability and that you can meet the repayments.

How long does debt Review stay on your credit profile?

5 years
This will normally remain on your report for 5 years. When you fall behind with your account payments and fail to respond to reminder letters, or if you don’t stick to your payment arrangement, the credit provider can issue summons and obtain a judgment against you.

Can you buy a car if you are under debt review?

Being under debt review doesn’t mean that you can’t get a car, but you definitely have to assess whether a rent-to-own agreement is a viable option for you. While it is great there is no credit check or interest on payments, the weekly payments and absence of a warranty puts a lot of pressure on you.

How does debt review work in South Africa?

In a nutshell, the debt review legal process is very complex and it should be explained clearly to the consumers, understood and also not taken lightly. We see a lot of debt review removal companies online that scam most South African consumers, promising them the world and fail to deliver.

Can a creditor take legal action after debt review?

Once Debt Review is 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.

How long does it take to pay a debt under review?

During the first 60 business days from the date of your application to be placed in debt counselling, legal action may not be taken against you in respect of debts that are “under review”. This means that if the credit provider has not already proceeded with legal action against you, you have two months in which to negotiate a payment arrangement.

Can a consumer be placed under debt review?

Only consumers who have successfully registered with a National Credit Regulator (NCR) approved debt counsellor, such as Debt Rescue, can be placed under Debt Review. Find out more about what Debt Review is here. I What are the advantages and disadvantages of debt review? Debt review was introduced by the National Credit Act (NCA) in 2007.

Can a creditor get out of a debt review?

If creditors ever do try to get out of the debt review and start new legal action then the consumer is able to defend that new legal action and ask that the matter go to the court where the debt review is already happening (and that the creditor pay costs for trying this new unnecessary legal action).

What does debt review mean in South Africa?

That’s a rough idea of what debt review is all about. Each debt review is as unique as each consumers situation is unique but this is the normal process. Debt Review or Debt Counselling has helped hundreds of thousands of South Africans to deal with their debt and get back on their feet. If you are experiencing debt stress don’t ignore it.

What happens after 60 days of debt review?

It is good to note that after 60 days of the review the Creditors can approach another court to try to get a judgement against the consumer for the debt if the matter is not set down at a court. This means that consumers should check with their Debt Counsellor that the matter has been sent to court and a date for the court case set.

Can a debt counsellor rescind a debt review order?

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.