Debt Review: How it Works?

After you have taken the first step in signing up for debt review, the following sequence of events should follow:

You will provide us a copy of your pay slip(s), usually that of the husband and wife and other members who live with you and contribute to the bills, if applicable
You will provide us a list of your creditors, detailing the amount owed, and your present agreed monthly payments.
We will check this against your Credit Report and notify the Credit Bureaus as well as all your creditors that you are under debt-review.
Your creditors or debt collectors may thereafter not harass or summons you, nor may they begin foreclosure proceedings or repossess your vehicle for at least sixty (60) days, provided however that you follow the procedures and cooperate with the Debt Counselor to qualify for a Debt Restructuring Plan.
Accounts for which you have received a Section 129 letter are included in the debt review, but accounts for which you have already been summons are excluded. We will however attempt to negotiate with those creditors to allow those accounts to be included in the debt review but in terms of the law they are not obliged to do so. (Note: the legal costs for this service is not included in the prescribed fees of the Debt Counselor)
Your Debt Counselor will within thirty (30) days analyze your financial position and propose a realistic repayment plan.
Your Debt Counselor will then, with your approval submit your repayment plan to your creditors for acceptance.
Should your Creditors reject the repayment plan, then your Debt Counselor may approach the Courts for an order. (Note: the legal costs for this service is not included in the prescribed fees of the Debt Counselor
Please note: Your failure to cooperate, provide the requested information or meet the following requirements may result in the rejection of your request for a Debt Restructuring Plan in which case the Credit Bureaus as well as the Credit Providers will be notified. Your Creditors are then free to issue summons, begin foreclosure or repossess your furniture or vehicle.

The following are all requirements that may result in the rejection of your request:

Failure to pay the prescribed fee
Failure to provide the requested information within seven (7) days
Failure to pay the planned monthly payments for distribution to the Creditors
Failure to honour any debit orders
Please read below for an in-depth explanation of the above mentioned procedures.

The NCR has developed a streamlined process to best assist you; including working with a dedicated registered Counselors and debt review companies.

All service fees are prescribed by the National Credit Regulator. The initial statutory fee is R50 to enroll in the program.

An amount of R300 non refundable deposit is required as a deposit and the payment of the balance of the prescribed fee is payable from the installment proceeds of the Debtor made to the Payment Distribution Agent (PDA) prescribed by the National Credit Regulator after the Consumer has been accepted into the program and the payments in terms of the repayment agreement has commenced.

After the Consumer signs up for the Program, they must immediately stop any monthly payments to the Credit Providers/ Credit Card companies / lenders or Servicers and cancel any debit orders.

In cases where the consumer’s checking account is with a bank to whom they owe money, the bank may seize the funds left in the checking account. It is therefore advisable that the consumer close the account and move the funds to another bank to whom they are not indebted.

No further payments are required by debt review company and no further payments should be made to the Credit Providers, Credit Card companies or Lenders until your application has been accepted or rejected. You must however continue to pay your rent, utilities and other service providers not provided for under the law.

You will need to complete an Application and make an appointment to have a face to face confidential meeting with a Consultant. Phone sessions are available for faster Application and more flexible times. For a phone session you must call our office or complete the web-submission.

After completion of the Application, you will provide debt review company a copy of the identity document(s) of the Applicant(s), a copy of the Applicant(s) pay slip(s) and a list of everyone owed money. The list must include the full amount you owe (if known) and the present monthly installments. Complete as much as possible since the more information and documentation you submit the faster and more effectively we can meet your needs

We will immediately inform the Credit Bureaus/ Credit Providers, Credit Card companies as well as Lenders and other Creditors who fall within the ambit of the law that you have signed up for Debt Review so that they may cease to call you for any pass due installments as well as halt any summonses they have not yet issued.

Should you get any calls in terms of those agreements, kindly inform those Credit Providers or their Collection Agents that YOU are in Debt Counseling and provide them our details.

The National Credit Act requires that thereafter, and within 30 days we contact those creditors for verification of the outstanding amounts, the interest rates and the agreed monthly installments. We may also order your credit report to confirm the information provided.

The Act obliges the Credit Providers, Credit Card companies or Lenders to respond to our request for the required information within the prescribed time.

The law then requires that within 60 days, we prepare our Debt Restructuring Plan and submit it to the Credit Providers, Credit Card companies and/or Lenders and inform you of the details of the Payment Distribution Agent (PDA) nominated by the National Credit Regulator, and the monthly amount you will need to pay the PDA for distribution under the Plan.


The Debt Restructuring Plan is designed to free you up from the pressures of being over-indebted and to stop the calls from your Creditors and Debt Collectors along with the worries of when the Sheriff will show up with a Summons for you to appear in Court to answer to the Creditors who want your assets seized and sold. In many such cases those pressures stress you out and the morale and work performance suffer.

Once you have been accepted into the program (which will be from 45 to 60 days from the date of you signing up) it is imperative that you keep up the payments.

You to be aware, failure to make the agreed reduced payments within the 60 day period will result in you being rejected by the system and you would have wasted the R50 Application fee and the R350 nonrefundable deposit.

Your Credit Providers, Credit Card companies or Lenders will then be free to issue summonses, transfer your Debts to Debt Collectors and or foreclose, repossess and garnishee your salary.

So, if you are serious about wanting relief and getting out of debt, you need to be responsible and make the monthly agreed payment on time. The alternative is unpalatable.

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