The National Credit Act has been the subject of lots of discussions. This act has very strong implications for all South Africans. Most of us have standing credit agreements and all credit agreements are subject to this act except big companies.
The NCA created a new debt relief procedure call "Debt Review".
What is Debt Review?
Debt Review is a process where a consumer who is unable to satisfy all his/her debt responsibilities in a timely manner is protected form harassment by credit providers until he/she is in a position to satisfy all his/her debt responsibilities.
How does it work?
A consumer having trouble paying all his/her debts approaches a Debt Counsellor and applies to be placed under Debt Review. A comprehensive list of Debt Counsellors can be found on the NCR (National Credit Regulator) website.
The consumer is than placed under debt review. A notification is sent to all his/her credit providers that he/she is under debt review. The credit providers are than barred by the NCA to proceed with legal action against the consumer until the consumers status has been analysed by the debt counsellor. (Important: If you received a summons it is to late, a consumer than has to apply to a court to be placed under debt review.)
If the consumer qualifies for debt review his debt will be rearranged according to his/her ability to repay the outstanding debts. That is made a order of court and the consumer is untouchable as long as he/she plays by the rules.
No more debts! When under debt review you may not enter into any more credit agreements unless it is an emergency like funeral etc.