Debt Review Process
STEP ONE
Consultation
By phone, email, conference call or face-to-face (if viable).
It is a general discussion to determine the state of your financial affairs, questions and concerns you might have and to provide you with the best solution pertaining to your unique financial situation.
Provide you with an estimate debt review payment plan.
STEP TWO
Form 16 Application for Debt Review
Debt Counsellor
Peruse and capture the information on our software system.
Capture the information on DHS with status A.
Client
Complete and sign the document.
Return to us with ID document(s), Payslip(s), Proof of Address and Bank Statements.
Consent to obtain a Credit Report.
Open new bank account (if applicable).
Credit Provider
Unaware of the application.
STEP THREE
Form 17.1 Notification
We inform the credit providers that we have an application for debt review.
Debt Counsellor
Issue the Form 17.1 to the credit providers.
Client
Receive a copy of the Form 17.1
Credit Provider
Flag the credit agreements for debt review and issue a certificate of balance for each agreement listed for debt review.
STEP FOUR
Certificates of Balance
Certificates of Balance contain vital information for each credit agreement listed.
Debt Counsellor
Scrutinize every certificate.
Assess the information received and compare it with the credit report(s) and initial information received in the consultation phase.
Capture the information on the software system.
Re-assess and determine the state of over-indebtedness and most viable debt review payment plan.
Client
Receive a copy for each certificate of balance.
Credit Provider
Await the Form 17.2B
STEP FIVE
Form 17.2B Notification.
We inform the credit providers that our assessment resulted in a state of over-indebtedness and that we will present them with a new payment plan.
Debt Counsellor
Issue the Form 17.2B
Update DHS to status C
Submit debit order cancellation documents to the credit providers.
Client
Receive a copy of the Form 17.2B
Credit Provider
Cancel debit orders.
Await the debt review proposal.
STEP SIX
Issue the proposal to the credit providers.
The proposal is also known as the debt review payment or restructuring plan.
Every step in the debt review process is important but the proposal is the essence of debt review.
We therefore dedicate an entire section on proposals. Please read.
Debt Counsellor
Issue the proposal.
Discuss proposal with client.
Provide client with the responses to the proposal.
Discuss responses with client.
Client
Receive the proposal.
Receive the responses from the credit providers.
Credit Provider
Assess proposal and respond with letters of acceptance, alternatively with counter offers.
STEP SEVEN (A)
Legal proceedings - Consent Order
When we have letters of acceptance for each credit agreement listed, we approach the National Consumer Tribunal (NCT) for a debt review Consent Order.
Debt Counsellor
Prepare and email the NCT Form 138(1) to the Client and Credit Providers.
Capture the application for a Consent Order on the dedicated CMS system of the National Consumer Tribunal.
Email the granted Consent Order to the client and credit providers.
Update DHS to status D3
Update DHS to status D4 after the Order is granted.
Client
Receive the NCT Form 138(1) notification.
Receive the granted Consent Order, which may take a month or longer after the notification was submitted.
Credit Provider
Receive the NCT notification and update their systems.
Receive the granted Consent Order and update their systems.
STEP SEVEN (B)
Legal proceedings - Court Order
When we receive counter offers from the credit providers and we cannot meet their requirements, we approach the magistrate’s court, in your area of residence, for a debt review Court Order.
The debt counsellor is the applicant and the client(s) and credit providers are the respondents in the court application.
We appoint an attorney to represent us in court.
Debt Counsellor
Discuss the court proceedings with the client.
Prepare legal documents and consult with the attorney.
Sign the Founding Affidavit.
Ensure that the notice of motion was submitted to the client and credit providers.
Discuss the Opposing Affidavit with the client.
Await the final granted Court Order.
Ensure that the client and credit providers receive the Court Order.
Client
Receive and sign the consumer affidavit.
Submit addition documents if so required.
Receive the notice of motion.
Receive the Opposing Affidavit.
Receive the debt review Court Order when granted.
Uphold monthly debt review payments.
Credit Provider
Receive the notice of motion.
Assign to an attorney and oppose the application.
Accept the interim debt review payments but will not adjust any credit agreement, meaning that the contractual interest rate and monthly service fees are applicable until the Court Order is granted.
Restructure credit agreements on the date of the granted Court Order.
Will not take any legal action while a Court Order is pending and monthly debt review payments are received.
STEP EIGHT
Form 19 Debt Review Clearance Certificate.
When all unsecured credit agreements are paid in full, which include a vehicle agreement, a debt review clearance certificate can be issued.
A mortgage agreement might still have an outstanding balance and will default to the original credit agreement after the clearance certificate is issued.
Debt Counsellor
Ensure that we receive paid up letters for each credit agreement listed.
Issue the clearance certificate and email it to the client.
Email the certificate to the credit providers and copy the client.
Certify the certificate and email to the credit bureaus and copy the client.
Update DHS to status F1 or F2.
Client
Receive the clearance certificate.
Copied in the emails to the credit providers and credit bureaus.
Credit Provider
Receive the clearance certificate.
Update their systems and remove the debt review indicator.