The Debt Review System In SA Is Going Through A Learning Phrase

Debt Counselling News: The high demand for debt counselling assistance has placed pressure on the debt review system, revealing some areas that need urgent attention.

A study has shown that some banks and creditor providers have not come to the party with regards to helping their clients get out of debt, through the debt review process.

Through the process of Debt Counselling, clients who are struggling to manage their monthly expenses may be placed under debt review. The debt counsellor would then restructure the clients monthly repayments and make it more affordable. This would protect you from becoming blacklisted and it will protect your assets from repossession.

But, according to the DailyNews, a 2 month study completed by the University of Pretoria has revealed that many banks and credit providers have not been very supportive of the debt counselling process.

THE PROBLEMS

Among the biggest problems has been the delay in collecting the relevant supporting documents, also banks are at times failing to stop debit orders, or continuing to take legal action despite their clients being under debt review.

Your debt counsellor has up to 60 days to complete the process, from application to submitting the completed proposal on the court. If this not completed within the legal time frame the credit provider is free to withdraw from the process, and proceed with legal action against you.

FINDING SOLUTIONS

“All players have been pointing fingers at each other, so we wanted to get to the bottom of what is actually going on,” said Peter Setou, the National Credit Regulator’s senior manager for education and strategy.

“All the players are holding regular meetings and exploring ways of co-operating in this process,” he said, with the result that relations had improved somewhat since the study was done.

The credit providers should not only be embracing the debt-counselling process, Setou said, but contributing to its costs

DEMAND HAS EXCEEDED EXPECTATIONS

Currently about 112 000 over-indebted South Africans are under debt review, with at least 10 000 more applying every month.

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