The rights and obligations of consumers during Debt Review

Debt review is a process in South Africa, regulated by the National Credit Regulator (NCR), which allows individuals to restructure their debt obligations. While this procedure can offer much-needed financial relief for consumers struggling with debt repayments, it also places certain rights and obligations upon them that must be adhered to. A client can be registered for Debt Review according to NCR for 2 years (24 months) or 5 years (60 months).

One of the main rights afforded to consumers undergoing debt review is access to independent advice from a qualified Debt Counsellor regarding all aspects of the process. This includes reviewing repayment plans offered by creditors as well as providing information on budgeting and cashflow management skills. The counsellor will work together with the consumer throughout the entire duration of their debt review, making sure they understand every step of the process before signing any documents or entering into any binding agreements.

Alongside these rights come a number of obligations that must be met during debt review proceedings. An individual’s credit rating may be affected while under debt review and they must remain up-to-date with payments required by agreement or court order. Failure to comply with these regulations could result in legal action being taken against them, so it is important for consumers to fully understand what is expected of them before embarking on this journey.

When seeking assistance from a Debt Counsellor, it is essential that both parties are aware of how long each stage might take and what fees are associated with different services provided. Consumers should always remember that although there are many benefits available through debt review, compliance is key if they wish to successfully resolve their outstanding debts without further repercussions or complications down the line. A thorough understanding of one’s rights and obligations prior to commencing debt review proceedings will help ensure an equitable outcome for both parties involved. With this knowledge in hand, we can now look at some common myths regarding debt review processes in South Africa.

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