Applied for Debt Review? Did Not Continue With the Application? Your Credit Rating Affected?

Debt review, also known asdebt counselling, is a debt solution targeted at South African consumers who are struggling to manage their finances and find themselves therefore to be over-indebted.

It was introduced by The National Credit Act (NCA) as a formal debt rehabilitation program in order to prevent consumers from being placed into personal administration and having to deal with the negative long-term effects thereof.

Once a consumer has been found to be over indebted, this status of being over indebted is recorded at the credit bureau, affecting the consumer’s credit rating negatively.

A consumer will not be permitted to obtain new credit for as long as his/her status is still reflecting as being over indebted.

In many instances, consumers who have applied for debt review and who was found to be over indebted by a debt counselor, does not continue with the formal application before a Court, leaving them in limbo with an affected credit status resulting in a consumer being in the exact same position as if he/she has been placed under debt review by a Court Order, without the intended results of the debts being restructured.

A consumer in such a position will not be able to provide for fresh credit.  This will result in a restraint on personal freedom such as being prohibited from buying a new vehicle or applying for a clothing account.

Should you find yourself in this position, call us.  At DPB Attorneys / Conveyancers, we are equipped to help you.  Get your freedom back. Contact us today!