The National Credit Act 34 of 2005 (NCA) introduced debt review as a debt relief measure for over-indebted consumers. However, the provisions to withdraw from this process by the consumer or debt counsellor are not specified in the NCA. The National Credit Regulator (NCR) has provided guidelines, which can be found on their website, with the intended purpose of helping individuals understand how they can withdraw from the debt review process.
To terminate the debt review process and to have the debt review notice removed from an individual's credit report, the individual is required to bring an application to the Magistrate's Court, for the court to find that the individual is not over-indebted. If the financial circumstances of the individual, who is under debt review, have improved and the individual finds that he/she is now in a position where they are able to meet the repayments due to all their creditors, then the debt review process can be terminated. It is rather unfair for someone to remain listed as over-indebted if they have made an effort to significantly reduce all credit repayments, since they are no longer over-indebted, and find themselves suitably positioned to pay their creditors directly, without the assistance of their debt counsellor or the debt review process. To complete the debt review removal, the individual will have to enlist the services of an attorney who can assist them in moving their application in the court, in order for the individual to withdraw accordingly from the debt review process. Once a court order has been obtained, all credit bureaus will be updated via the NCR Debt Help System about the changes of the individuals improved financial circumstances and all notices will be removed from the individuals credit report. The court will only find in favour of the individual and declare that they are no longer over-indebted if the individual is able to prove to the court that they are now in an improved financial situation from when their debt counsellor declared them over-indebted.
Book a consultation with Ngidi SS And Co today so that we may assess your financial situation and assist you with bringing an application to the Magistrate's Court that has jurisdiction.
https://www.ncr.org.za/documents/27%20May%202021-Debt%20Withdrawal%20%20review.pdf