What to do if you were accidentally put under debt review.

Accidentally Placed Under Debt Review – What to Do

Getting out of a situation where you’ve been accidentally placed under Debt Review is not a straightforward process. If you find yourself placed under Debt Review without consent, it is possible you’ve fallen victim to a scam, or you may even have entered into the process unintentionally. Let our legal experts help you take back power in your financial capacity.

Debt Review intends to aid over-indebted consumers, by restructuring their debt repayments to be easily manageable. During Debt Review, individuals benefit from protection against their creditors and a payment distribution agency collects their monthly payment and distributes it to their creditors. Simply put, this process is a relief measure that effectively opens the doors that struggle consumers need to be opened, to overcome their debt problems.

How Can I Be Unwillingly Placed under Debt Review?

How can you be accidentally placed under debt review?

While the process of entering Debt Review involves many steps, it is unlikely but not impossible that you could find yourself unwillingly placed under Debt Review. From completing and signing the Debt Review application to undergoing a formal assessment of your finances and a court application in terms of section 86 of the National Credit Act 34 of 2005, all steps need to be taken legally.

A simple action like signing documents without properly reading them could be your downfall, while some clients believe they are applying for Debt Consolidation and don’t fully comprehend the commitments involved in entering Debt Review.

You may also have sought the services of a Debt Counsellor who is not registered with the National Credit Regulator (hereafter referred to as the NCR) and did not properly explain and educate you, which they are legally required to do.

What Can You Do?

What can you do if you were accidentally placed under debt review?

According to the NCR Debt Review Withdrawal Guidelines, you can submit a complaint to the NCR against a Debt Counsellor if you believe you did not apply for Debt Review. The better prepared your case is, the more likely the investigation will go in your favour. Our Cape Town Legal Consultants team have extensive expertise with this and is here to help you.

If you are found to have not entered Debt Review after this investigation, the NCR will inform the Debt Counsellor, who will need to update the Debt Help System to reflect Status B, while also notifying your credit providers. These actions are monitored by the NCR, and you can also view your status on your credit report for free once a year, from a reputable credit bureau.

A good credit score and control of your money are powerful attributes which are essential to your financial well-being. Don’t stand for the misconduct of a Debt Counsellor which resulted in you being under Debt Review. Contact Cape Town Legal Consultants today!

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