04 Mar Can a Debt Counsellor Terminate Debt Review?

Being under debt review is a commitment that involves dedication and time. During the process, it is natural to have questions, especially when it comes to your rights and the rights of the debt counsellor assisting you. A common misconception is that your debt counsellor is legally allowed to withdraw or terminate debt review on your behalf. In fact, this is far from the truth, and they have not legally been permitted to do so since early 2015.

You must be fully aware of the legal frameworks governing debt counselling in South Africa to protect yourself and have the best chance of success. Our Cape Town Legal Consultants team are here to help you navigate debt review removal. We can help you exit debt review and restore credit legally.

What is Form 17.4 and Why Does it Matter?

There was a time when debt counsellors had the power to activate debt review removal for their clients, effectively removing the debt review flag and any protection offered by the service. They could do so by submitting a Form 17.4, also known as Status Code H.

The National Credit Regulator (NCR) changed this, and so the option is no longer legally available to debt counsellors. The withdrawal of debt review by a debt counsellor via Form 17.4 (Status Code H) was officially eliminated on 19 February 2015. If your debt counsellor claims they can terminate your debt review using this method, they are acting unlawfully or have been misinformed.

How to Legally Exit Debt Review?

When considering the process of debt review removal in South Africa, what matters most is where you stand within the debt review process. The easiest way to legally exit debt review is very soon after your application submission – before you are officially declared over-indebted and before you are issued a Form 17.2. You will need to notify your debt counsellor in writing that you are withdrawing your debt review application.

If you’ve already been granted the court order, the best next step is to work with an expert like those at Cape Town Legal Consultants. It is easiest to stick to the debt review repayment plan you’re provided, but we can help you apply for a rescission of the court order before you have fully settled all your debts. Note that this only works in certain circumstances – there must be supporting documents and a valid legal reason for you to do so.

Take Charge Today with Our Help

Our team are here to assist you. We know it can be challenging to legally remove debt review from your record, and we will guide you on the best course of action, based on your specific situation. CONTACT US now to get started!