18 Sep How to Switch Debt Counsellors Hassle-Free

Debt review is best overseen by a Debt Counsellor with a strong track record, who is registered with the National Credit Regulator (NCR). Some consumers do not understand their rights under debt review, and are unaware that they are legally allowed to switch debt counsellors at any time during the process. If you are unhappy with your debt review experience, it helps to know how to switch debt counsellors hassle-free, so that you’re getting the best support and assistance.

At Cape Town Legal Consultants, we provide clients with legal services as they work towards credit clearance. Our team specialises in judgment removals, and we know how to legally clear bad credit in South Africa. We work transparently to get the best results, according to your specific circumstances.

Switching Debt Counsellors

Are you wondering how to change to a different debt counsellor? If your debt counsellor is acting unprofessionally or is not communicating effectively, this can be frustrating. There are important legal rules that must be followed, so make sure you’re prepared. These are steps to switch debt counsellors hassle-free:

First, contact your current debt counsellor, and inform them of your intention to switch. Request form 17.7, which details your current debt review status. When it comes to choosing a new debt counsellor, first check that they are registered with the National Credit Regulator (NCR) – the NCR website lists all registered Debt Counsellors in South Africa.

You will need to share the following documentation with your new debt counsellor:
– Form 17.7 to confirm your current debt review status
– Copy of your ID
– Signed Power of Attorney (POA)
– Payment Distribution Agency (PDA) statement
– When applicable, all available paid-up letters

What to Know When Switching

Once your new debt counsellor receives the required documentation from you, they need to transfer your request (in writing) from the National Debt Mediation Association (NDMA). They then review your existing debt repayment agreement, ensuring that it works based on your affordability. They might find ways to improve it, but they need your consent before making any changes.

It usually takes anywhere from a few weeks to a month to finalise the transfer process. During this time, you are expected to continue making your payments as before. According to Regulation 15 (5) of 2017, the NDMA is responsible for processing all requests to change or transfer debt counsellors, and they must also notify you, your creditors, and both counsellors of the results.

Cape Town Legal Consultants Can Help

If you are stressed about compliance or uncertain during any phase of the transfer process, we can help. Cape Town Legal Consultants provides sound legal counsel so that you’re on the right track. When considering how to switch debt counsellors hassle-free, be upfront with your debt counsellor and communicate clearly. If you need assistance in debt review removal or credit clearance, our team also provides professional services to help you achieve this. CONTACT US today for a consultation.