How to Cancel Debt Review or Debt Counselling (2024)

FAQs

How to Cancel Debt Review or Debt Counselling? ›

The debt counsellor will discuss the consequences should a consumer wish to cancel. The consumer will need to verify in writing that they would like to withdraw from the process. During these initial stages, it is not difficult to cancel and to remove the indicator from the consumers' credit bureau profile.

You cannot remove yourself from debt review, but you can get a registered Debt Counsellor to do so. They will do this when they issue you with a clearance certificate.

A debt management plan (DMP) isn't legally binding, so you can cancel it if you feel it isn't working for you.

If you have all your paid-up letters from creditors, it will cost you R1150 including VAT to be removed from debt review. If you don't have all your paid-up letters, we can still help you. It will just cost you more because we have to retrieve those paid-up letters.

A: Creditors have the right to terminate your Debt Review when: Payments are not received according to the payment plan. The amount being negotiated is not accepted. When a counteroffer is not accommodated.

If we can't settle your debt or if you're not satisfied up to the point of us settling your debts — for any reason — you can cancel anytime without any penalties or fees other than any fees earned associated with prior settled debts. That's right! We get results or you don't pay.

Debts may be canceled in a variety of ways, including through negotiations between the creditor and the debtor, debt relief programs, and personal bankruptcy. Debts forgiven by a creditor are generally considered taxable income.

Consequences of Cancelling

Your debts will be reinstated. They will start incurring interest again, and it may be backdated. Your credit file will reflect that your Debt Agreement remains “not finalised” until the default is cleared after seven years. Your creditors can apply to make you bankrupt through court.

The following will happen after a consumer cancels debt review: The original contractual interest rates will become applicable again. Waived delinquent payment penalties may get levied against current accounts. Credit providers may start legal action as the consumer will no longer have protection.

Can debt review reversed? ›

It's entirely possible to withdraw from debt review, but you should note that the process isn't a simple one. Once a court has confirmed that you are over-indebted and qualify for debt review, only a judge can reverse that decision.

Contact your creditors immediately; don't wait for them to contact you. Even if your payment history is less than perfect, you will still make better arrangements by being forthright. Explain your current situation. Tell them your family income is reduced and you are not able to keep up with your payments.

You can withdraw from Debt Review prior to a Form 17.2 (prior to being declared over-indebted according to the National Credit Act).

Once the debt counsellor issues Form 17.2, you are committed to debt review until you can prove to the court that you are no longer over-indebted. However, once the debt rearrangement order is granted, the only way to exit debt review is by paying all your debt. You may then apply for a clearance certificate.

If you fail to make payment in no uncertain terms, you are taking a step back and further away from reaching financial freedom again. Your creditors will have sufficient legal grounds to terminate your Debt Review and commence legal action against you.

The difference between debt counselling and debt review. Debt counselling is the service that a debt counsellor provides to an over-indebted South African consumer struggling with their debt, and debt review is a regulated programme that a debt counsellor will place successful debt counselling applicants under.

You may at any time change debt counsellors provided that all DC fees are paid up to date and we will facilitate this process. It is important to note that your new debt counsellor cannot restart the process and is not entitled to charge restructuring fees again.

How Long Will My Name Be Flagged as Under Debt Review. The period during which your name is flagged as under debt review is directly tied to the length of your debt review process. Typically, this process can span anywhere from 36 to 60 months, depending on the amount of debt and the repayment plan agreed upon.

If you've already paid the debt

If you've paid the debt the best thing you can do is call the creditor to tell them to stop the bailiff from coming to your home. You can find the creditor's name on the notice of enforcement use this to search online for their telephone number.