Debtfree Magazine September 2019
The September 2019 issue of Debtfree Magazine. SA's Free debt counselling and debt review magazine. We discuss a court case that changes it all as well as possible changes to the NCA & Regulations.
The September 2019 issue of Debtfree Magazine. SA's Free debt counselling and debt review magazine. We discuss a court case that changes it all as well as possible changes to the NCA & Regulations.
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ARE YOU TRAPPED IN DEBT REVIEW?<br />
SHOULD YOU LEAVE<br />
DEBT REVIEW?<br />
You may wonder why someone in financial difficulty, who has found<br />
this brilliant system of repaying their debts, may want to leave the<br />
process before all their debts are paid up. First, let’s consider who<br />
may want to leave debt review and why?<br />
Some consumers have chatted to Debt Counsellors over the phone and<br />
have asked for a debt review not realizing that the Debt Counsellor would<br />
be obliged to inform the National Credit Regulator (NCR) that they had<br />
done so. The NCR in turn notifies all the credit bureaus that the person has<br />
asked for a review of their debt and the various credit bureaus put what is<br />
called a ‘debt review flag’ on the person’s profile. This flag unfortunately<br />
scares credit providers who worry that if they give someone with such a flag<br />
on their credit report credit it may be considered legally reckless. Credit<br />
providers can be fined up to R1 million for granting reckless credit. So, most<br />
simply cut off such a consumer’s access to credit until that flag is removed.
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