Debt Review Process

Introduction The task team on debt counselling proposes a set of improved debt review process rules with a view to addressing the main blockages in the debt review process and reducing the backlog of cases under debt review. The improved process rules, which will require voluntary co-operation and give-and-take from all the parties involved, will ultimately be to the benefit of consumers, debt counselors and credit providers. The aim of the improved process rules is also to fast track those cases where there is potential to facilitate the repayment of debt to such an extent that the consumer can resume normal payments in terms of the original agreement. These process rules are intended to be voluntary adopted by the credit industry as process rules under an approved Section 48 code to combat over-indebtedness as well as by debt counselors and PDA’s under an envisaged Debt Counsellor and PDA code of conduct. Nothing contained in these improved rules shall be construed as diminishing the legal rights of any party. The affordability assessment referred to in the Task Team Agreement relates to the affordability assessment conducted by the debt counsellor (as explained in annexure c). This affordability assessment should not be confused with the credit provider affordability assessment.