Letter of Decline Template

DRAFT — Letter of decline of proposal, one per credit agreement.

<Credit Provider Name> / <Debt Review Contact Department> / <Street Address Line 1> / <Street Address Line 2> / <Street Address Line 3> / <Postal Code>.

To: Debt Counsellor Name: <insert debt counsellor name and company>. Per Fax/e-mail <insert details>. *delete that which is not applicable. Date: <YYYY/MM/DD>. Our Ref: <insert DR Number>.

Dear <insert addressee>,

Re: Debt Rearrangement Proposal. Customer Name: <insert customer name>. ID Number: <insert customer ID number>. Account: <Account Number> <Account Description as per Credit Provider>. <insert product category as per proposal>.

We refer to the above matter as well as the debt re-arrangement proposal for this credit agreement. Your debt re-arrangement proposal has not been accepted for this credit agreement due to the following reason/s:

a) Credit agreement is not eligible for inclusion in the debt review process (legal action is in process).

b) Over indebtedness finding is not accepted as a true reflection of the consumer's situation and will be contested.

c) Affordability assessment is not accepted as reasonable given the consumer's income, obligations and balance sheet situation and will be contested. (Luxury expenses/assets retained and/or excessive expenses provided for and/or income understated and/or household situation not fully taken into account)

d) Proposal does not solve the case (all debts being repaid in full on the re-arranged terms within a reasonable time).

e) Proposal does not treat all categories of credit providers and credit agreements equally and fairly. (Affordability allocation and/or restructuring rules model do not comply with the NCR TT recommended debt restructuring principles)

f) Proposal requires unacceptable/unenforceable concessions (outside Section 3 of the NCA and what agreed consent rules allow).

g) Assessment summary, restructuring proposal and/or payment plan summary deviates from the validation version on the central DCRS (where the relevant rules are approved and deployed on the DCRS).

h) Proposal is based on incorrect data (in conflict with what was provided on the COB).

i) Proposal does not provide for servicing of mandatory insurance obligations linked to the agreement.

j) Initial and annuity DC and PDA fees are not provided for in proposal.

k) Other (free format for any messages not catered for as per a) to j)).

Please note that the payment terms may be extended as a result of escalating balances between the date of provision of the certificate of balance (COB) and finalisation of the matter.

If you have any queries, please contact us on: Tel no: <Tel Area code> <Telephone number>. Fax No: <Fax Area code> <Fax number>. Email Addr: <Email Address>.

Yours faithfully, Manager, <Debt review department name>.