Explore the essential debt review forms used in South Africa, their purposes, and the relevant sections of the National Credit Act. Download templates and gain insights into the debt review process.

The National Debt Review Center

Debt Review Forms or Debt Counselling Forms used in the industry.

Let’s dive into the details of the most used debt review forms in South Africa. These forms play a crucial role in the debt review process, ensuring transparency and compliance with the National Credit Act (NCA).

Here’s a breakdown of the relevant forms, their purposes, and the corresponding sections of the NCA.

Note: we will share the court documents and affidavit templates on our next article.

Form 16: Application for Debt Review

• Purpose: This form serves as the initial application by a consumer to undergo debt review.
• NCA Section: It falls under Section 86(1) – 86(4) of the National Credit Act (Act 34 of 2005).
• Description: When you submit Form 16, a debt counsellor will assess your application to determine if you are eligible for debt counselling.

Form 17.1

• Purpose: This form informs credit providers and credit bureaus about a consumer’s application for debt review.
• NCA Section: It aligns with Section 86(4) – 86(5) of the NCA.
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Form 17.1 Follow Up

• Purpose: This form serves as a reminder and a follow up that the period during which the credit providers should have responded has lapsed and the debt counsellor have not received the Certificate of balance .
• NCA Section: It aligns with Section 86 of the NCA.
• Description: Debt counsellors use this form to notify relevant creditors that if they fail to provide the certificate of balances the debt counsellor will. Proceed with proposals based on the information as provided by the Consumer(s), report your failure to co-operate within reasonable time to the NCR, for their further investigation and retain copies of both our 17.1, as well as this letter and if necessary, to present them in Court as proof of your failure to adhere to Sections 86(5)(a) and 86(5)(b) of the NCA.

Form 17.2 – Accepted

• Purpose: This notice serves to advise creditors that the consumer’s application for Debt Review was successful, and the debt obligations are in the process of being restructured. it also advises that Payments to Credit Providers will only start once all fees (Legal & Restructuring) have been paid in full and give instructions to CANCEL any debit orders on all accounts with immediate effect, if the client have opted or arranged for monthly payments through the Payment Distribution Agency (PDA).
• NCA Section: It aligns with Section 86(4) & 24(10) of the NCA.
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

DETERMINATION OF OVER INDEBTEDNESS FORM

• Purpose: The debt counsellor has the statutory power to recommend that the consumer be declared over-indebted, Section 85(b), Section 87(1) and/or Section 88(1)(b) of the National Credit Act allow the debt counsellor powers to declare the consumer over-indebted or not over-indebted.
• NCA Section: It aligns with Section 85(b), Section 87(1) and/or Section 88(1)(b) of the National Credit Act
• Description: Debt Counsellors use this form to confirm if the debt review applicant is overindebted or not.

Regulation 24 (4) of the NCA

• Purpose: In the event that a credit provider fails to provide a debt counsellor with the corrected information within 5 business days of such verification being requested, the debt counsellor may accept the information provided by the consumer as being correct.
• NCA Section: It aligns with Regulation 24 (4) of the NCA.
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Form 17.2 Rejected

• Purpose: This notice serves to advise creditors that the consumer’s application for Debt Review was rejected in terms of Section (86)7(a) of the National Credit Act 34 of 2005
• NCA Section: It aligns with Section (86)7(a) & 24(10) of the NCA.
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Form 17.2(c)

• Purpose: This notice serves to advise creditors that the consumer’s application for Debt Review was restructured, and a court / Tribunal order has been issued or granted. This form further advises all registered credit bureaus to update the consumer’s record, within 5 days of receipt of the notice.
• NCA Section: It aligns with Section (86)7(a) & 24(10) of the NCA.
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Form 17.3(a) Change in Employment Status

• Purpose: This notice serves to advise creditors that the consumer’s has applied for and has subsequently been placed under Debt Review in terms of Section 86 of the National Credit Act 34 of 2005. As a consequence, the consumer cannot meet the obligations agreed upon in the debt review arrangement order.
• NCA Section: It aligns with Section (86)7(a) & 24(10) of the NCA.
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Form 17.3(b) Change in Personal Circumstances

• Purpose: This notice serves to advise creditors that the consumer’s has applied for and has subsequently been placed under Debt Review in terms of Section 86 of the National Credit Act 34 of 2005. As a consequence, the consumer cannot meet the obligations agreed upon in the debt review arrangement order.
• NCA Section: It aligns with Section (86)7(a) & 24(10) of the NCA.
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Form 17.7 Transfer of DC document

• Purpose: This notice serves to advise creditors that the consumer’s has requested to be transferred to another Debt Counsellor with immediate effect. In addition, the form will contain the previous debt counsellor details as well as the new debt counsellor details.
• NCA Section: It aligns with Section (86)7(a) & 24(10) of the NCA.
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Form 17.W – Rejected (Withdrawal from Debt Review)

• Purpose: This notice serves to advise creditors and relevant parties that the consumer’s application for debt review was rejected by the Magistrate due to the no longer overindebted recommendation made by the debt counsellor.
• NCA Section: It aligns with Section (87) & 24(10) of the NCA. Read more about debt review removal here
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Form 17.W – Debt review Court Order Rescinded

• Purpose: This notice serves to advise creditors and relevant parties that the consumer’s application for debt review was Rescinded by the Magistrate or Tribunial.
• NCA Section: It aligns with Section (87) & 24(10) of the NCA. Read more about debt review removal here
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Form 17.W – Debt Review Application Suspended

• Purpose: This notice serves to advise creditors, consumer(s) and relevant parties that the Debt counsellor has suspended provision of service due to non-cooperation by the Consumer. The Debt counsellor remains Debt counsellor on record. Note: Receiving this form from your debt counsellor does not mean that the debt review flag is removed from your credit profile. The debt review listing will remain on your credit profile until all debt obligations that were placed under debt review are settled in full or you are only left with your home loan.
• NCA Section: It aligns with Section (87) & 24(10) of the NCA. Read more about debt review removal here
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Form 19 – Debt Review Clearance Certificate

• Purpose: A Debt Review Clearance Certificate, also known as Form 19, verifies that a consumer has fulfilled all obligations under every credit agreement that was part of a debt review process. It signifies the successful completion of the debt review, restoring the individual’s credit status.
• NCA Section: It aligns with 71(2)(b)(i) of the National Credit Act 34 of 2005. Read more about debt review clearance certificates here
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Notification of Reckless Credit Investigation

• Purpose: This notice serves to inform a credit provider that the debt counsellor intends to investigate possible reckless credit and therefore request the creditor to provide the following documentation (Copy of the Original Credit Application in the consumer’s handwriting, Copy of the ITC report at the time of application, Copy of the consumer’s salary advice at the time of application, Copy of the signed quotation and pre-agreement, Copy of a meaningful affordability assessment, Copy of the agreement, Copy of the full statement from inception date) in order for the debt counsellor to conduct a reckless lending assessment/investigation in terms of Sec 80 – 83 of the National Credit Act: This recommendation will be made to court in terms of Sec 86(7)(c)(ii) as soon as documents from all parties involved in the investigation has been received and payments will be deferred in terms of Sec 84(1) & (2)(b) until the court has made a final ruling regarding the reckless credit investigation. Creditors are requested to provide these documents within 15 business days.
• NCA Section: It aligns with SECTION 80 – 84 OF THE NATIONAL CREDIT ACT 34 OF 2005. Read more about reckless lending investigations here
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Final Proposal – Debt Review (Debt Review Proposal)

• Purpose: This notice is to inform creditors that the consumer’s Debt Review application has been approved, and their debt obligations are currently being restructured. The debt counsellor certifies that they have thoroughly and impartially evaluated the consumer’s monthly household budget and commitments, ensuring that all luxury and non-essential expenditures have been adjusted or eliminated. The counsellor affirms that, based on the available information, this represents a just and unbiased account of the client’s financial status. This form provides a detailed account of all current and proposed amounts, interest rates, and terms, in accordance with the DCRS rules or through the use of reasonable calculations.
• NCA Section: It aligns with Section (86)7(a) & 24(10) & SUB PARAGRAPH 24(7)(B) OF THE REGULATIONS OF THE NATIONAL CREDIT ACT 34 OF 2005
• Description: Debt counsellors use this form to notify creditors/relevant parties of the debt review process initiated by the consumer.

WRITTEN OUTCOME OF RECKLESS LENDING ASSESMENT

• Purpose: This notice serves to confirm that the debt counsellor had followed the proper procedure in determining if the credit was granted reckless or not and mentions the consequences thereof. download the template to learn more. This recommendation will be made to court in terms of Sec 86(7)(c)(ii) as soon as documents from all parties involved in the investigation has been received and payments will be deferred in terms of Sec 84(1) & (2)(b) until the court has made a final ruling regarding the reckless credit investigation.
• NCA Section: It aligns with SECTION 80 – 84 OF THE NATIONAL CREDIT ACT 34 OF 2005. Read more about reckless lending investigations here
• Description: Debt counsellors use this form to notify relevant parties of the debt review process initiated by the consumer.

Frequently Asked Questions

What is a form 19 in debt review?

A Form 19, also known as a Debt Review Clearance Certificate, is a formally recognized document issued by a registered debt counsellor. This certificate verifies that a consumer has satisfied all obligations under every credit agreement that was subject to a debt review court order or debt review repayment agreement.

The issuance of a clearance certificate signals the end of a successful debt review process. Even if the consumer has a long-term agreement that was subject to debt review, they can obtain a clearance certificate after every other short-term credit agreement under debt review is paid in full.

Once the credit bureaus receive your Clearance Certificate, they will remove the debt counselling flag off your profile. In addition to this, they will remove all your default listings and judgments. The only record that will remain is your payment history. According to the Credit Act, your payment history will remain on your record for two years.

What is form 17.1 debt review?

Form 17.1 is an official document used in the debt review process. It is issued by a registered debt counsellor to notify a consumer’s various credit providers that the consumer has applied for debt counselling and that the debt review process has begun. This form does not indicate that the person needs help, but rather requests the credit providers to send information to the debt counsellor to assess the consumer’s overall debt status. It is the receipt of this form that makes the credit providers aware that the consumer is seeking help with their debt situation.

What is a form 16 in debt review?

Form 16, also known as the Debt Review Application Form, is an official document that a consumer completes with the guidance of a debt counsellor when applying for debt review. This form contains the personal details of the consumer and the consumer’s financial circumstances. The debt counsellor uses this form to assess the consumer’s financial situation.

What is 17.4 form debt review?

Form 17.4 is now formally known as a 17.W, also known as the Debt Review Cancellation Form, is an official document used in the debt review process. Whether cancelled voluntarily or involuntarily, completing a Debt Review Cancellation Form is required by the National Credit Act (NCA).

What is Form 17.7 debt review?

Form 17.7 is used in the debt review process when a consumer wants to transfer from one debt counsellor to another. This document is vital to initiate the transfer process. Once the consumer has sent Form 17.7 to their new debt counsellor, the new debt counsellor will handle the rest of the transfer process.

What is 17.3 form debt review?

It’s used to communicate changes in a consumer’s circumstances that might affect their ability to make the usual debt review payment.

When a consumer’s circumstances change dramatically, for example, due to a national lockdown or a slowdown in business, the consumer or their debt counsellor can use Form 17.3 to inform the banks of these changes. The form is typically accompanied by proof of the changed circumstances, such as a letter from the consumer’s employer or bank statements.

The banks then review the consumer’s situation and, in most cases, extend the repayment terms by three months, similar to what they do for those outside of debt review. 

What is Form 17.2 B debt review?

Form 17.2 is a document used by Debt Counsellors in the debt review process. Here’s what it does:

• It notifies a consumer’s various credit providers that the consumer has been accepted (or rejected) for debt restructuring through the courts, commonly referred to as debt review.
• This form is sent after the Debt Counsellor has conducted a thorough review of the consumer’s debt situation.
• The form will indicate one of two things:
  1. Accepted: The consumer appears to be over-indebted (or will soon be over-indebted) and will be going ahead with the debt review process. This means they will be heading to the local courts to ask for a court order restructuring how they pay their debts each month.
  2. Rejected: The consumer applied for a review of their debt (and some help from a Debt Counsellor with their budgeting) but they will not be going ahead with the court process.

What is Section 88 debt review?

Section 88 deals with the effect of debt review or re-arrangement order or agreement.

s88(1) A consumer who has filed an application in terms of section 86( l), or who has 30 alleged in court that the consumer is over-indebted, must not incur any further charges under a credit facility or enter into any further credit agreement, other than a consolidation agreement, with any credit provider until one of the following events has occurred:

(a) The debt counsellor rejects the application and the prescribed time period for 35 direct filing in terms of section 86(9) has expired without the consumer having so applied;
(b) the court has determined that the consumer is not over-indebted, or has rejected a debt counsellor’s proposal or the consumer’s application; or
(c) a court having made an order or the consumer and credit providers having 40 made an agreement re-arranging the consumer’s obligations, all the consumer’s obligations under the credit agreements as re-arranged are fulfilled, unless the consumer fulfilled the obligations by way of a consolidation agreement.

(2) If a consumer fulfils obligations by way of a consolidation agreement as contemplated in subsection l(c), or this subsection, the effect of subsection (1) continues 45 until the consumer fulfils all the obligations under the consolidation agreement, unless the consumer again fulfilled the obligations by way of a consolidation agreement.

(3) Subject to section 86(9) and (IO), a credit provider who receives notice of court proceedings contemplated in section 83 or 85, or notice in terms of section 86(4)(b)(i), may not exercise or enforce by litigation or other judicial process any right or security 50 under that credit agreement until-

(a) the consumer is in default under the credit agreement; and

(b) one of the following has occurred:

(i) An event contemplated in subsection (l)(a) through (c); or

(ii) the consumer defaults on any obligation in terms of a re-arrangement agreed between the consumer and credit providers, or ordered by a court or the Tribunal.

(4) If a credit provider enters into a credit agreement, other than a consolidation agreement contemplated in this section, with a consumer who has applied for a debt re-arrangement and that re arrangement still subsists, all or part of that new credit agreement may be declared to be reckless credit, whether or not the circumstances set 10 out in section 80 apply.

(5) If a consumer applies for or enters into a credit agreement contrary to this section, the provisions of this Part will never apply to that agreement.

The National Credit Act 34 of 2005

What is 17.2 debt review?

Form 17.2 is a document used by Debt Counsellors in the debt review process. Here’s what it does:

• It notifies a consumer’s various credit providers that the consumer has been accepted (or rejected) for debt restructuring through the courts, commonly referred to as debt review.
• This form is sent after the Debt Counsellor has conducted a thorough review of the consumer’s debt situation.
• The form will indicate one of two things:
  1. Accepted: The consumer appears to be over-indebted (or will soon be over-indebted) and will be going ahead with the debt review process. This means they will be heading to the local courts to ask for a court order restructuring how they pay their debts each month.
  2. Rejected: The consumer applied for a review of their debt (and some help from a Debt Counsellor with their budgeting) but they will not be going ahead with the court process.

What is a Section 129 debt review?

A Section 129 debt review, also known as a Section 129 notice or a Letter of Demand, is a legal notice issued by a creditor to a debtor in South Africa. It is delivered in accordance with Section 129 of the National Credit Act (NCA) and informs the consumer that they are in arrears of a particular amount in unpaid instalment(s) as of a certain date.

The notice is the final stage before the legal procedure begins, and it is one of the last options to prevent legal action from the creditor. After the client has been in arrears for more than 20 working days, the credit provider or their attorney may issue a Section 129 notice at any time. The credit provider may not take any legal action until it has completely satisfied with the NCA requirements outlined in sections 129 and 130.

Upon receiving the Section 129 notice, consumers have the right to either remedy the default by making the outstanding payments within a specific timeframe or make alternative payment arrangements with the credit provider, subject to negotiation. If you receive a Section 129 notice, it is important to act quickly and effectively in order to protect your rights.

Learn more about letter of demands here

What is Section 86 10 of debt review?

Section 86(10) of the National Credit Act 34 of 2005, often referred to in the context of debt review in South Africa, provides that a credit provider may terminate a debt review in the prescribed manner where the consumer is in default with a credit agreement that is being reviewed.

This means that if a consumer, who is under debt review, fails to make the agreed payments, the credit provider has the right to terminate the debt review process. Once the debt review is terminated, the credit provider can take legal action to recover the full amount owed.

s86(10) If a consumer is in default under a credit agreement that is being reviewed in
terms of this section, the credit provider in respect of that credit agreement may give
notice to terminate the review in the prescribed manner
(a) the consumer;
(b) the debt counsellor; and 5
(c) the National Credit Regulator,
at any time at least 60 business days after the date on which the consumer applied for the
debt review.

National Credit Act 34 of 2005

Can I be removed from debt review?

Yes. Visit The National Debt Review Center for more information about debt review removal.

What is Form 40 NCR?

Form 40 NCR is an Annual Financial Statement Return that a registered credit provider must submit to the National Credit Regulator in South Africa. This form is submitted within 6 months after the registered credit provider’s financial year-end.

The form 40 NCR includes various sections such as:

• Income Statement: This includes revenue details like interest income on credit agreements that fall under the NCA, initiation and service fee income from NCA agreements, commission, fees or other income earned from credit insurance, bad debts recovered on NCA agreements, and other income.
• Expenses: This includes bad debt write-offs, change in provision for bad debt, interest paid, directors’ remuneration, salaries and wages, staff training costs, exceptional loss/expense, and other expenses.
• Net Income: This includes net income from operations, value-added tax and STC, taxation, net income after tax, minority interest, and net income.
• Balance Sheet: This includes equity, total debt, total other liabilities, gross debtors, provision for bad debt, net debtors, and other assets.
• Black Economic Empowerment: This includes the percentage of ownership/shareholding in the credit provider by historically disadvantaged persons (HDP) and others, commitments made with regards to Broad Based Black Economic Empowerment.
• Employment Equity: This includes whether an Employment Equity plan has been submitted to the Department of Labour, measures taken with regards to employment equity, and employment records.

The form is completed by a designated person and reviewed by an auditor or accounting officer.

How do I get out of debt review without paying?

You can only get out of debt review without paying the debt review removal fees only if you were wrongfully listed under debt review and you have escalated the matter to the NCR for further review and investigation or if you understand the debt review removal process and can be able to do it yourself.

What is a D3 debt review status?

The D3 status in the debt review process indicates that formal debt restructuring through the courts has commenced. This status is used when the debt review process has been initiated and is in progress, but a court order has not yet been granted. If the date of the D3 status is older than 60 days, it means that the debt review process is not finalized or completed, and therefore the debt review process can be disputed or cancelled, and the debt review flag can be removed.

Learn more about debt review statuses here

NCR List of Debt Review Forms

Debt Counselling Video

Watch this video to learn more about debt counselling in South Africa