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

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