When can a credit provider terminate debt review?
A credit provider has the right to terminate the debt review process under certain circumstances. One of the primary reasons for termination is if you, as the consumer, fail to meet the agreed-upon terms of the debt review. This could include missing payments or failing to adhere to the repayment schedule that was established during the debt review process.
If you default on your payments, the credit provider can issue a Section 86(10) notice. This is a legal notice that effectively withdraws the credit provider from the debt review process. It’s important to note that issuing a Section 86(10) notice is not a decision that credit providers take lightly. It typically happens after repeated missed payments and attempts to communicate with the consumer.
Once a Section 86(10) notice has been issued, the credit provider has the right to proceed with legal action to recover the debt. This could involve taking the case to court, where a judgement may be made against you. This could result in further financial implications, such as having your assets seized to repay the debt.
It’s important to remember that the goal of the debt review process is to help consumers manage their debt more effectively and avoid situations like these. Therefore, it’s crucial to communicate openly with your credit providers and debt counsellor, and to make every effort to meet the terms of your debt review. If you’re struggling to make payments, it’s always a good idea to seek advice from The National Debt Review Center.
Got More Questions? We have gathered the most frequently asked questions about exiting debt review here.
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