It should take about 60 days or less to deal with a debt counselling matter. But it can take up to 100 days or much longer to have
the matter solved or put in its rightful place and back on track if the parties are disagreeing all the time at various stages or
they dispute some aspects during the process.
In a perfect world, where everybody plays by the rules and nobody tries to infringe on others rights the process is supposed to
flow as follows below.
CN stands for = consumer
CP stands for = credit provider
DC stands for = debt counsellor
Preliminary Days (Early Days) before debt counselling comes into the picture
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day -180 to -10 : CP must send CN section 129 letter
: Section 129 letter must "advise" CN of his right to debt counselling
: CN may negotiate arrangements directly with CP to cover arrears
: Alternatively CN "may" consult a debt counsellor
day -10 to 0 : CN must seriously consider consulting with a debt counsellor
: If CN does Not consult a debt counsellor by day Zero
: -- CP may enforce the credit agreement
: -- CN to bear the full consequences of this enforcement
: -- If CN "only" approaches DC "after" receiving summons
: -- -- This credit agreement for the summons may NOT be included in the debt counselling!!
: -- -- Only "other" credit agreements will be allowed as we go into debt counselling below
Debt Counselling only comes into the picture from here below
*******************************************************
day 1 to day 5 : DC & CN must fill Form 16 (application for debt counselling)
: CN must pay application fee to DC
: DC must update NCR debt help website (NCR debt help will notify all Credit Bureaus)
: DC must obtain CN input docs = payslip, bank stat, account stat, credit bureau report
day 5 to day 10 : DC must send Form 17.1
: DC must update NCR debt help website
: DC must obtain COB from CP (regulation 24)
day 10 to day 15 : DC must send reminder to CP if COB still Not received
day 15 to day 20 : DC must verify all information that is currently in his possession
: If information is all green
: -- DC is now ready to build proposal
: If information is NOT all green
: -- DC may NOT proceed to build proposal
day 20 to day 25 : DC must send 17.2 and proposals to CPs
: If information verification above was NOT all green
: -- DC will probably fail to prepare and send proposal to CP "in allowed time"
: -- CN must pay rejection fee (R300) to DC
: -- DC may terminate relationship with CN (Form 17.4) & the whole debt review
: -- CN may approach "another" debt counsellor (normally a FUTILE exercise) !
: -- DC may optionally "forge ahead" with the proposal and send it, despite being "late".
: -- CP will soon close-in on CN and look for opportunity to enforce the credit agreement
: DC must update NCR debt help website
: If proposal is sent to CP and CN decides to withdraw from Debt Counselling
: -- CN must pay 75% of restructuring fee (R2250 / R3000) to DC
: -- DC must terminate relationship with CN (Form 17.4) & the whole debt review
: -- CP will soon close-in on CN and look for opportunity to enforce the credit agreement
: If DC out of his "own making" does Not send proposal to CP in this allowed time
: -- DC must refund ALL money collected from CN back to CN
: -- CN may seek relief from NCR
: -- DC must terminate relationship with CN (Form 17.4) & the whole debt review
: -- CN may approach "another" debt counsellor (normally a FUTILE exercise) !
: -- DC may optionally "forge ahead" with the proposal and send it, despite being "late".
: -- CP will soon close-in on CN and look for opportunity to enforce the credit agreement
day 25 to day 30 : CN must pay DC restructuring fees
: CP must send reminder to DC if proposal still Not received
: If CN does Not pay DC the restructuring fee
: -- DC may terminate relationship with CN (Form 17.4) & the whole debt review
: -- CN may approach "another" debt counsellor (normally a FUTILE exercise) !
: -- CP will soon close-in on CN and look for opportunity to enforce the credit agreement
day 30 to day 40 : CP must consider proposal and respond
day 40 to day 45 : DC must send reminder to CP if response still Not received
day 45 to day 60 : DC & CP must set-down the matter (Consent Order)
: If CP & DC agree on proposal
: -- DC must update NCR debt help website
: -- CN must pay legal fees
: -- DC must make court application (App must seek Consent Order for proposal)
: -- Court "will" rule in favour of CN
: -- DC must obtain Consent Order and share a copy with CP
: -- CN must begin paying restructured installments as per proposal
: -- CN must begin paying DC monthly after-care fee
: -- At end of payment term, DC must issue CN with clearance certificate, Case is Closed !
: -- If CN defaults during payment term
: -- -- DC may terminate relationship with CN (Form 17.4) & the whole debt review
: -- -- CP may enforce the credit agreement
: -- -- CN to bear full consequences of the enforcement
: -- -- But "change of consumer's circumstances" may be allowed in court !
: If CP & DC disagree on proposal
: -- DC must update NCR debt help website
: -- DC must refer the matter to court
: -- DC must help CN to fill Form 18
: -- CN must pay legal fees
: -- DC must make court application (App must seek Consent Order for proposal)
day 60 to day 70 : -- CP "may" send notice to terminate the debt review (Section 86(10))
: -- If court rules in favour of CN
: -- -- Court will order that the Debt Review process be extended/resume
: -- -- DC must obtain Consent Order and share a copy with CP
: -- -- CN must begin paying restructured installments as per proposal
: -- -- CN must begin paying DC monthly after-care fee
: -- -- At end of payment term, DC must issue CN with clearance certificate, Case is Closed !
: -- -- If CN defaults during payment term
: -- -- -- DC may terminate relationship with CN (Form 17.4) & the whole debt review
: -- -- -- CP may enforce the credit agreement
: -- -- -- CN to bear full consequences of the enforcement
: -- -- -- But "change of consumer's circumstances" may be allowed in court !
: -- If court rules against CN
: -- -- CP may enforce the credit agreement
: -- -- CN to bear full consequences of the ruling
day 70 to day ~ : CP may make a High Court application to enforce the credit agreement (bypassing the Magistrate's Court)
: If DC's earlier court application is still pending before the Magistrate's Court
: -- CN may (and ideally "should") defend on the CP's High Court application
: -- CN must (unfortunately) pay legal costs for his defense (could be significant!)
: -- If high court rules in favour of CN
: -- -- CP's High Court app gets dismissed
: -- -- CP has to "wait" for resolution of the pending matter at Magistrate's Court
: -- If high court rules against CN
: -- -- CP may enforce the credit agreement
: -- -- CN to bear full consequences of the ruling
: -- -- Notwithstanding, CN most likely will have to also pay CP's legal costs !
: If NO matter is pending before the Magistrate's Court
: -- CN should ideally "NOT" defend the CP's High Court application
: -- CP may enforce the credit agreement
: -- CN to bear full consequences of the enforcement
_______________________________________________________________________
Yea, that's it guys ! Sorry for the text "over-running" on the sides, i had to force or make sure that each line sits horizontally
so that it does Not wrap onto the line below and mess the structure of the alignment. You can just look carefully and scroll
sideways where necessary to read the longer line.
I am going to turn this into a Neural Diagram which will show the flow in a pictorial/diagramatic way so that we can all see how
sophisticated it can be :)
Thank you guys for visiting and taking a look at this.
