Creditors not acting in good faith | Fin24
 
  • Rolling blackouts

    Power cuts could slash SA's GDP growth to just 0.3%, says market research firm Intellidex.

  • 'Really close to the edge'

    Eskom is being forced to operate without 40% of it nominal capacity, says energy analyst Chris Yelland.

  • Insurance Fraud

    Life insurers say the "buying and renting of dead bodies" to obtain fake certificates is popular.

Loading...

Creditors not acting in good faith

Feb 07 2014 10:30
A Fin24 user is worried about being listed as being in default for non-payment. He writes:

I have been off debt review for less than year.

I contacted all my creditors and made arrangements to continue payments normally, and settled smaller debts.

I have made arrangements with the credit provider to pay and increase instalments to cover the gap.

Can the credit provider list a person as "default for non-payment" if original payments fell behind due to being on debt review - even though one was still paying something?

Renée Marais NCRDC1780, an independent debt counsellor, responds.

Firstly, congratulations for coming out of debt review and for settling your smaller debt first.

It has been proven many times over that the smart way to get out of debt is by paying off smaller credit first.

Secondly, I am sorry the creditors are not acting in good faith and following the intentions of the National Credit Act 34 of 2005.

This act was proclaimed with the aim of getting consumers out of debt and helping them to become economically viable and with good credit records.

Debt review listings on the National Credit Regulator (NCR) DebtHelp system are there for the specific reason not to have consumers be blacklisted. Yet creditors still do that.

They are allowed to list you, as strictly speaking when under debt review you are paying smaller instalments and are in fact behind as per the original agreements.

Because you were proactive in being under debt review when you had problems and this is a voluntary process, the creditors should respect that.

I would suggest you contact your previous debt counsellor and request that they give you a letter stating that you were a reliable and prompt payer.

Get all the proof of payments and statements of all the creditors and send a complaint to the NCR.

On the NCR’s website you will find the complaint form to assist you in clearing your name.

If at the time of debt review the debt counselor obtained a court order for your debt repayment, you need to have the court order set aside.

You could also pay off all your debt first, and then request a clearance certificate from the debt counsellor.

If you have any more questions, you may contact the Debt Counselling Industry and they will put you in contact with a specialist to assist you.

- Fin24

Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.

Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

savings  |  money  |  debt  |  debt review
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...