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A Fin24 user wants to know how to reverse being placed under debt counselling. She writes:
My husband and I went to the bank earlier this month to apply for a home loan. They told us that he qualifies to buy a house for R1.2m, but then said afterwards that he is under debt review.
We got his credit profile and there are no judgments or anything against his name, but we were still declined.
My husband's English is not very good and he usually passes the phone when he cannot manage.
He says someone from Credit Worx phoned him, and that she spoke about reducing his debt and monthly payments to various places.
He agreed, but I really don't think that he understands what he agreed to. How can he reverse this?
Can you please give me some advice on what to do, we are really stressed about this.
Friedl Kreuser, an attorney and manager at 6cents, a division of Summit Financial Partners, responds:
It sounds like your husband may have been placed under debt counselling.
I would advise urgently contacting Credit Worx and enquiring whether they have placed him under debt counselling.
If they have, you can inform them that he does not wish to be under debt counselling and ask that they immediately reject his application and send you proof when they have updated the credit bureaus.
Without a signed application form (Form 16), they should not have been able to place your husband under debt counselling.
It is possible that they used a recording of the phone conversation to verify his "application", but if you explain that this was merely a misunderstanding, they cannot keep him under debt counselling against his will - it is an entirely voluntary process.
If you are not able to resolve the matter with Credit Worx, contact the National Credit Regulator on 0860 627 627 for assistance.
I hope that helps.
- 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.
My husband and I went to the bank earlier this month to apply for a home loan. They told us that he qualifies to buy a house for R1.2m, but then said afterwards that he is under debt review.
We got his credit profile and there are no judgments or anything against his name, but we were still declined.
My husband's English is not very good and he usually passes the phone when he cannot manage.
He says someone from Credit Worx phoned him, and that she spoke about reducing his debt and monthly payments to various places.
He agreed, but I really don't think that he understands what he agreed to. How can he reverse this?
Can you please give me some advice on what to do, we are really stressed about this.
Friedl Kreuser, an attorney and manager at 6cents, a division of Summit Financial Partners, responds:
It sounds like your husband may have been placed under debt counselling.
I would advise urgently contacting Credit Worx and enquiring whether they have placed him under debt counselling.
If they have, you can inform them that he does not wish to be under debt counselling and ask that they immediately reject his application and send you proof when they have updated the credit bureaus.
Without a signed application form (Form 16), they should not have been able to place your husband under debt counselling.
It is possible that they used a recording of the phone conversation to verify his "application", but if you explain that this was merely a misunderstanding, they cannot keep him under debt counselling against his will - it is an entirely voluntary process.
If you are not able to resolve the matter with Credit Worx, contact the National Credit Regulator on 0860 627 627 for assistance.
I hope that helps.
- 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.
