How to Become A Debt Counsellor South Africa

Debt Counsellor a person who offers professional advice on methods of debt repayment.

Below are requirement in order Become A Debt Counsellor South Africa

Be at least 18 years of age or older,

Have a clean credit record.

Not work at a debt collection or related agency.

Have a grade 12 certificate.

Have a minimum of 2 years working experience in any of the following fields:

Application for Registration as a Debt Counsellors in South Africa

In terms of the National Credit Act, a person who wants to apply for registration as a debt counsellor:

  • Must be a natural person.

A natural person may not be registered as a debt counsellor if that person:

is under the age of 18 years;

As a result of a court order, is listed on the register of excluded persons in terms of section 14 of the National Gambling Act, 2004

is subject to an order of a competent court holding that person to be mentally unfit or disordered.

Has been removed from an office of trust on account of misconduct relating to fraud or the misappropriation of money, whether in the republic or elsewhere;

Has ever been a director or a member of a governing body of an entity at the time that such entity has – been involuntarily de-registered in terms of public regulation, brought the consumer credit industry to disrepute or acted with disregard for consumer rights generally

What is the Debt Counselling Process?

In practise, a consumer will usually consult a Debt Counsellor when he or she realises that he or she cannot meet his or her monthly obligations.

In other instances, the consumer who has defaulted on payment on a particular credit agreement may receive a letter in terms of Section 129 of the Act from the credit provider that informs him/her of the default and refers him/her to, amongst others, a debt counsellor.

Consumer consults a debt counsellor by completing this Free Online Application for Assessment for known as the Form16 or by sending us an email to info@ndrc.org.za

A new monthly budget is made which covers all basic needs.

Credit providers will supply information on all debts.

A new repayment plan is made and sent to the creditors.

Credit providers agree or make counter-proposals.

How can I get out of debt Counselling in South Africa?

Unless all the accounts are paid up or the consumer becomes entitled to a clearance certificate, the only way to terminate the debt review process, according to the NCR’s Withdrawal from Debt Review Guidelines, is to apply to a court for either the rescission of the debt review order.

What happens if you have debt and leave South Africa?

If you move overseas and you decide to ignore your outstanding debt in South Africa, your creditor will take this as you defaulting on it and you will receive penalties for doing this.

This could include debt collector fees, which can be hefty. You will also be charged interest on the entire lumpsum that’s outstanding.

How long does debt Review stay on your name in South Africa?

On the question of how to remove debt review status, you need a clearance certificate from your counsellor and present it to the credit bureau

You might be asking ‘how long does debt review stay on your name? ‘. This usually takes five years as your borrowing history will indicate your default and payment history.

Can I leave South Africa with debt?

Yes, but you will have to explain how the personal debt will be settled, for example from local sources or from transfers from abroad. However, if you owe the South African Revenue Service (SARS) money, they will not issue a tax clearance certificate.

Can you go to jail for debt in South Africa?

While you could spend up to six months in jail, there are also some fines that you may have to pay including those of the attorney and court costs. However, some loans are referred to as “civil” debts which you cannot go to jail for.

How long can you legally be chased for a debt in South Africa?

Time limitations The Statute of Limitation is three years in South Africa. Once this time period has elapsed the debtor can refuse to pay the outstanding account, unless summons has been issued by the courts prior to the expiration date.

Do debts expire?

New South Wales is the only territory where a debt is completely cancelled after the statute of limitations. This means that you can still make attempts to recover the debt, but you need to tread carefully. Once a debt is statute barred, all you can do is ask for payment.

What happens if you ignore a debt collector?

If you continue to ignore communicating with the debt collector, they will likely file a collections lawsuit against you in court. If you are served with a lawsuit and ignore this court filing, the debt collection company will then be able to get a default judgment against you.