THE DEBT REVIEW COMPLIANCE INVESTIGATION TASK TEAM
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LET DRICA INVESTIGATE YOUR DEBT REVIEW AND CLEAR THE FLAG WITHIN 7 DAYS
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Who is Drica?
- Debt Counselling is a voluntary and consensual process which results in the Tribunal or a Magistrate Court re-arranging the consumer's debt obligations.
- You can only be placed under debt review when you have personally applied through an NCR accredited Debt Counsellor.
- Drica is an autonomous independent agency that is established to ensure that your debt review process was lawfully conducted and complied with the prescribed NCA debt counselling regulations: VISIT DRICA WEBSITE
What Does DRICA Investigate?
NCA (national credit act) compliance regulations and procedures when a consumer applies for debt review:
1. Consumer approach Debt Counsellor to Apply for Debt Review - Fills in and signs Form 16
2. Consumer supplies Debt Counsellor with necessary information relating to his/her financial position for assessment
- The debt counsellor must ensure that the consumer understands that debt review is a voluntary, consensual process which results in the Tribunal or a Magistrate Court re-arranging the consumer's debt obligations
- The debt counsellor must ensure that the consumer understands that debt counselling does not mean that you will not pay what is owed to the credit providers.
3. The debt counsellor will inform your credit providers of your application by sending Form 17.1 and notify the credit bureaus by Updating the NCR Debt Help System
- Form 17.1 serves as a notification to credit providers that you have applied for debt review and also to request the credit providers to supply the consumer's account balances. Consequently credit providers cannot take legal action against the consumer.
At this point - regardless of whether you are over-indebted or not - a flag will be displayed on your credit bureau records that you have applied to be placed under debt review
4. Once the Debt Counsellor receives the consumer's accounts statements from the credit providers, he/she will then perform an assessment in a prescribed manner using the applicable tools to determine whether the consumer is over-indebted or not.
- If the consumer is not over-indebted, the debt counsellor will reject the application and update the NCR Debt Help System accordingly. The debt counsellor must inform the consumer of the application rejection and the reasons for rejecting the application in writing.
The debt review flag should be removed from your credit bureau records.
- If consumer qualifies to be placed under debt review, the debt counsellor sends out Form 17.2 to the credit providers and notifies the credit bureaus by updating the NCRDH system. Form 17.2 is a proposal to credit providers for new repayment arrangements.
5. After considerations of the debt restructuring proposal by the credit providers, the matter is referred to the Magistrate or the Tribunal Court to make the agreed proposal an order of the court.
Termination of Debt Review & Issuance of Clearance Certificate -
A consumer can exit the debt review process at any time under the following conditions:
Clearance Certificate -
A consumer whose debts have been arranged must be issued with a Clearance Certificate within seven days after the Consumer has:-
(a) Satisfied all obligations under every credit arrangement that was subject to the re-arrangement order or
(b) Demonstrated:
i) Financial ability to satisfy the future obligations in terms of the re-arrangement order under-
(aa) a mortgage agreement
(bb) a long term agreement
ii) that there are no arrears on the mortgage (long term) agreement
iii) that all obligations under every agreement has been settled in full.
The consumer must supply paid up letters from credit providers
Application for Rescission of the Debt Review Order
The consumer can file an application for rescission of the Debt Review court order at the court that granted the order
* The consumer can only withdraw from debt review before Form17.2 is issued
* After Form 17.2 is issued, the consumer can approach the magistrate Court to be declared not over-indebted.
Requirements for Application to Court to be declared not over-indebted:
* Form 16; Form 17.1 and Form 17.2 documents - these are the documents that were exchanged between consumer; debt counsellor and credit providers during the application stage
* Form 17.W - issued by the debt counsellor when (a) you have requested termination of service or b) when the debt counsellor has suspended the service
* Settlement Confirmation Letters for paid up accounts (issued by the credit providers when you settle the account)
* Account balance statements for any outstanding accounts - issued by the credit provider or by the PDA (payment distribution agency)
How can Drica assist?
| CLEARANCE CERTIFICATE -(5 DAYS) | INVESTIGATION - (7 DAYS) | COURT APPLICATION |
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Clearance Certificate can be acquired under the following conditions:
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Compliance Investigation of the following:
If your answer is No to any of the above, the Debt Review Agreement and/or Processes are deemed Unlawful.
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Application to be declared no longer over-indebted
Drica can assist with compiling information on your debt review situation through an Assessment Questionnaire; Standard Financial Circumstance Form and Account Status Form. The questionnaire and forms will be used to establish if correct procedures were followed to place you under debt review and to determine whether:
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