NCR Certification in terms of Section 25 of the National Credit Act

Enquiry

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FAQ

  1. Will my credit rating be affected in future?
  2. We do not list you at any credit bureau. Your creditors list you and such listing could possibly negatively influence your credit rating.

    When debt get settled, either by having paid it off or by prescription or written off, your credit bureau profile could change for the better, in terms of legislation.

  3. Will you be in contact with all the creditors?
  4. Yes. We correspond with your creditors, listed with us, and entertain telephonic queries with your creditors.

  5. What is the time period for this?
  6. Our services are rendered to you on a month to month basis for as long as you require our services and/or until your total debt is settled either by re structured payments or written off in terms of the prescription act or by creditors. We continually administer restructured payments with the aim to have debt obligations settled in the shortest possible time with the consumer's available funds. When you feel that you have rectified your financial position sufficiently you can withdraw and take over your own payments etc.

  7. If possible, can we start end of next month as it is already end of this month.
  8. You may start when it suits you as long as you do not delay it too long resulting in your creditors obtaining a judgment against you.

  9. Basically you will call all my creditors to make arrangements to lower the instalments, and you will pay all my creditors each month.
  10. The Magistrates Court Act provides for undertakings to pay your debt in instalments or otherwise, in the form of offers, when you receive a letter of demand or were served with a summons demanding payment. We follow that procedure and initiate your offers to your creditors in terms of your affordability. We also manage your creditor's payments with the intention to firstly bring judgment arrear instalments up to date and act in terms of our agreement to assist as per clause 2 and 3 above. Payments to your creditors are deferred to your creditor's ex-proceeds your available funds within five working days from date of receipt of such funds as per your instruction and agreement entered into.

    • We do not contact creditors directly by phone, unless we require information relating to the dispatch of documentation or to discuss further procedures.
    • We send them documentation informing them of the consumer's appointment, change of contact particulars and restriction for the court to consider further legal proceedings.
    • We also request statements from the inception of the debt so as to authenticate amounts claimed.
    • Our documentation is sent to the department that deals with the issues stipulated in our documentation.
    • Creditors have different departments with many employees. These departments and employees are not always informed regarding our documentation. That is why we request consumers to provide us with the particulars of those persons or departments that contact them so as to send our documents to these persons as well, with the intent that those persons should take note our appointment.
    • Then there are creditors who ignore our appointment and proceed to contact the consumer so as to get the consumer to give in to their demands and eventually sign court documents or pay them. It's their collection strategy.
    • We will keep on contacting those creditors that contact our clients, provided we have their specific contact details.
  11. By lowering the instalments, will you be extending the period, for examples the loans? If I have a six month's loan, will that be extended to one year for example?
  12. We do not extend the period. The period is extended due to reduced payments. The period can be decreased where instalments are increased by you as and when your affordability allows for you to pay more. In other words, you pay less to give you breathing space until your finances improve.

  13. Can I still use my accounts each month, for example, my clothing accounts and revolving credit line credit cards?
  14. That is for the creditor to decide, but often they do allow it as they know they will be paid even if a lesser amount, they will still be paid. I cannot talk for them though.

  15. Can I still apply for credit if I need to?
  16. Yes, it is possible but not advised. If you are over-indebted, one should not make further debt unless such debt would settle existing debt at an interest rate less than the proposed settled debt. Financial institutions may not further over in debt consumers.

  17. What are the restrictions of a client opting for this option?
  18. No restrictions - you can terminate it at any time as you are not contractually bound. But the sensible thing would be to stick it out for at least a year. Maybe shorter, maybe longer, but everyone's situation is different. Remember the reason why you do it? When that is satisfied in your opinion you can move on.

  19. If I decide I want to cancel this option, will I pay any cancellation/penalties fees?
  20. No penalties, nor cancellation fees.

  21. If I do decide to cancel, will I still be the paying the amounts you arranged with my creditors, or will my accounts all revert back to normal?
  22. You would proceed with the offered instalments. They could, however, take advantage of the fact that you are not assisted by us and could consider Section 130 (3) (i) of the National Credit Act not being applicable and could lodge further legal proceedings.

  23. I am under Debt Review. What must I do if I wish you to assist me?
  24. We can only assist you if there is no court order. In this case, the cancellation process is that the current deduction must be stopped, your debt counsellor must be informed in writing regarding your cancellation. You must inform the NCR in this regard who should initiate removal of the debt review listing from the listed credit bureaus. The debt counsellor will inform your creditors and some creditors will proceed to contact you to proceed with legal recoveries. In this instance, you may refer them to us. I suggest that you request statements from your creditors to assure yourself of payments that were made. If we are appointed, the normal procedure will apply. If you have securitized loans such as mortgage bonds, car HP's or furniture credit you must be careful as you may be placing your assets at risk. Your creditors might decide to attach them as you are no longer under the protection of the original agreement reached while under debt review. Of course, if there are no arrears on these it should not pose a problem.