Debt Review NCRDC183

Transcription

1 Debt Review NCRDC183 APPLICATION BY CONSUMER FOR DEBT REVIEW IN TERMS OF SECTION 86 OF THE NATIONAL CREDIT ACT 34 OF 2005

2 Date No. of Applicants Ref No NCRDC183 Debt Counselor HILTON VAN AS APPLICATION BY CONSUMER FOR DEBT REVIEW IN TERMS OF SECTION 86 OF THE NATIONAL CREDIT ACT 34 OF 2005 Please note that: For the speedy process of you application it is very important that all latest documents is supplied. Expense account is completed truthfully. 1) On receipt of this application the Debt Counselor will advise all credit providers and all registered credit bureaus that you have applied for debt review. 2) 2) You will be listed with all registered credit bureaus that you have applied for debt review. 3) This form must be accompanied by a list of all credit providers as well as a copies of all documents requested. (a) Latest salary advices of both spouses (b) Copy of ID documents (c) List of essential monthly expenses (i.e.: Food, school fees, fuel...) (d) Latest statements of all creditors (i.e.: Bonds, vehicle, credit cards...) 4) Should any documents not be submitted within 10 days of the Application being received by the Debt Counselor, your application will not be accepted. GUIDELINES 1. WHEN CAN A CONSUMER EXIT DEBT REVIEW PROCESS? Section 71(2)(b)(i) of the Act initially made provision for consumers to only exit debt review through issuance of a clearance certificate after they have paid all their re-arranged debts in full. The effect of this provision is that in instances where a home loan formed part of the debt review application, consumers have to remain under debt review for the duration of the home loan term even after settling re-arranged short term debts. This provision will however change upon proclamation of the National Credit Amendment Act (NCAA) under section 71(1) as follows: 3 Guidelines for the Withdrawal from Debt Review (1) A Consumer whose debts have been re-arranged in terms of Part D of this Chapter must be issued with a Clearance Certificate by a Debt Counsellor within seven days after the Consumer has (a) Satisfied all the obligations under every credit agreement that was subject to that debt re-arrangement order or agreement in accordance with that order or arrangement; or (b) Demonstrated: (i) financial ability to satisfy the future obligations in terms of the re-arrangement order or agreement under- (aa) a mortgage agreement which secures a credit agreement for the

3 purchase or improvement of immovable property; or (bb) any long term agreement as may be prescribed; (ii) that there are no arrears on the re-arrangement contemplated in subparagraph (i); and (iii) that all obligations under every credit agreement included in the re-arrangement order or agreement other than those contemplated in subparagraph (i), have been settled in full. 2. CAN A DEBT COUNSELLOR TERMINATE OR WITHDRAW DEBT REVIEW PROCESS? NO. A debt counsellor does not have statutory powers to terminate or withdraw the debt review process. This means that a debt counsellor can no longer issue Form 17.4 and update DHS with status G (Voluntary withdrawal by consumer) or H (Withdrawal by a debt counsellor). There is however varied ways in which a consumer can be withdrawn from debt review which will be set out below. 3. CAN A CONSUMER WITHDRAW FROM DEBT REVIEW PROCESS ONCE A DEBT REVIEW COURT ORDER HAS BEEN OBTAINED? Once a debt review court order has been obtained a consumer cannot terminate or withdraw the debt review process, they can however approach the court to rescind the order or apply for an order which declares that the consumer is no longer over-indebted. Upon receipt of the order, a debt counsellor will notify the credit providers of the withdrawal by means of Form 17.W and update DHS with status G. 4. CAN A CONSUMER WITHDRAW OR TERMINATE DEBT REVIEW PROCESS PRIOR TO OBTAINING DEBT REVIEW COURT ORDER? Consumers can only withdraw or terminate the debt review process prior to declaration of over indebtedness as per section 86(7) of the Act and issuance of Form 17.2 subject to payment of debt counselling fees as per NCR Debt Counselling Fee Guidelines. If a determination is made and no court order is in place, the consumer will remain under debt review. A debt counsellor will notify the credit providers of the withdrawal by means of Form 17.W and update DHS with status G. Guidelines for the Withdrawal from Debt Review 5 5. CAN A DEBT COUNSELLOR SUSPEND HIS/HER SERVICE FROM A CONSUMER UNDER DEBT REVIEW PROCESS? 5.1 Where section 86(7) determination is made and the consumer is not co-operating Where a consumer is not co-operating with the debt counsellor (e.g. not providing relevant information or proof, non payment of debt counselling fees, etc) and a determination in terms of section 86(7) of the Act is made, a debt counsellor can suspend provision of his/her service to the consumer. Prior to suspension of the service, a debt counsellor will notify the consumer of the intended suspension of service, the consequences and allow the consumer 10 business days to remedy the situation. Debt counsellor to remain the debt counsellor on record for the consumer. The following information should be included in the notice of intended suspension to the consumer: I Notice of pending service suspension and the reasons thereof; ii. Consequences of non cooperation (e.g. risk of termination by credit providers, inability to apply for further credit, consumer is still under debt review, no withdrawal request to be processed, etc) ; iii. Option to remedy the situation within 10 working days; iv. If no response is received and the situation has

4 not changed, consumers and credit providers should be notified of the suspension of service by means of Form 17.W. 5.2 Where a consumer has elected to make direct payments to credit providers In terms of the NCAA, a consumer has a right to make direct payments to credit providers and not make use of the services of a Payment Distribution Agent (PDA). Election by consumers to make direct payments to credit providers cannot be construed as non co-operation and should not be used as a reason for suspension of debt counselling services. The following information relating to election to make direct payments should be included in the Form 16 signed by the consumer when they apply for debt review: i. Consumer remains responsible to make all payments as re-arranged, in full and on time. ii. Proof of payments must be sent to the debt counsellor on a monthly basis for record keeping and to enable provision of after care service as a consumer cannot be under debt review without a debt counsellor. Guidelines for the Withdrawal from Debt Review iii. Consequences of making short or late payments(e.g. risk of termination by credit providers) iv. Debt counselling fees are payable to a debt counsellor for services rendered and this includes payment of aftercare fees. v. For a debt counsellor to issue a clearance certificate, all after care fees must be up to date. Where the debt counsellor has suspended provision of service, a consumer must provide proof of settlement letters from credit providers for a debt counsellor to issue a clearance certificate. 6. CAN A CONSUMER BE TRANSFERRED TO ANOTHER DEBT COUNSELLOR? A consumer under debt review may be transferred to another debt counsellor subject to payment of all debt counselling fees where it has been established that the previous debt counsellor followed the correct process. Form 17.7 should be used to facilitate this process. Personal Details (First Applicant) Surname Initials Full Names Date of Birth / / I.D Tel (H) ( ) Cell Address Postal Code Code Personal Details (Spouse) Surname Initials Full Names Date of Birth / / I.D Tel (H) ( ) Cell Address Postal Code Code

5 Marital Status Community of Property Y N Contract Y N Single Y N Traditional Y N Divorced Y N Widowed Y N Date / / Dependants 1. Name Relationship 2. Name Relationship 3. Name Relationship 4. Name Relationship 5. Name Relationship Age Age Age Age Age Employment Details (First Applicant) Employers Name Postal Address Code Code Tel ( ) Fax ( ) Occupation Department Employee No Pay Date Employment Details (Spouse) Employers Name Postal Address Code Code Tel ( ) Fax ( ) Occupation Department Employee No Pay Date

6 Credit Agreements No Creditors Monthly Instalments Capital Outstanding Type of Debt Particulars Attached

7 Income and Expenditure 1 Income Client Spouse Gross 2 Deductions Description Amount Amount P.A.Y.E UIF Site Tax Pension Fund Insurance Insurance Medical Aid Garnishee Loan Other Other Other 3 Net Income Client Spouse

8 Essential Living Expenses 1 Expenditure Client Spouse Bank Charges Clothing Domestic/Cleaning Service Dstv Education Fees Food Funeral Cover Gardening Service Insurance Premium Insurance premiums Medical Aid Mobile Phone Municipal Rates and Taxes Petrol Property Rental Telephone and internet Transport Cost Vehicle Insurance Water and Lights

9 Detailed particulars for over indebtness.

10 DEBT COUNSELLING FEE STRUCTURES The Debt Counsellor may charge the following amounts in respect of Consumers with an individual gross income of more than R per month or a household income of more than R per month:- 1. An Application Fee, recoverable directly from the Consumer upon recieving an application for Debt Review, limited to the amount prescribed in terms of Schedule 2(2) of the NCA i.e. R A rejection fee of R (excl VAT) in respect of Consumers whose applications have been rejected in terms of S 86(7)(a) of the NCA. 3. A restructuring fee of the lesser of the first installment of the debt rearrangement plan or R (excl. VAT), in respect of a Consumer whose application has been accepted in terms of S 86(7)(b) or S 86(7)(c). This fee will be included in the restructuring process. An aftercare fee of 5% pm :(excl. VAT) on the monthly installment of the Debt Rearrangement Plan. up to a maximum of R : (excl. VAT) 4. Should the Consumer withdraw from the process after paying the restructuring fee, a fee equal to 75% of such fee is payable to the Debt Counsellor. 5. In order to obtain a consent order, an attorney must be appointed. Any legal fees payable for this process will be disclosed to the Consumer upfront and the Consumer will authorize these fees in by signing of this document. Court Application R Attorney s Fees R Kindly note that failure to make payments will result in your application being terminated in terms of Section 86 (10) of the National Credit Act and you will not be protected against your credit providers. SIGNED AT (PLACE) ON THIS DAYOF 20 APPLICANT ID DEBT COUNSELLOR/CONSULTANT Hilton Van As (NCRDC183)

11 DECLARATION BY THE CONSUMER I declare as follows: 1. I undertake to comply with all requests from the debt counselor to assist him/her to evaluate my state of indebtness and the prospects for responsible restructuring. 2. I hereby consent to the submission of my information to all registered credit bureaus by the debt counselor. 3. I also consent that the debt counselor may obtain my credit record from any/all registered credit bureaus and any other registers which may contain any of my credit information. 4. I undertake not to enter into any further credit agreements, other than a consolidated agreement, with any credit provider until one of the following events has occurred: a. The debt counselor rejects my application b. The court determines that I am not over-indebted, or c. All my obligations under credit agreements as re-arranged are fulfilled. 5. I confirm that the information contained in this document is, to the best of my knowledge, true and correct. Signed(place) on this(day) of(month)...20 Signature Signature

12 Power of Attorney I, THE UNDERSIGNED, DECLARE AS FOLLOWS: 1. I undertake to comply with all the requests from the Debt Counsellor to assist him/her to evaluate my state of indebtedness and the prospects for responsible debt restructuring; 2. I hereby consent to the submission of my information to all registered credit bureaux by the Debt Counsellor; 3. I also consent that the Debt Counsellor may obtain my credit records from any/all registered credit bureaux and any other registers which may contain any of my credit information; 4. I undertake not to enter into any further credit agreements, other than a consolidated agreement, with any credit provider until one of the following events has occured: a. The Debt Counsellor rejects my application; b. The court determines that I am not over-indebted; or c. All my obligations under credit agreements as re-arranged are fulfilled.; 5. The Debt Counselling process was explained to me and I have read and understood the Debt Counselling Process; 6. Debt Counselling Fees and Legal Fees applicable are set out in the Fee Guidelines, I understand and accept these fees. I shall accept any additional fees 7. I understand that I MUST NOT SIGN ANY DOCUMENTS whatsoever which I receive from any credit provider and shall make no promises, either verbally or in writing, to any credit provider and understand that ANY payment to a credit provider will be done through the NPDA by arrangement with the Debt Counsellor; 8. If I lodge a complaint of reckless lending, I confirm that the information I gave to the credit provider on the application for credit was true and correct; 9. If I have any additional money that I want to pay towards my debt, I will arrange with the Debt Counsellor for the payment to be made through the NPDA, so records and interest can be adjusted by them; 10. I confirm that the information contained in this document is, to the best of my knowledge, true and correct. 11. I indemnify all employees and nominees of Debt -911 against any claim that may be instituted against it or them arising from any act or omission by such person appointed by Debt -911 or it's nominee in the lawful execution of the terms and conditions of this agreement/power of Attorney entered into with myself, and confirm that Debt-911 shall not be liable for any damages suffered by me resulting from any act or omission of whatsoever nature, however arising. 12. I hereby acknowledge that all lawful actions taken by Debt-911 under its powers under this Power of Attorney are tacitly ratified by me, and I will be bound by such agreements as principal debtor. SIGNED AT (PLACE) ON THIS DAY OF 20 APPLICANT ID: SPOUSE/PARTNER ID:

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14 Power of Attorney By this Power of Attorney I the undersigned,, an adult female/male currently residing at hereby appoint Hilton Robert Van As NCRDC183 of Debt-911 which has its principal place of business at 19 A Geringer Street Del Judor Witbank 1035 ( the Debt Counsellor ), to be my true and lawful agent and I expressly grant the Debt Counsellor full power and authority to, on my behalf: 1. cancel any debit orders; and/or 2. stop payments of any debit orders, in order to facilitate the debt review in terms of section 86 of the National Credit Act, 34 of Signed at...on this... day of Witness 1: Witness 1: Signature Customer: Signature... Witness 2: Full Name... Witness 2: Signature

15 Signed at...on this... day of Witness 1: Full Name Hilton Robert Van As NCRDC Witness 1: Signature Debt Counsellor: Signature... Witness 2: Full Name... Witness 2: Signature