Sometimes, people are reluctant to apply for debt review, because they have heard or experienced negative things about debt review. The official debt review process, regulated by the National Credit Act 34 of 2005, has been in place since 2007, and since then, the debt review systems and processes have been refined and improved.

Miscommunication between the debt counsellor and the consumer could be a reason for people’s negativity towards the process. Whether the process will be successful or not depends largely on effective communication between the consumer and the debt counsellor. There are a few things to watch out for before choosing a debt counsellor.

Four important questions regarding debt review are discussed In Part 2 (final  part) of this miniseries.

It has happened that people find themselves under debt review without having given consent or applied for it. If people work through a call center or respond to direct marketing, they should make sure to complete a Form 16, which is the application form. If this form is not signed by a client, the person cannot be placed under debt review.

Remember, it is possible to be placed under debt review by knowing a client’s  ID number and a few other personal details.

The answer is yes, but a company name is not sufficient. People should insist on knowing the name and surname of their debt counsellor and ask to speak to the person. It is best to ask that the debt counsellor call the prospective client. If he/she cannot find the time to speak to a new client, they will not respond to clients’ queries when they are already under debt review. During the first conversation, agree on the best ways to contact the debt counsellor and make sure to get valid direct contact details.

It will be a mistake for people to assume that they will not need to speak to, or communicate directly with, their debt counsellor during the period that they are under debt review. It is our experience that many clients who ask for a transfer to us say they have never met or spoken to their debt counsellor, and they do not know his/her name. Some people say the debt counsellor does not respond to their queries.

A client’s personal preferences play a major part when deciding which debt counsellor to approach. Debt counselling, however, is a private and personal matter. Therefore, make sure that the documents you sign include a POPIA compliance statement by the debt counsellor. If a person prefers to be largely anonymous during the process and be one of many in a similar situation, you could consider a larger debt counselling company. Most of them are reliable and will help you through the process very efficiently.

If, however, you prefer a more personal relationship and personal advice and assistance from time to time, you could consider a smaller debt counsellor. The debt counsellor in the small company will know you by name and will give personal attention to your enquiries and affairs.