Creditors not acting in good faith

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A Fin24 user is worried about being listed as being in default for non-payment. He writes:

I have been off debt review for less than year.

I contacted all my creditors and made arrangements to continue payments normally, and settled smaller debts.

I have made arrangements with the credit provider to pay and increase instalments to cover the gap.

Can the credit provider list a person as "default for non-payment" if original payments fell behind due to being on debt review - even though one was still paying something?

Renée Marais NCRDC1780, an independent debt counsellor, responds.

Firstly, congratulations for coming out of debt review and for settling your smaller debt first.

It has been proven many times over that the smart way to get out of debt is by paying off smaller credit first.

Secondly, I am sorry the creditors are not acting in good faith and following the intentions of the National Credit Act 34 of 2005.

This act was proclaimed with the aim of getting consumers out of debt and helping them to become economically viable and with good credit records.

Debt review listings on the National Credit Regulator (NCR) DebtHelp system are there for the specific reason not to have consumers be blacklisted. Yet creditors still do that.

They are allowed to list you, as strictly speaking when under debt review you are paying smaller instalments and are in fact behind as per the original agreements.

Because you were proactive in being under debt review when you had problems and this is a voluntary process, the creditors should respect that.

I would suggest you contact your previous debt counsellor and request that they give you a letter stating that you were a reliable and prompt payer.

Get all the proof of payments and statements of all the creditors and send a complaint to the NCR.

On the NCR’s website you will find the complaint form to assist you in clearing your name.

If at the time of debt review the debt counselor obtained a court order for your debt repayment, you need to have the court order set aside.

You could also pay off all your debt first, and then request a clearance certificate from the debt counsellor.

If you have any more questions, you may contact the Debt Counselling Industry and they will put you in contact with a specialist to assist you.

- Fin24

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