A Fin24 reader wants to know how the lockdown will affect his scheduled debt repayments.
I’m currently under debt review. How will the national lockdown affect my monthly repayments as per order?
Mark Bishop, Managing Member at Credit Clear responds:
Unfortunately, if you fail to pay any instalments under debt review, your creditors are entitled to exercise their rights to terminate the payment plan and proceed with legal action against you to enforce the rights in terms of the credit agreements.
What you need to do is urgently contact your debt counsellor and request them to apply to your creditors for an extension on the repayment term (Form 17.3) and communicate with your creditors accordingly.
You will need to provide your debt counsellor with proof of your change of circumstances by supplying them with a letter from your company with regard to any change in salary over the lockdown period and, if required, bank statements.
Should the creditors accept the application for an extension, they may extend the repayment terms by three months. Another option would be to claim on credit-linked insurance, if this is applicable. Naturally the credit-linked insurance must make provision for temporary loss of income as a benefit and, you must have met all other requirements in terms of the policy in order for a claim to be successful.
This option can also be discussed with your debt counsellor.*Credit Clear is a registered alternative dispute resolution agents with the NCR (Reg#NCRADRA6).
Questions may be edited for brevity and clarity.
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