How to leave debt review

If you are wondering how to remove yourself from debt review, fist you need to assess whether or not this is the right decision for you.

If you can prove that you are able to start making regular payments, you can request to end your debt review. Previously you could exit debt review only once you had paid all your re-arranged debts in full and had received a clearance certificate.

How to withdraw:

Your debt counsellor will need to submit a Form 17.4 and they will also need to notify your credit providers by way of a debt review cancellation letter. It is best to speak to your debt counsellor about withdrawing from debt review, as they will be able to facilitate a smoother exit.

Or you can do it yourself and go to the court to obtain permission to get out of debt review.

Making direct Payments:

Most consumers who are under debt review or considering debt review are concerned about how to ensure that the payments they make are correctly paid to the creditors. The good news is that a consumer has the right to make direct payments to credit providers and not make use of the services of a Payment Distribution Agent (PDA). However, according to the National Credit Regulator, if a consumer chooses to make direct payments to credit providers, this cannot be construed as non-co-operation and should not be used as a reason for suspension of debt counselling services.

When you apply for debt review, you will need to sign a Form 16 in order to apply for direct payment:

  • You remain responsible to make all payments as re-arranged, in full and on time.
  • You would have to provide proof-of-payment to the debt counsellor on a monthly basis for record keeping and to enable provision of aftercare service, as a consumer cannot be under debt review without a debt counsellor.
  • If you miss a payment or pay late, you will risk termination of the debt review by the credit providers.
  • Debt counselling fees are payable to a debt counsellor for services rendered and this includes payment of aftercare fees.
  • For a debt counsellor to issue a clearance certificate, all aftercare fees must be up to date, and if 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.

Debt Review Cancellation Fees:

Note that if you do cancel your debt review, you will have to pay the original installments and interest rates again, plus penalty fees. At this point, your credit providers will be able to proceed with legal action against you again.

So, if you do start earning more money while you are under debt review, it is just easier to just start repaying more than is required – which will result in you becoming debt free sooner.

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