Legal Consultancy, Debt Counselling & Debt Review in South Africa
A Legal Resource for Debt Review, Credit Law and Consumer Protection
The door to a future without debt.
Professional Legal Consulting. Debt Review Expertise. Practical Solutions.When debt starts to affect your peace of mind, taking the first step can feel difficult. At PLCS, we listen, help you understand your position and explain the options available to you. You will know who is handling your matter and what is needed next.Debt counselling is led by Ancil van Heerden, registered debt counsellor NCRDC164, with office support from Sonnette Kretschmer.
Our Vision
To be a trusted South African legal consultancy recognised for expertise in credit law, debt review, consumer protection and regulatory compliance, empowering individuals and professionals through knowledge, integrity and practical solutions.
Our Mission
To provide independent, professional legal consulting, debt counselling, compliance guidance and practical education, helping consumers understand their rights and obligations while supporting industry professionals in applying the National Credit Act accurately, ethically and effectively.
Important Information
An enquiry is not an application for debt review. Debt counselling is a formal process. Fees and credit restrictions apply. It does not cancel debt or guarantee a particular outcome. We explain the implications before you decide to apply.
Our Services
Personal Debt Counselling
For consumers struggling with credit repayments, Ancil assesses your financial circumstances, explains whether debt review may be appropriate and guides you through the process.Where appropriate, this includes preparing repayment proposals, engaging with credit providers and arranging the required legal referrals.
Aftercare and Account Enquiries
We assist with debt-review progress enquiries, payment-distribution queries, account information and follow-up on existing arrangements.Consumers are encouraged to report payment difficulties or disputed account information promptly so these matters can be investigated.
Debt-Review Status and Clearance Enquiries
We assess the documentation and current status of your debt-review matter before explaining the available options.Clearance, transfers between debt counsellors and correction of inaccurate information are separate processes. We do not promise immediate removal of debt-review indicators.
Debt Counselling Practice Setup
Drawing on Ancil's extensive industry experience, PLCS assists new debt counsellors with establishing their practices.Services may include office setup, administrative procedures, mentoring and practical training, with the scope and fees agreed in advance.
Training and Professional Development
PLCS welcomes enquiries about practical debt-review training, workshops and professional support.Ancil is developing Debt Review: Back to Basics (BTB), a learning resource connecting the National Credit Act with the practical requirements of debt counselling.Training availability, materials and fees are confirmed before an engagement is accepted.
Court Processes, Oppositions and Credit Enforcement
PLCS provides comprehensive, practice-oriented training on debt review court processes and procedures, including the preparation of court applications, supporting documentation, oppositions, credit enforcement proceedings and relevant provisions of the National Credit Act.The training draws on legislation, court rules, relevant case law and practical industry experience to help debt counsellors and other industry professionals understand procedural requirements, identify common errors and prepare legally sound documentation.
Consumer Financial Wellness
PLCS welcomes discussions with employers, credit providers and other organisations about consumer financial education, responsible referrals and financial wellness initiatives.Participation and referrals respect consumer choice and confidentiality.
Fees and Scope of Services
We explain the proposed services, applicable fees and any separate legal or third-party costs before you commit.PLCS does not provide loans or promise debt write-offs. Court representation is arranged through appropriately authorised legal practitioners.
Prescription of Debt and Credit Agreement Disputes
PLCS assists consumers in understanding prescription under the Prescription Act and its application to credit agreements.We assess account histories, payment records, acknowledgements of liability, debt review arrangements and relevant legal proceedings to determine whether a debt may have prescribed or whether prescription may have been interrupted.Where appropriate, we assist consumers with disputed or potentially prescribed accounts, credit provider correspondence and credit bureau information.Prescription is not automatic in every case. Each matter requires an individual assessment of the facts, applicable legislation and relevant case law before any recommendation can be made.
Training and Consumer Wellness
Debt Review: Back to Basics (BTB)
Ancil van Heerden is developing Debt Review: Back to Basics (BTB), a practical learning resource connecting the National Credit Act with the everyday requirements of debt counselling.The programme explores credit agreements, financial assessments, repayment proposals, negotiations, court preparation, aftercare, governance and professional accountability. Training enquiries are welcome. Programme availability, course materials, dates and fees will be confirmed separately.
Mentoring New Debt Counsellors
Establishing a debt counselling practice involves more than understanding the legislation.Ancil has assisted new debt counsellors in establishing their offices and provides practical guidance on administration, file management, consumer communication and professional responsibilities. Mentoring arrangements are tailored to individual requirements, with the scope and fees agreed in advance.Each practitioner remains responsible for their own registration and regulatory obligations.
Professional Standards
PLCS requires its support team to complete the eight-volume BTB programme and relevant assessments, together with practical training in the systems used for their assigned responsibilities.This training does not confer NCR registration or authorise support staff to perform functions reserved for registered debt counsellors.
Consumer Financial Wellness
PLCS welcomes discussions with employers, credit providers and other organisations about consumer financial education and wellness initiatives.Our objective is to help consumers recognise financial difficulties, understand the assistance available and make informed decisions without pressure. Participation is voluntary, and referrals must respect confidentiality and individual choice.Under the proposed credit-provider referral initiative, PLCS does not pay or receive referral commissions.
Received a Section 129 Notice?
If you have received a Section 129 notice under the National Credit Act, read it carefully and seek advice promptly.A referral to PLCS does not replace the statutory notice or automatically suspend legal proceedings. Please tell us about any existing legal action when making an enquiry.
Important Training Information
BTB is a practical professional learning resource. No external accreditation or endorsement is claimed. Participation does not replace any legally required qualification or professional registration.
About PLCS
Experience, Responsibility and Personal Attention
Perceptive Legal & Consulting Resources CC (PLCS) is an independent South African legal consultancy specialising in credit law, debt review, consumer protection, regulatory compliance and professional education.Drawing on extensive legal, operational and industry experience, PLCS provides practical guidance to consumers, debt counsellors, credit providers and other industry stakeholders.Our approach combines legal knowledge, professional integrity and personal attention. We believe that understanding the law, knowing your rights and making informed decisions are essential to achieving sustainable solutions.
Meet the Founder — Ancil van Heerden
B.Proc • LLB • Admitted Advocate of the High Court of South Africa
Registered Debt Counsellor: NCRDC164Ancil has worked in debt counselling since 2007. Her professional background includes banking, legal and compliance work, senior leadership in the debt-review industry, and practical training.She brings this experience to the assessment of consumers' financial circumstances, engagement with credit providers and development of appropriate debt-review solutions.Ancil has also assisted new debt counsellors in establishing their practices, providing mentoring and practical industry training.She is developing Debt Review: Back to Basics (BTB), a professional learning resource connecting the National Credit Act with the practical requirements of debt counselling.At PLCS, Ancil is responsible for professional debt counselling decisions, recommendations and statutory sign-off.
Meet the Office Manager — Sonnette Kretschmer
Sonnette brings more than 14 years of experience in debt-review administration, consumer service, executive complaints and communication with credit providers and legal representatives.She coordinates office administration, documentation, consumer enquiries and follow-up, working closely with Ancil to ensure matters receive appropriate attention.
Our Values
Clear communication, confidentiality, accuracy and accountability are central to our approach.We treat consumers with dignity, engage credit providers professionally and believe that informed consumers are better equipped to take control of their financial futures.
Awards & Industry Recognition
A History of Excellence in Debt Counselling
At Perceptive Legal & Consulting Resources (PLCS), our commitment to professional excellence is supported by a longstanding history of industry recognition.
Our founder, Ancil van Heerden, has been involved in the debt counselling industry since 2007 and has received recognition through the South African Debt Review Awards.
Our Awards and Recognition
• 2014 – First Place: Public Voting Category – Best Debt Counsellor.
• 2015 – Second Place: Public Voting Category – Favourite Boutique Debt Counsellor.
• 2016 – Top 5: Boutique Debt Counselling Practice.
• 2026 – Top 5: Boutique Debt Counselling Practice – Perceptive Legal & Consulting Resources.
Following a period of non-participation in the awards from 2017 to 2025, PLCS returned to the awards in 2026 and received Top 5 recognition.
These acknowledgements reflect a history of professional dedication, practical experience and a continued commitment to responsible debt counselling.
Our commitment remains unchanged: to provide informed, ethical and professional assistance to consumers navigating the debt review process.
Debt counselling starts with understanding your circumstances. The route and outcome depend on your income, expenses, credit agreements and the legal position of each account.Step 1 — Talk to UsTell us what is happening and whether you have received any legal notices. We explain the debt counselling process, applicable fees and potential consequences.An initial enquiry does not place you under debt review.Step 2 — Apply and Provide Your InformationIf you decide to apply, we guide you through the formal application process and required documentation. This usually includes identification, income and expense information, account details and relevant legal documents.Ancil assesses the information and carries out the required notifications and enquiries.Step 3 — Consider a Realistic ProposalWhere appropriate, Ancil develops a repayment proposal based on your verified financial circumstances. She engages with the affected credit providers to explore suitable arrangements.Proposed concessions and reduced instalments are not guaranteed.Step 4 — Follow the Appropriate Legal ProcessThe assessment and applicable legal requirements determine the next steps. Matters requiring a court decision are referred to court. Qualifying agreed arrangements may follow the statutory consent-order process.PLCS explains the appropriate process and the role of any legal practitioner involved.Step 5 — Make Payments and Stay InvolvedFollow the applicable payment instructions and keep records of your payments. Contact PLCS promptly about account enquiries, changes in circumstances or difficulty making payments.A payment distribution agent distributes funds but does not replace the debt counsellor's responsibilities or your obligation to make payments.Step 6 - Check Eligibility for ClearanceWhen the requirements of Section 71 of the National Credit Act are satisfied, the debt counsellor addresses the clearance process. A qualifying mortgage may remain in place where the statutory conditions are met.Step 7 - Enforcement: Important WarningFailure to comply with payment obligations may expose a consumer to credit enforcement, subject to the requirements of the National Credit Act.Depending on the circumstances, enforcement may involve termination of debt review under section 86(10), enforcement following default under a rearrangement agreement or order in terms of section 88(3), or other applicable legal proceedings.Consumers should seek assistance immediately upon receiving a section 129 notice, termination notice or summons. Available remedies depend on the facts and the stage of proceedings.Step 8 - Clearance Certificate: Your AchievementOnce the requirements of section 71 of the National Credit Act have been satisfied, the debt counsellor must issue a Clearance Certificate (Form 19) within the prescribed period.Clearance may be possible even where a qualifying mortgage agreement remains outstanding, provided the statutory requirements are met.PLCS assists with verifying account settlements, outstanding balances and the requirements for clearance from debt review.Who May Issue a Clearance Certificate?A Clearance Certificate (Form 19) under the ordinary debt review process is issued by a registered debt counsellor in accordance with section 71 of the National Credit Act.Neither the National Credit Regulator (NCR) nor an attorney may simply substitute themselves for the debt counsellor and issue Form 19 under the ordinary debt review procedure.An attorney may provide legal assistance, and the NCR exercises its statutory regulatory functions. Where a debt counsellor refuses or fails to issue a certificate despite the requirements being met, the consumer may approach the National Consumer Tribunal in terms of section 71(3).Consumers should be cautious of anyone promising debt review removal without following the applicable statutory process.
Your Responsibilities
• Provide complete and accurate information.• Regularly check your credit reports and report incorrect information or suspected identity theft.• Read documents carefully before signing.• Ask questions whenever something is unclear.• Keep records of your payments.• Report changes in your financial circumstances promptly.• Maintain payments in accordance with your applicable obligations and any debt rearrangement agreement or order.Protect Your Identity and Credit InformationRegularly review your credit reports to ensure that your personal information, credit agreements, account balances and payment histories are accurate.Immediately report unfamiliar accounts, unauthorised credit enquiries, incorrect information or suspected identity theft to the relevant credit bureau, credit provider and your debt counsellor.Do not assume that an enquiry or pending request changes your existing payment obligations or automatically stops legal enforcement.
FAQ
What is debt counselling
Debt counselling is a statutory process under the National Credit Act that assists consumers who are over-indebted or experiencing, or are likely to experience, difficulty meeting their credit obligations. A registered debt counsellor assesses the consumer's financial circumstances and recommends appropriate measures in accordance with the Act, which may include debt rearrangement.Debt counselling does not cancel or write off your debt. You entered into credit agreements and remain responsible for repaying your lawful debts. The purpose of debt counselling is to help you manage those obligations through an affordable, legally recognised repayment arrangement, where appropriate.
Will interest stop, or will every payment be reduced?
There is no automatic interest freeze or guaranteed reduction in repayments. We explain what can realistically be proposed in your circumstances.
Can I keep using credit?
No. Once you have formally applied for debt review, section 88(1) of the National Credit Act restricts you from using existing credit facilities or entering into new credit agreements, except for a qualifying consolidation agreement, until the applicable statutory restrictions cease.Your debt review status is recorded with the credit bureaus. Credit providers must take this status into account and should not grant further credit contrary to the Act.
What are the consequences?
If a credit provider grants new credit while your debt rearrangement remains in force, the new agreement may be declared reckless under section 88(4).However, section 88(5) also provides that the over-indebtedness and reckless-credit protections in that Part of the Act do not apply to a credit agreement entered into contrary to section 88. You may therefore remain liable for the new debt without those protections.Always consult your debt counsellor before applying for or using further credit.
Will my home or vehicle be safe?
Debt counselling may provide important legal protection, but it does not guarantee that your home or vehicle cannot be repossessed.Protection depends on the legal status of each credit agreement, whether enforcement proceedings have commenced, and whether you comply with the applicable repayment arrangements.Tell your debt counsellor immediately if you receive a section 129 notice, summons or any other legal document.
What does debt counselling cost?
Debt counselling fees are subject to the applicable NCR fee guidelines. We explain the fees in writing before you commit, including any restructuring, aftercare, legal or third-party costs that may apply.You are entitled to understand what you are paying for and when those fees become payable.
Can I leave debt review whenever I want?
No. Once you have formally applied for debt review, you cannot simply cancel the process at any time.The lawful options depend on the assessment outcome, the stage of the proceedings and whether a debt rearrangement order or agreement exists.A transfer to another registered debt counsellor does not cancel your debt review status or any existing court order.IMPORTANT: YOU CAN PAY MORE AND BECOME DEBT-FREE SOONER!If your financial circumstances improve, you may increase your monthly repayments or make additional payments towards your outstanding debts.Paying more can reduce your outstanding balances, save interest and shorten your repayment period.Always inform your debt counsellor so that additional payments are correctly allocated and your repayment progress can be monitored.You do not have to wait until the end of your original repayment term to settle your debts and qualify for clearance, provided the requirements of section 71 of the National Credit Act are satisfied.
What if I cannot afford my next payment?
Contact your debt counsellor immediately, preferably before your payment becomes due.Explain the change in your financial circumstances and provide supporting documents where necessary. Your debt counsellor can assess whether negotiations or appropriate legal remedies are available.Do not unilaterally reduce or stop payments. A proposed change does not automatically amend an existing repayment arrangement or court order, and default may expose you to enforcement.
Does contacting PLCS automatically place me under debt review?
No. Contacting PLCS, submitting an enquiry or requesting information does not automatically place you under debt review.Debt review is a formal statutory process under section 86 of the National Credit Act. A consumer must make an application to a registered debt counsellor, who must assess the consumer's financial circumstances and determine whether the consumer is over-indebted.You may contact PLCS for information, guidance or an initial consultation without automatically entering the debt review process.An enquiry is not a debt review application.
How long does debt counselling take?
There is no fixed repayment period applicable to every consumer.The duration depends on your outstanding debts, repayment capacity, applicable repayment arrangements and compliance with the process.You can shorten your repayment period! If your financial circumstances improve, you may increase your monthly payments or make additional payments towards your outstanding debts. This can reduce interest costs and help you settle your debts sooner.We assess your individual circumstances rather than promise a fixed completion date. Your repayment period may be shortened through increased payments, subject to the applicable arrangements and the requirements for clearance under section 71 of the National Credit Act.
Can a credit provider terminate my debt review?
In certain circumstances, a credit provider may deliver a termination notice under section 86(10) of the National Credit Act, subject to the statutory requirements.Termination does not automatically cancel an existing debt rearrangement court order. The legal position depends on the stage of debt review, the applicable agreements and any court proceedings.Contact your debt counsellor immediately if you receive a termination notice.
What happens if a credit provider rejects my repayment proposal?
A credit provider's rejection does not necessarily end the debt review process.Depending on the circumstances, further negotiations may take place, or the matter may proceed to the Magistrates' Court for consideration under the National Credit Act.
Can a credit provider terminate my debt review and remove me from debt counselling?
Not automatically.Section 86(10) of the National Credit Act permits a credit provider, in certain circumstances, to terminate the debt review process in respect of a particular credit agreement.A termination notice does not automatically terminate the consumer's entire debt review or the debt review of agreements held by other credit providers.Importantly, section 86(10)(b) restricts termination where the debt review application has already been filed in court or the National Consumer Tribunal.The legal effect of any termination must be assessed against the status of the debt review, the applicable court proceedings and the requirements of the Act.A credit provider cannot simply treat the termination of one agreement as permission to terminate every other credit provider's agreement.
Can a credit provider enforce my debt after terminating debt review, and what protection does section 86(11) provide?
A valid termination under section 86(10) may permit a credit provider to pursue enforcement of the affected credit agreement, subject to the applicable requirements of the National Credit Act.However, termination does not itself constitute a court judgment or automatically authorise repossession or execution.Section 86(11) allows the court hearing enforcement proceedings to order that debt review resume, on conditions the court considers just.This protection is not automatic. The consumer must place the relevant circumstances before the court.Consumers who receive a termination notice, letter of demand or summons should seek legal advice promptly.
What happens if I apply for debt review but never make any payments?
Failing to make payments does not automatically cancel a debt review application or remove the consumer's debt review status.Once a formal application has been accepted, the debt counsellor has statutory duties to assess the consumer's financial circumstances and follow the prescribed process.If the consumer fails to cooperate or make payments, credit providers may take lawful steps to enforce their rights, depending on the circumstances.A debt counsellor cannot simply remove a consumer from debt review because no payments were received or because the file has been placed in an internal withdrawal queue.The correct procedure depends on the stage reached in the debt review process, including whether an over-indebtedness determination has been made, whether a proposal has been filed in court and whether a rearrangement order exists.Consumers should request written confirmation of their debt review status and obtain advice before assuming that their application has ended.
Can I dispute an incorrect outstanding balance or a debt that may have prescribed?
Yes. Consumers may dispute incorrect balances, payments that have not been allocated, or debts that may be legally unenforceable due to prescription.Prescription depends on the applicable law and the circumstances, including payments, acknowledgements of liability and legal proceedings. A debt does not automatically prescribe merely because it is old.
Can I request a copy of my debt review documents?
Yes. You should request copies of your debt review application, repayment proposal, applicable court order or consent agreement, payment records and relevant correspondence.Keeping these documents helps you understand your obligations, monitor your progress and resolve disputes.
What happens after I receive my Clearance Certificate?
Once a valid Clearance Certificate (Form 19) has been issued, the prescribed notifications and credit bureau updates must be completed.Consumers should obtain updated credit reports and verify that their debt review information has been correctly updated.A Clearance Certificate does not automatically erase accurate historical payment information or other lawful credit bureau records.
Privacy and Personal Information
At PLCS, we respect your privacy and are committed to handling personal information responsibly and in accordance with applicable South African privacy legislation, including the Protection of Personal Information Act (POPIA).We collect and use personal information for legitimate purposes connected with responding to enquiries, providing debt counselling and delivering our professional services.Please do not include identity numbers, bank details, passwords or sensitive documents in an initial website enquiry. We will explain how to submit supporting documents when required.For questions about your personal information or our privacy practices, please contact [email protected].
Perceptive Legal & Consulting Resources CC, trading as PLCS.
Resources
Working With Others
Effective debt counselling requires accurate information and constructive communication.PLCS works with credit providers, payment distribution agents and legal practitioners within their respective professional roles. We believe that cooperation, accountability and clear communication help consumers understand and manage their debt-review arrangements.The National Credit Regulator, National Consumer Tribunal, courts and Debt Counsellors Association of South Africa (DCASA) perform important regulatory, legal and industry functions. These organisations are not presented as commercial partners or endorsers of PLCS.
Newsletters and Media
We aim to share practical information, professional insights and clear explanations about responsible debt counselling. Topics include preparing for debt counselling, understanding payment records, consumer responsibilities and developments affecting the debt-review industry.Articles and updates will be made available as they are prepared and approved.
Resource Library
Understanding your rights and responsibilities is an important part of making informed financial decisions.Our resource library is intended to provide helpful information about debt counselling, the National Credit Act and preparing for your first consultation. Resources may include introductory guides, consumer information and practical document checklists. Only current, approved materials will be made available for download.General information cannot determine the outcome of an individual debt-review matter.
Professional Learning Resources
Ancil van Heerden is developing Debt Review: Back to Basics (BTB), a practical learning resource for debt counselling professionals.For information about BTB materials, professional training or mentoring, please contact PLCS. Training materials are subject to applicable terms of use and are not provided as unrestricted public downloads.
Contact Us
For enquiries about professional collaboration, consumer resources, training or debt counselling, please contact:[email protected]
Consumer & Legal Articles
01 | LEGAL DIRECTIVES & PRACTICE NOTES
01.1 | Termination of Debt Review – Section 86(10)
Debt Review Termination: What Consumers and Credit Providers Need to Know
Termination of Debt Review – Section 86(10)
What does termination of debt review actually mean?
A credit provider may, in defined circumstances, terminate the review in respect of its own credit agreement under section 86(10) of the National Credit Act 34 of 2005 (NCA). This does not, by itself, cancel every other credit agreement's debt review or amount to a court finding that the consumer is no longer over-indebted.
The answer depends on the stage of the process: whether a debt-review application is still being assessed, whether an application has been filed with a court or Tribunal, whether proceedings were withdrawn, and whether a rearrangement order exists.
When is a section 86(10) notice possible?
Section 86(10)(a) requires, among other things, default under the particular credit agreement and at least 60 business days after the consumer applied for debt review. The notice must be delivered to the consumer, debt counsellor and National Credit Regulator. Section 86(10)(b) restricts termination once the relevant application has been filed in court or the Tribunal.
A valid termination notice is not itself a judgment or an automatic entitlement to bypass every enforcement requirement. The procedural history and applicable court orders must be checked.
Can the court restore debt review?
Under section 86(11), when a credit provider proceeds to enforce after a section 86(10) notice, the court hearing enforcement may order that debt review resume on conditions it considers just. Resumption is not automatic: payment records, communications, feasibility and the consumer's circumstances matter.
Can a magistrate reduce the interest rate?
A debt rearrangement order may extend the repayment period and reduce the instalment within the statutory powers in sections 86(7)(c)(ii) and 87(1)(b)(ii). These provisions do not give a magistrate a general power to impose a lower contractual interest rate without the affected credit provider's agreement. An agreed concession should be recorded and proved before the court.
What happens to the debt review indicator?
Section 88(1) concerns restrictions on taking further credit; section 88(3) deals separately with enforcement. Termination in respect of one agreement is not automatically the court outcome described in section 88(1)(b). Clearance under section 71 must also be distinguished from termination.
Why accurate balances matter
A Certificate of Balance (COB) should give the debt counsellor the contractual rate, dated balance and relevant account details. A later balance movement caused by payments, interest or charges does not necessarily mean that the original COB was wrong. Genuine material errors must, however, be corrected. Regulation 24(4) concerns a five-business-day period following a verification request; it should not be confused with an unconditional five-day COB deadline from Form 17.1.
Practical guidance
Consumers should keep copies of Form 17.1, Form 17.2, payment records, proposals, court papers and notices. Debt counsellors and credit providers should identify the particular agreement, the date and basis of any alleged default, the status of proceedings, and the effect of any existing order before acting.
This article provides general legal information, not advice on an individual case. The applicable statutory text, court record and subsequent developments must be checked before action is taken.
PLCS | Educational Legal Guidance | 5 November 2026
01.2 | Reinstatement of Debt Review – Section 86(11)
Resumption of Debt Review: What Consumers and Credit Providers Need to Know
Section 86(11): Resumption of Debt Review After Termination
Can debt review be resumed after a credit provider has terminated it?
Yes, but not automatically. Section 86(11) of the National Credit Act 34 of 2005 allows the court hearing credit enforcement proceedings to order that debt review resume, subject to any conditions the court considers just.
A termination notice does not, by itself, mean that the consumer has lost every opportunity to seek protection through the debt review process.
What does section 86(11) provide?
Where a credit provider has given notice to terminate debt review under section 86(10) and then proceeds to enforce the credit agreement, the court hearing the enforcement proceedings may order that the debt review resume on conditions it considers just.
Important: The provision gives the court a discretion. It does not provide automatic reinstatement merely because the consumer or debt counsellor requests it.
When may section 86(11) be considered?
The statutory requirements include:
- A debt review application involving the credit agreement.
- A notice of termination given under section 86(10).
- The credit provider proceeding to enforce that agreement.
- A request for the court hearing the enforcement proceedings to exercise its discretion under section 86(11).
A termination notice alone does not automatically trigger a section 86(11) order. The remedy is linked to enforcement proceedings.
What will the court consider?
The court may consider the circumstances of the termination, the conduct of the parties, the consumer's financial position, the history of payments and whether a realistic debt rearrangement is achievable.
Credit providers and consumers are expected to participate in the debt review process in good faith. Unreasonable non-cooperation by a credit provider may support resumption. Conversely, a proposal that does not realistically provide for repayment may weigh against it.
The court must balance the rights and obligations of both the consumer and the credit provider.
What should the consumer and debt counsellor do?
- Examine the termination notice: Check the statutory requirements and the status of the debt review application.
- Establish the enforcement position: Determine whether legal proceedings have commenced and identify the court and relevant deadlines.
- Prepare the financial evidence: Obtain an updated affordability assessment, payment history and a realistic repayment proposal.
- Place the relevant facts before the court: Seek appropriate relief under section 86(11) in the enforcement proceedings, using the applicable court procedure.
- Comply with the court's directions: If resumption is ordered, follow every condition imposed by the court.
Warning: A request for resumption does not itself suspend enforcement or excuse compliance with court deadlines. Urgent legal assistance may be necessary.
What does the Collett judgment establish?
In Collett v FirstRand Bank Ltd and Another [2011] ZASCA 78, the Supreme Court of Appeal recognised the balance between a credit provider's termination rights and the court's power to order resumption of debt review.
The judgment emphasised good-faith participation and the need for a responsible, workable debt rearrangement.
The original wording of section 86(11) referred to the Magistrates' Court. The 2014 amendment subsequently introduced the broader term court, allowing the court hearing the enforcement proceedings to consider resumption.
Remember: Section 86(10) concerns termination of debt review. Section 86(11) concerns the court's power to order resumption when enforcement proceedings follow that termination.
PLCS Legal Guidance: Every case depends on its own facts, the procedural position and the evidence before the court. Professional advice should be obtained before taking action.
Legal references: National Credit Act 34 of 2005, sections 86(5), 86(10) and 86(11); National Credit Amendment Act 19 of 2014; Collett v FirstRand Bank Ltd and Another [2011] ZASCA 78.
01.3 | Enforcement Restrictions – Section 88(1)(b)
01.4 | Certificates of Balance – Regulation 24(4)
01.5 | Statutory In Duplum – Section 103(5)
Can Your Debt Keep Growing Forever?
Understanding Section 103(5) of the National Credit Act
Did you know that South African law limits certain interest, fees and charges that may accumulate while you are in default under a credit agreement?
Section 103(5) of the National Credit Act provides that the combined charges specified in section 101(1)(b)–(g), accruing during default, may not exceed the unpaid principal debt at the time of default.
Why is the Scott judgment important?
In Scott v National Credit Regulator and Others, the High Court held that entering debt review or obtaining a debt rearrangement order does not, by itself, cure the original default for purposes of section 103(5).
The judgment is subject to an appeal to the Supreme Court of Appeal.
Appeal update: The appeal is pending before the Supreme Court of Appeal. A possible hearing date of 26 November 2026 remains unconfirmed. PLCS will update this information once an official notice of set-down or court roll confirms the hearing date.
What should consumers do?
If your debt continues to increase despite regular payments, request a detailed account statement and reconciliation. Each agreement must be assessed individually.
Know your rights. Understand your debt.
PLCS – The door to your future without debt.
Disclaimer: General consumer information, not individual legal advice.
01.6 | Service of Statutory Notices
01.7 | Why your credit agreement maters in debt review
01.07 – Why Your Credit Agreement Matters in Debt Review
Does a debt counsellor have to accept the amount claimed by a credit provider?
No. A credit provider's stated balance should not automatically be treated as proof that every amount charged is correct or lawful.
When a consumer applies for debt review, the debt counsellor must assess the consumer's financial position and credit obligations.
This involves more than calculating how much the consumer can afford to pay each month.
What should be checked?
Depending on the circumstances, a debt counsellor may need to examine:
- The credit agreement: What did the consumer agree to, and when?
- The type of credit: Does the National Credit Act apply?
- Interest and fees: Are the amounts charged permitted by the agreement and the law?
- Credit affordability: Was the required assessment conducted before credit was granted?
- Account balances: Do payments, interest and charges reconcile with the amount claimed?
- Legal proceedings: Has the credit provider already taken enforcement action?
A real case – Why verification matters
In an actual matter, questions arose concerning a credit agreement concluded telephonically.
The investigation involved the consumer's contractual capacity, the evidence supporting the agreement and compliance with the National Credit Act.
The matter was successfully pursued through court proceedings.
It demonstrated an important principle:
A credit provider's claim should be examined against the underlying agreement and the applicable law.
Every case depends on its own facts. A telephonic or electronic agreement is not automatically invalid, and not every contractual irregularity renders an agreement unenforceable.
What if the balance or agreement is disputed?
Consumers should ask their debt counsellor to investigate discrepancies and obtain the relevant supporting documents.
Where necessary, transaction statements should be reconciled, and potential unlawful charges or other contraventions should be referred for appropriate determination.
A debt counsellor cannot simply cancel an agreement or disregard a debt because the consumer disputes it.
The PLCS approach
At Perceptive Legal & Consulting Resources, we believe effective debt counselling begins with understanding the consumer's legal and financial position.
Debt review is not merely about rearranging payments. It is also about ensuring that credit obligations are properly assessed and that consumers understand their rights.
For professional assistance or information about debt review and credit agreements, contact Perceptive Legal & Consulting Resources.
Educational information only. The legal position depends on the facts and documentation of each matter.
01.8 | A debt counsellor cannot be traced
Exiting Debt Review When Your Debt Counsellor Cannot Be Traced
What if I want to exit debt review, but my debt counsellor cannot be traced?
Some consumers discover that their debt counsellor has closed their practice, stopped responding to correspondence, or can no longer be contacted. Others have settled their debts but remain listed as being under debt review.
An absent debt counsellor does not automatically terminate debt review, and it does not mean that the consumer must start the process again.
The first step is to establish the consumer's legal and administrative position.
What should the consumer do?
- Obtain an updated credit report and establish the debt review status recorded on the National Credit Regulator's Debt Help System (DHS).
- Establish whether a debt review court order or National Consumer Tribunal consent order was granted. This can be investigated by contacting the debt counselling department of a credit provider directly and requesting a copy of any order held on record. If the credit provider cannot provide the order, further enquiries may be necessary.
- Obtain settlement letters, payment histories and outstanding balances from the credit providers.
- Verify the registration status of the original debt counsellor with the NCR.
- If the original debt counsellor cannot be traced, request the NCR's assistance with the appropriate transfer or administrative process.
- Approach another NCR-registered debt counsellor to assess whether a transfer, clearance certificate or other lawful procedure is appropriate.
Can another debt counsellor take over?
Yes. An existing debt review matter may be transferred to another NCR-registered debt counsellor in accordance with the applicable NCR transfer procedures.
The receiving debt counsellor should establish the status of the original application, proposals, payment arrangements and any court or Tribunal proceedings.
A transfer is the continuation of an existing debt review matter, not a new debt review application.
What if all my debts have been settled?
Where the requirements of section 71 of the National Credit Act have been satisfied, a clearance certificate may be issued through the applicable process.
Depending on the circumstances, a consumer may qualify for clearance even where a qualifying mortgage agreement remains outstanding, provided the statutory requirements are met.
The debt counsellor must verify the relevant settlement information and determine whether the consumer qualifies for clearance.
What if I have a court order but want to leave debt review?
A debt rearrangement court order does not disappear because the original debt counsellor is unavailable or because the consumer appoints another debt counsellor.
The legal effect of the order and the available remedies must be assessed according to the facts and applicable law.
A debt counsellor cannot simply cancel an existing court order or remove the debt review status on request.
What if no court order was granted?
The absence of a court order does not automatically mean that the debt review process has ended.
The consumer's position must be assessed with reference to the original application, the debt counsellor's assessment, statutory notices, the status of any proceedings and the applicable provisions of the NCA.
Any withdrawal, correction or other administrative step must have a proper legal basis.
Beware of promises to remove debt review immediately
Consumers should be cautious of businesses or individuals promising guaranteed debt review removal, immediate credit bureau clearance or cancellation of a court order without following the lawful process.
No person can guarantee lawful removal of a debt review listing merely because the original debt counsellor cannot be traced.
Always verify that a debt counsellor is registered with the NCR and request a written explanation of the proposed procedure and applicable fees.
How PLCS Can Assist
Perceptive Legal & Consulting Resources can assist consumers in establishing their debt review status, investigating outstanding credit obligations, obtaining relevant documentation and identifying the appropriate lawful procedure.
Where appropriate, assistance may include transferring an existing debt review matter, assessing eligibility for clearance or addressing inaccurate credit reporting.
The correct solution depends on the consumer's actual legal position, not merely the status displayed on a credit report.
Educational information only. Each matter must be assessed on its facts and applicable legal requirements.
02 | DEBT REVIEW GUIDELINES
02.1 | Understanding Debt Review
02.2 | The Debt Review Application Process
02.3 | Consumer Rights and Responsibilities
02.4 | Debt Review Payments and Distribution
02.5 | Withdrawal, Transfers and Termination
02.6 | Clearance Certificates and Exiting Debt Review
02.7 | Frequently Asked Questions
03 | COURT PROCESSES & CASE LAW
03.1 | Debt Review Court Applications
03.2 | Consent Orders and Debt Rearrangement Orders
03.3 | Magistrates’ Court Procedures – Rules 55 and 38
03.4 | Credit Enforcement and Legal Proceedings
03.5 | Rescission and Variation of Court Orders
03.6 | Declaratory Orders and Jurisdictional Issues
03.7 | Important Judgments and Case Law
03.8 | Practical Court Guidelines for Debt Counsellors
04 | CONSUMER RIGHTS & PROTECTION
04.1 | Consumer Rights under the National Credit Act
04.2 | Understanding Your Credit Report and Credit Score
04.3 | Incorrect Credit Bureau Listings and Disputes
04.4 | Prescription of Debt
04.5 | Reckless Credit and Affordability Assessments
04.6 | Debt Settlements and Paid-Up Letters
04.7 | Identity Theft and Fraudulent Credit Agreements
04.8 | Consumer Rights during Debt Review
04.9 | Sequestration, Rehabilitation and Credit Records
04.10 | Complaints, Dispute Resolution and Consumer Remedies
04.11 | Debt Review Scams – Unlawful Fees, Transfers and False Clearance Promises
Debt Review Scams – Unlawful Fees, Transfers and False Clearance Promises
Are You Being Promised Immediate Removal From Debt Review?
Consumers experiencing financial difficulties are particularly vulnerable to businesses and individuals promising to remove their debt review status, clear their credit records or arrange new loans.
Some advertise themselves as debt review removal specialists or credit clearance experts.
No company, debt counsellor or attorney can guarantee removal of a lawful debt review listing simply because you pay a fee.
Debt review is governed by the National Credit Act 34 of 2005 (NCA). Withdrawal, termination and clearance must comply with applicable legal requirements.
Changing Debt Counsellors Does Not Mean Starting Again
Consumers may transfer an existing matter to another NCR-registered debt counsellor.
A transfer does not automatically cancel a court order, terminate debt review or require a new application.
The receiving debt counsellor must establish the existing matter's status and follow the applicable NCR transfer procedures.
A second restructuring fee cannot automatically be charged merely because the matter has transferred.
Beware of Duplicate Debt Counselling and Legal Fees
Under the NCR's 2018 Debt Counselling Fee Guidelines, the restructuring fee relates to the original restructuring process.
Where services have already been completed and paid for, the receiving debt counsellor may not simply charge for those same services again.
The same principle applies to legal work already completed and paid for.
Genuinely new legal work may sometimes be necessary, but it must have a lawful basis, be explained and be authorised by the consumer.
Describing duplicated charges as legal administration, file activation, transfer processing or court fees does not make them lawful.
Always request an itemised written breakdown before agreeing to additional fees.
Beware of Loans Offered to Pay Debt Counselling Fees
A serious warning sign arises when a debt counsellor, referral business or associated company offers to arrange a loan to pay debt counselling, legal or credit clearance fees.
Consumers already experiencing financial distress should be especially cautious about creating additional debt.
A new loan must not be presented as a necessary condition for transferring an existing debt review matter or obtaining lawful clearance.
Any proposed credit agreement must independently comply with the NCA, including applicable affordability and reckless lending provisions.
Never allow yourself to be pressured into borrowing money to pay someone promising credit clearance.
A Court Order Cannot Simply Be Cancelled
A Magistrates' Court debt rearrangement order or National Consumer Tribunal consent order remains legally relevant until the applicable requirements for variation, rescission, satisfaction or other lawful relief have been met.
A debt counsellor cannot simply cancel an order or instruct a credit bureau to disregard it.
Be suspicious of promises to remove a court order without examining the order and your legal position.
Form 19 Clearance Certificates
A Form 19 clearance certificate may be issued only when the requirements of section 71 of the NCA have been satisfied.
In qualifying circumstances, clearance may be possible even where a mortgage agreement remains outstanding.
However, a clearance certificate cannot be issued merely because a consumer pays a fee or wishes to obtain further credit.
A Form 19 is evidence of statutory clearance, not a product that can be purchased.
Credit Bureau Listings and False Promises
Credit bureaus must maintain accurate information and correct or remove information where required by law.
An accurate debt review status cannot lawfully be removed simply because a consumer pays a private company.
Consumers may dispute incorrect information through the applicable credit bureau procedures.
Correcting inaccurate information is different from removing a lawful listing without proper grounds.
Warning Signs Consumers Should Recognise
Be cautious where a person or business:
- Guarantees immediate debt review removal.
- Demands large upfront clearance payments.
- Promises a Form 19 without checking settlements.
- Claims a court order can be cancelled without lawful procedures.
- Charges a second restructuring fee merely because of a transfer.
- Demands legal fees without explaining the work.
- Offers a loan to pay debt counselling or clearance fees.
- Refuses written quotations, mandates or receipts.
- Cannot explain your DHS or credit bureau status.
- Promises immediate access to new credit after payment.
If an offer sounds too easy, ask questions before paying anything.
What Should You Do Before Transferring or Paying for Clearance?
Verify registration. Confirm that the receiving debt counsellor is registered with the NCR.
Establish your current status. Obtain an updated credit report to identify the debt counsellor reflected on your credit profile. Ask the NCR to verify your DHS status, the identity of the debt counsellor linked to your application and whether any court or Tribunal order is recorded.
If DHS reflects Status A, establish whether the application remains at the assessment stage or whether later developments have not been recorded.
If the debt counsellor's identity differs from the person you appointed, request an investigation and proof of any authorised transfer.
Discrepancies between DHS and credit bureau records should be formally investigated. Verify any court or Tribunal order independently where necessary.
Request written information. Ask for an explanation of the proposed services, fees and expected legal outcome.
Check previous payments. Establish which fees have already been collected and what work was performed.
Do not sign without understanding. Read the mandate and any proposed credit agreement.
Keep records. Retain agreements, quotations, payment confirmations, correspondence and receipts.
What If You Have Already Paid?
If you believe you were misled or charged for services not performed, request a written explanation and itemised statement.
You may lodge a complaint with the NCR concerning suspected NCA contraventions or debt counsellor misconduct.
Complaints concerning attorneys may be referred to the Legal Practice Council where appropriate.
Inaccurate credit bureau information may be challenged through the applicable dispute procedures.
Do not pay additional money merely because someone promises to correct a problem they may have created.
The PLCS Approach
Perceptive Legal & Consulting Resources believes consumers must understand their rights before agreeing to transfers, legal services or clearance procedures.
We assess the existing debt review position, documentation, payment history and legal status before recommending an appropriate course of action.
Debt review is intended to protect financially distressed consumers, not create opportunities for repeated fees, unnecessary loans or misleading clearance promises.
For assistance with transfers, disputed charges, credit reporting or clearance enquiries, contact Perceptive Legal & Consulting Resources.
Perceptive Legal & Consulting Resources – NCRDC164
Educational information only. The appropriate remedy depends on the facts and applicable law.
05 | DEBT COUNSELLOR RESOURCES
05.1 | Registration, Duties and Responsibilities of Debt Counsellors
05.2 | Debt Counsellors' Fees
05.2.1 | NCR Debt Counselling Fee Guidelines – 2018
View NCR Debt Counselling Fee Guidelines – 2018
Statutory Fees and NCR Guideline Fees
The National Credit Act 34 of 2005 (NCA) regulates debt counselling and provides for the prescribed application fee.
The R50 application fee is the statutory fee. The remaining fees are set out in NCR Circular 001/2018 and must not be described as statutory fees.
NCR Fee Structure – 2018
Amounts exclude VAT where applicable.
| Fee | Amount |
|---|
| Application | R50 |
| Administration | R300 |
| Restructuring – Individual | Lesser of distributable amount or R8,000 |
| Restructuring – Married in community of property | Lesser of distributable amount or R9,000 |
| Reckless lending assessment | R1,500 |
| Monthly after-care | 5% of distributable amount, capped at R450 |
| NCT submission | R500, excluding Tribunal filing fee |
| Attorney fees | Estimated and agreed upfront; no fixed guideline amount |
When Are Fees Payable?
Application and administration: Upfront, for the applicable initial services.
Restructuring: Month 1, following drafting and submission of repayment proposals, subject to guideline requirements.
Reckless lending assessment: Month 2, following completion of the written assessment outcome.
After-care: Monthly after Month 2, where services are rendered.
NCT submission: Month 2, following completion of the applicable restructuring process.
Attorney Fees
Attorney fees are estimated and disclosed on a pro forma basis, as agreed between the debt counsellor, acting on behalf of and with the informed consent of the consumer, and the appointed attorney.
The estimated fee must be disclosed in writing and relate to the legal services required. The applicable guideline conditions and professional obligations remain relevant.
Legal fees must not be confused with restructuring fees or charged again for the same completed and paid services.
Fee Transparency
Debt counsellors must explain the services, applicable fees and financial implications of debt review.
Fees must not undermine the affordability and sustainability of the proposed debt rearrangement.
Source: NCR Circular 001/2018, Debt Counselling Fee Structure Guidelines.
Read the NCR Fee Guidelines
Read together with the NCA, applicable regulations and registration conditions.
05.2.2 | Debt Review Transfers – Permissible Fees, Legal Costs and Consumer Protection
View Transfer Fee and Legal Cost Guidance
Transfers Do Not Restart Debt Review
A consumer may transfer an existing debt review matter to another NCR-registered debt counsellor. A transfer does not restart the statutory process, cancel a court order or justify charging the original fees again.
Restructuring Fees – Outgoing Debt Counsellor
Under the NCR's 2018 guidelines, the restructuring fee is the lesser of the first month's distributable amount or R8,000 for an individual, or R9,000 for consumers married in community of property.
The fee becomes payable following drafting and submission of repayment proposals, subject to the guideline requirements.
The outgoing debt counsellor must substantiate the assessment, Form 17.2(b) process, proposals and associated services performed.
Receiving the fee does not prove that the work was completed.
Unearned amounts must be identified and properly accounted for through an appropriate refund, transfer or other lawful arrangement. The consumer must not automatically pay twice.
Legal Fees – Incomplete Court Proceedings
Attorney fees must be agreed and disclosed with the consumer's informed consent. An advance payment or pro forma invoice does not necessarily mean the full fee has been earned.
No legal work performed: Any amount retained must be properly justified and accounted for.
Notice of Motion drafted or issued: The attorney may have earned fees for work actually performed, subject to the agreement and professional obligations.
Application pending: The receiving debt counsellor must establish the proceedings' status, attorney's mandate, work completed and amounts paid.
Order granted: The same completed and paid restructuring or legal work cannot simply be charged again.
Substitution of Attorneys and Defective Applications
A transfer does not automatically require substitution of attorneys. Where replacement is necessary, the appropriate court procedure must be followed.
Defective, incomplete or missing applications may require reconstruction, correction or fresh proceedings where legally necessary.
Consumers should not automatically bear additional costs caused by defective work or missing records attributable to previous service providers.
Handover of Documents
The outgoing debt counsellor must cooperate and provide required records in accordance with applicable NCR transfer guidelines.
Where documents are held by the attorney or court, the outgoing debt counsellor should identify the attorney, provide available copies and facilitate access to the outstanding records.
After-Care Fees
Properly earned after-care fees for services already rendered are not refundable merely because of a transfer.
The outgoing counsellor may claim substantiated outstanding fees for services performed before transfer. The receiving counsellor may recover applicable after-care fees for services rendered after transfer.
Warning: Fees collected for periods without corresponding services must not automatically be treated as earned.
Deferred Legal Fees and Legal Loans
Arrangements described as legal loans, deferred legal fees or legal repayment plans require careful scrutiny, especially where the total substantially exceeds the estimated legal costs.
A deferred payment arrangement is not automatically a credit agreement under the NCA. Its legal character depends on its actual terms.
Deferring payment does not justify excessive, undisclosed or unearned fees.
Attorneys Listed as Credit Providers
An attorney's professional fee claim is not automatically an eligible credit agreement under section 86 of the NCA.
Listing an attorney in a repayment schedule does not, by itself, convert legal fees into an eligible credit obligation.
The legal basis of any such inclusion must be established.
Attorneys' Trust Accounts
Legitimate legal payments may be received into properly administered attorneys' trust accounts.
However, a trust account does not validate an excessive or unlawful fee.
Payments must be authorised, properly accounted for and supported by genuine services. Payments to correspondent attorneys require appropriate records.
Affordability and Credit Provider Payments
Excessive legal-fee deductions may reduce amounts available to credit providers, prolong repayment and undermine the purpose of debt review.
Before proposing restructuring, the debt counsellor should assess whether the consumer's available funds can sustain a viable repayment arrangement after legitimate fees and legal expenses.
The right to apply for debt review is distinct from the financial and legal feasibility of a sustainable rearrangement.
Artificial fee arrangements must not be used to manufacture affordability.
Fees Disguised Under Other Descriptions
Charges described as legal administration, court registration, file activation, transfer processing, new restructuring or credit clearance fees must be examined according to the actual services and lawful authority to charge.
Changing the description of a fee does not make an unauthorised charge lawful.
Relevant Case Law – Bornman v National Credit Regulator
In Bornman v National Credit Regulator (798/12) [2013] ZASCA 130, the Supreme Court of Appeal considered debt counselling contraventions involving fee deductions and conflicts of interest.
The matter included deductions described as collection fees or retainers for future legal work, including payments into an attorney's trust account.
The judgment illustrates the importance of examining the actual legal authority and nature of a deduction, rather than its description.
The decision must be considered in its historical and factual context, including the registration conditions applicable at the time.
Read the Bornman Judgment
Professional Warning
Particular scrutiny is required where:
- Legal fees substantially exceed disclosed estimates without justification.
- Deferred arrangements conceal the true costs.
- Attorneys are listed as credit providers without a valid basis.
- Legal-fee deductions continue without corresponding work.
- Fees materially reduce funds available to existing credit providers.
- Payments and services cannot be properly accounted for.
- Consumers are charged again for completed and paid services.
Consumer Protection Principle
A transfer must never become an opportunity to charge consumers again for services already completed and paid for.
Debt counselling and legal services must remain transparent, properly authorised and consistent with the consumer protection objectives of the NCA.
Perceptive Legal & Consulting Resources – NCRDC164
05.3 | Form 16 – Applications and Consumer Mandates
05.4 | Form 17.1 and Form 17.2 – Notifications and Assessments
05.5 | Certificates of Balance and Credit Provider Verification
05.6 | Affordability Assessments and Debt Review Proposals
05.7 | Negotiations, Acceptances and Rejections
05.8 | Debt Review Transfers – Form 17.7 and NCR Procedures
05.9 | Payment Distribution and Consumer Payment Monitoring
05.10 | Debt Review Withdrawals, Terminations and DHS Updates
05.11 | Court Applications and Supporting Documentation
05.12 | Clearance Certificates – Section 71
05.13 | Debt Counsellor Compliance, Recordkeeping and Audits
05.14 | Credit Provider Communication and Dispute Resolution
05.14 | Practical Templates, Forms and Checklists
06 | TRAINING & BACK TO BASICS
06.1 | Introduction to Back to Basics (BTB)
06.2 | BTB Volume 1 – Foundations of Credit and Affordability
06.3 | BTB Volume 2 – Credit Reports, Defaults and Credit Risk
06.4 | BTB Volume 3 – Assessments, Calculations and Reconciliations
06.5 | BTB Volume 4 – The Debt Review Process and Negotiations
06.6 | BTB Volume 5 – Court Processes and Credit Enforcement
06.7 | BTB Volume 6 – Credit Provider Objections and Practical Questions
06.8 | BTB Volume 7 – Debt Counsellor Governance and Compliance
06.9 | BTB Volume 8 – Consumer and Credit Provider Rights
06.10 | BTB Volume 8A – Alternative Dispute Resolution
06.11 | Professional Training Workshops and Presentations
06.12 | Practical Training for Debt Counsellors and Support Staff
06.13 | Legal Updates and Continuing Professional Development
06.14 | Training Enquiries and Programme Registration
07 | LEGAL UPDATES & ARTICLES
07.1 | Latest Legal Developments
07.2 | National Credit Act – Legislative and Regulatory Updates
07.3 | Recent Court Judgments and Legal Commentary
07.4 | Debt Review and Credit Enforcement Updates
07.5 | NCR Form 29 Consumer Complaints
NCR Form 29 – How to Lodge a Consumer Complaint
07.5.1 | How to Lodge a Complaint with the National Credit Regulator
Know Your Rights. Understand the Complaint Process.
Consumers who believe that a credit provider or debt counsellor has failed to comply with the National Credit Act 34 of 2005 may lodge a complaint with the National Credit Regulator (NCR).
Section 136 of the Act provides for the initiation of complaints concerning alleged prohibited conduct.
What is Form 29?
Form 29 is the prescribed form used to initiate a complaint with the NCR. A complaint should clearly identify the institution concerned, explain what happened and provide relevant supporting evidence.
When Should Consumers Consider Lodging a Complaint?
Examples of concerns that may warrant investigation include:
- A debt review application that is not properly processed.
- Unexplained delays or inaccurate debt review records.
- Fees charged without an identifiable lawful basis.
- Suspected reckless lending or inadequate affordability assessments.
- Misleading information about debt review removal or clearance.
- Failure to comply with statutory debt counselling obligations.
What Information Should Be Included?
A consumer should provide a clear and accurate description of the complaint, including relevant dates, the names of the institutions involved and the steps already taken to resolve the matter.
Supporting documents may include debt review applications, credit agreements, payment records, correspondence, credit reports and relevant Debt Help System (DHS) information.
The consumer should also explain the outcome or assistance requested from the NCR.
What Happens After Submission?
The NCR will assess the complaint in accordance with the National Credit Act and determine whether further investigation or other regulatory action is warranted.
Where the NCR issues a Notice of Non-Referral, the consumer may, subject to the applicable statutory requirements, have the right to refer the matter directly to the National Consumer Tribunal or a consumer court.
Important: Section 166 of the National Credit Act provides a three-year limitation period for referring complaints to the Tribunal or a consumer court, calculated in accordance with that section.
Important Consumer Information
Filing a complaint does not automatically cancel debt review, remove a credit agreement, suspend payment obligations or establish that unlawful conduct has occurred.
Each complaint must be considered on its own facts and supporting evidence.
How PLCS Can Assist
Perceptive Legal & Consulting Resources assists consumers in understanding their rights, preparing properly supported complaints and identifying the appropriate legal or regulatory process.
Professional guidance can make the difference between an unsupported allegation and a properly documented complaint.
PLCS Legal Guideline 07.5 | National Credit Act 34 of 2005 | Consumer Rights and Regulatory Complaints
07.6 | Consumer Rights and Credit Industry Developments
07.7 | Credit Provider Practices and Industry Directives
07.8 | Debt Counselling Industry News
07.9 | PLCS Legal Articles and Publications
07.10 | Frequently Asked Legal Questions
07.11 | Proposed Legislative Amendments and Public Commentary
08 | DEBT RELIEF & LEGAL OPTIONS
08.1 | Sequestration vs Debt Review
Sequestration or Debt Review: Understanding Your Options
Sequestration vs Debt Review: What Consumers Need to Know
When debt becomes overwhelming, consumers may consider debt review or sequestration. Although both processes deal with financial difficulties, they operate under different laws and have very different consequences.
Debt review is a regulated debt-rearrangement process intended to assist qualifying over-indebted consumers to repay their debts.
Sequestration is a legal insolvency process in which a person's estate is placed under administration for the benefit of creditors.
1. What is debt review?
Debt review is governed by the National Credit Act 34 of 2005.
A registered debt counsellor assesses the consumer's financial position and determines whether the consumer is over-indebted.
Where appropriate, a debt rearrangement is proposed and may be made an order by a competent court or the National Consumer Tribunal in circumstances permitted by the Act.
The consumer remains responsible for repaying the debts covered by the rearrangement.
Important: Debt review does not cancel the debt, and consumers are generally restricted from obtaining further credit while the statutory restrictions apply.
2. What is sequestration?
Sequestration is governed principally by the Insolvency Act 24 of 1936.
A court may grant a sequestration order where the applicable legal requirements are satisfied. Sequestration may be initiated voluntarily by the debtor or through an application by a creditor.
Once the estate is sequestrated, control of estate assets passes into the statutory insolvency administration process. A trustee administers the insolvent estate for the benefit of creditors.
Assets may be realised to pay creditors, subject to the law and applicable exemptions.
Important: Sequestration is not simply a method of cancelling debt. It carries significant consequences for property, contractual rights and the consumer's legal status.
3. What are the main differences?
Purpose: Debt review seeks to restructure qualifying credit obligations so that they can be repaid. Sequestration places an insolvent estate under collective administration for creditors.
Property: Debt review does not automatically transfer ownership or control of assets to a trustee. Sequestration may result in assets being sold through the insolvency process.
Repayment: Debt review generally requires continuing payments under a rearrangement. Sequestration involves the administration and distribution of estate assets, subject to insolvency law.
Credit: Debt review carries statutory restrictions on further credit. Sequestration creates a separate insolvency status with its own legal restrictions and consequences.
Completion: Debt review may conclude with a clearance certificate when the statutory requirements are met. Sequestration ordinarily requires rehabilitation, whether by court order or operation of law.
4. Can a sequestrated consumer remain under debt review?
Sequestration and debt review are separate legal processes. A sequestration order fundamentally changes the administration of the consumer's estate and the treatment of claims against it.
Where a consumer was previously under debt review, the effect of sequestration on the debt review records, any existing rearrangement order and the relevant credit agreements must be assessed individually.
A debt review record should not simply be treated as proof that the insolvency process has ended, nor should a sequestration order automatically be treated as a debt review clearance certificate.
Any required updates to debt review records and credit bureau information must be supported by the appropriate legal documentation and statutory reporting requirements.
5. What happens after sequestration?
An insolvent person remains subject to the legal consequences of sequestration until rehabilitation.
Rehabilitation may occur through a court order where the statutory requirements are satisfied, or automatically by operation of law in circumstances provided for by the Insolvency Act.
Section 127A generally provides for automatic rehabilitation after ten years from sequestration, unless the court orders otherwise before that period expires.
Important: Rehabilitation and correction of credit bureau records are related but separate matters. Consumers should verify that their records accurately reflect the relevant court orders and legal status.
6. Which option should a consumer consider?
The appropriate legal process depends on the consumer's financial circumstances, assets, income, liabilities and existing legal proceedings.
Debt review may be appropriate where the consumer is over-indebted but can make sustainable repayments under a lawful rearrangement.
Sequestration may require consideration where insolvency law applies and the statutory requirements, including the advantage-to-creditors requirements relevant to the application, can be satisfied.
Consumers should obtain a proper assessment before entering either process. Neither process should be presented as a guaranteed solution or a quick method of removing debt.
Remember: Debt review is primarily a debt-repayment and rearrangement process. Sequestration is an insolvency process affecting the administration of a person's estate.
PLCS Legal Guidance: Consumers should obtain advice based on their individual circumstances before applying for debt review, voluntary surrender or sequestration. Existing court orders and legal proceedings must be considered.
Legal references: National Credit Act 34 of 2005, sections 86, 87 and 88; Insolvency Act 24 of 1936, including sections 20, 127 and 127A.
General consumer information only. This article does not constitute individual legal advice.
08.2 | Sequestration vs Administration Orders
Debt Review or Administration: Understanding Your Options
Debt Review vs Administration Orders: What Consumers Need to Know
When consumers struggle to pay their debts, they may hear about debt review and administration orders. Although both processes can assist consumers experiencing financial difficulties, they are governed by different laws and have different requirements and consequences.
Debt review is a regulated process under the National Credit Act that assists qualifying over-indebted consumers through debt assessment and possible rearrangement of their credit obligations.
Administration is a Magistrates' Court procedure under which qualifying debts are administered and repaid through an appointed administrator.
1. What is debt review?
Debt review is governed by sections 86 to 88 of the National Credit Act 34 of 2005.
A consumer applies to a registered debt counsellor, who assesses the consumer's financial circumstances and credit obligations.
Where the consumer is over-indebted, the debt counsellor may recommend a debt rearrangement in accordance with the Act.
A competent court, or the National Consumer Tribunal where legally permitted, may formalise the rearrangement.
The consumer remains responsible for repaying the debts included in the rearrangement.
Important: Debt review does not automatically cancel debts, reduce contractual interest rates or remove existing court judgments.
2. What is an administration order?
Administration orders are governed by section 74 and related provisions of the Magistrates' Courts Act 32 of 1944.
The procedure is available to qualifying debtors who cannot immediately pay their debts but can make regular payments.
The Magistrates' Court may grant an administration order and appoint an administrator to receive payments and distribute them to creditors.
Administration orders are subject to a prescribed monetary debt limit. The applicable limit must be verified before an application is made.
Important: An administration order does not automatically cancel the debts. Payments may continue for a considerable period, depending on the outstanding balances, interest, costs and available instalments.
3. What are the main differences?
Legislation: Debt review is regulated by the National Credit Act. Administration orders are regulated by the Magistrates' Courts Act.
Who assists the consumer? Debt review is conducted by an NCR-registered debt counsellor. Administration is conducted through a court-appointed administrator.
Debt limit: Debt review has no general maximum monetary debt limit. Administration orders are subject to a prescribed monetary limit.
Types of debt: Debt review primarily concerns credit agreements governed by the National Credit Act. Administration may include qualifying debts that are not necessarily NCA credit agreements.
Repayment: Debt review provides for repayment under a lawful rearrangement. Administration provides for payments through an administrator in accordance with the court order.
Credit restrictions: Debt review carries statutory restrictions on further credit. Administration has different legal consequences and must not be confused with debt review.
Legal proceedings: Each process has its own requirements and limitations concerning enforcement by creditors.
4. What happens to interest, fees and payments?
Under debt review: The consumer generally continues paying the credit obligations under the applicable arrangement.
Interest and charges remain subject to the National Credit Act, the credit agreement and any lawful concessions accepted by the credit provider.
Debt review does not automatically freeze interest or entitle a debt counsellor to reduce contractual interest rates without a lawful basis.
Under administration: Payments are made through the administrator, who distributes funds to creditors subject to the administration order and lawful deductions.
Interest, administration costs and fees can affect the time required to settle the debts.
Consumers should always request a clear breakdown of payments, fees, interest and outstanding balances.
5. How does the consumer complete the process?
Debt review: Section 71 of the National Credit Act regulates the issuing of a clearance certificate once the applicable statutory requirements have been satisfied.
Depending on the circumstances, a consumer may qualify for clearance even where a qualifying mortgage agreement remains outstanding, provided the statutory requirements are met.
A debt counsellor must verify the relevant account information and compliance with the requirements before issuing a clearance certificate.
Administration: The administration order continues until it is discharged or otherwise terminated in accordance with the Magistrates' Courts Act.
Consumers should obtain confirmation that the relevant debts and lawful costs have been dealt with and that the necessary court and credit bureau records are updated.
Important: A debt review clearance certificate and the discharge of an administration order are different legal procedures.
6. Which option should a consumer consider?
The appropriate process depends on the consumer's income, living expenses, total debt, types of obligations and ability to make sustainable repayments.
Debt review may be appropriate where a consumer is over-indebted under the National Credit Act and can repay qualifying credit obligations through a realistic rearrangement.
Administration may be considered where the debtor meets the statutory requirements, including the prescribed debt limit, and can make regular payments under an administration order.
Existing judgments, enforcement proceedings and the nature of the debts must also be considered.
Consumers should not be encouraged to enter either process without understanding the consequences, fees and repayment obligations.
Professional assessment before choosing a process can prevent unnecessary costs and further financial difficulties.
Remember: Debt review and administration are not interchangeable. Each has different legal requirements, costs, protections and procedures for completion.
PLCS Legal Guidance: Before entering a formal debt-relief process, consumers should obtain a proper assessment of their financial circumstances and understand their rights and responsibilities.
Legal references: National Credit Act 34 of 2005, sections 71, 79 and 86 to 88; Magistrates' Courts Act 32 of 1944, sections 74 to 74W; applicable regulations.
General consumer information only. This article does not constitute individual legal advice.
08.3 | Debt Review vs Administration Orders
Debt Review or Administration: Understanding Your Options
Debt Review vs Administration Orders: What Consumers Need to Know
When consumers struggle to pay their debts, they may hear about debt review and administration orders. Although both processes can assist consumers experiencing financial difficulties, they are governed by different laws and have different requirements and consequences.
Debt review is a regulated process under the National Credit Act that assists qualifying over-indebted consumers through debt assessment and possible rearrangement of their credit obligations.
Administration is a Magistrates' Court procedure under which qualifying debts are administered and repaid through an appointed administrator.
1. What is debt review?
Debt review is governed by sections 86 to 88 of the National Credit Act 34 of 2005.
A consumer applies to a registered debt counsellor, who assesses the consumer's financial circumstances and credit obligations.
Where the consumer is over-indebted, the debt counsellor may recommend a debt rearrangement in accordance with the Act.
A competent court, or the National Consumer Tribunal where legally permitted, may formalise the rearrangement.
The consumer remains responsible for repaying the debts included in the rearrangement.
Important: Debt review does not automatically cancel debts, reduce contractual interest rates or remove existing court judgments.
2. What is an administration order?
Administration orders are governed by section 74 and related provisions of the Magistrates' Courts Act 32 of 1944.
The procedure is available to qualifying debtors who cannot immediately pay their debts but can make regular payments.
The Magistrates' Court may grant an administration order and appoint an administrator to receive payments and distribute them to creditors.
Administration orders are subject to a prescribed monetary debt limit. The applicable limit must be verified before an application is made.
Important: An administration order does not automatically cancel the debts. Payments may continue for a considerable period, depending on the outstanding balances, interest, costs and available instalments.
3. What are the main differences?
Legislation: Debt review is regulated by the National Credit Act. Administration orders are regulated by the Magistrates' Courts Act.
Who assists the consumer? Debt review is conducted by an NCR-registered debt counsellor. Administration is conducted through a court-appointed administrator.
Debt limit: Debt review has no general maximum monetary debt limit. Administration orders are subject to a prescribed monetary limit.
Types of debt: Debt review primarily concerns credit agreements governed by the National Credit Act. Administration may include qualifying debts that are not necessarily NCA credit agreements.
Repayment: Debt review provides for repayment under a lawful rearrangement. Administration provides for payments through an administrator in accordance with the court order.
Credit restrictions: Debt review carries statutory restrictions on further credit. Administration has different legal consequences and must not be confused with debt review.
Legal proceedings: Each process has its own requirements and limitations concerning enforcement by creditors.
4. What happens to interest, fees and payments?
Under debt review: The consumer generally continues paying the credit obligations under the applicable arrangement.
Interest and charges remain subject to the National Credit Act, the credit agreement and any lawful concessions accepted by the credit provider.
Debt review does not automatically freeze interest or entitle a debt counsellor to reduce contractual interest rates without a lawful basis.
Under administration: Payments are made through the administrator, who distributes funds to creditors subject to the administration order and lawful deductions.
Interest, administration costs and fees can affect the time required to settle the debts.
Consumers should always request a clear breakdown of payments, fees, interest and outstanding balances.
5. How does the consumer complete the process?
Debt review: Section 71 of the National Credit Act regulates the issuing of a clearance certificate once the applicable statutory requirements have been satisfied.
Depending on the circumstances, a consumer may qualify for clearance even where a qualifying mortgage agreement remains outstanding, provided the statutory requirements are met.
A debt counsellor must verify the relevant account information and compliance with the requirements before issuing a clearance certificate.
Administration: The administration order continues until it is discharged or otherwise terminated in accordance with the Magistrates' Courts Act.
Consumers should obtain confirmation that the relevant debts and lawful costs have been dealt with and that the necessary court and credit bureau records are updated.
Important: A debt review clearance certificate and the discharge of an administration order are different legal procedures.
6. Which option should a consumer consider?
The appropriate process depends on the consumer's income, living expenses, total debt, types of obligations and ability to make sustainable repayments.
Debt review may be appropriate where a consumer is over-indebted under the National Credit Act and can repay qualifying credit obligations through a realistic rearrangement.
Administration may be considered where the debtor meets the statutory requirements, including the prescribed debt limit, and can make regular payments under an administration order.
Existing judgments, enforcement proceedings and the nature of the debts must also be considered.
Consumers should not be encouraged to enter either process without understanding the consequences, fees and repayment obligations.
Professional assessment before choosing a process can prevent unnecessary costs and further financial difficulties.
Remember: Debt review and administration are not interchangeable. Each has different legal requirements, costs, protections and procedures for completion.
PLCS Legal Guidance: Before entering a formal debt-relief process, consumers should obtain a proper assessment of their financial circumstances and understand their rights and responsibilities.
Legal references: National Credit Act 34 of 2005, sections 71, 79 and 86 to 88; Magistrates' Courts Act 32 of 1944, sections 74 to 74W; applicable regulations.
General consumer information only. This article does not constitute individual legal advice.
