NCR Issue New Guidelines for Form 16
In their recent explanation document which the National Credit Regulator issued about the way consumers can withdraw from Debt Review they have said that Debt Counsellors are required to add the following clause to the Form 16 signed by the Consumer when they apply for Debt Review:
A Consumer who has applied for Debt Review can withdraw from Debt Review only before the recommendation of over-indebtedness (Form 17.2) has been issued by the Debt Counsellor.
After the recommendation of over-indebtedness (Form 17.2), a Consumer can only withdraw from Debt Review after the Form 17.W application has been granted by the Court.
A Consumer who has been issued with a Clearance Certificate or where a Court Order has been obtained indicating that the Consumer is no longer over-indebted and no longer under Debt Review will also be withdrawn from Debt Review.
Make Sure Your Clients Understand
The reason they want Debt Counsellors to add the new wording is to inform consumers of the consequences and implication of applying for debt review at the time of application and to help them see that there is a formal process for leaving debt review.
Download the Explanation Guide here: