Debt Vader Is Angry
So, your consumer has settled all debt included in a restructure order. As a DC you now have 7 days in which to issue the consumer with a clearance certificate. You then have another 7 days to file a copy of that certificate with all registered credit bureaux. The NCA then requires the credit bureaux to expunge from its records any reference that the consumer was under debt review as well as information relating to any default the consumer may have that either caused or was part of that application for debt review.
So, the roles are clear right? The consumer settles his debt, the DC confirms this and issues a clearance certificate, and the credit bureau expunges the consumer’s credit record of all related information.
‘So why is it that a credit bureau is refusing to act upon receipt of a DC’s clearance certificate, insisting instead, on paid up letters issued by the credit providers? ‘
So why is it that a credit bureau is refusing to act upon receipt of a DC’s clearance certificate, insisting instead, on paid up letters issued by the credit providers? Does this credit bureau not trust the competence or integrity of debt counsellors? Whether or not that is the case, are they entitled to disregard the unambiguous requirements of the Act?
Now, you may feel that I’m making a big deal about nothing but let’s take this a few steps further. Imagine a credit provider wants the form 16 because they refuse to accept your form 17.1 as confirmation that the consumer has applied for debt review. Perhaps they want your source documents and calculations because they refuse to accept the outcome as stated on your form 17.2. or, as one or two credit providers had done in the past, refuse your form 17.1 because the consumer’s credit report did not reflect that the consumer was under debt review. We cannot and should not allow the role of the DC to be constantly undermined.