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Iemas Ask Debt Counsellors to Send them 17.3s if Clients Can’t Pay

If a consumer is unable to pay their regular debt review payment then they are encouraged to talk to their Debt Counsellor. The Debt Counsellor (is not required to by law but..) can then talk to the consumers’ credit providers. They can even send correspondence to the credit provider explaining that due to the Lockdown and Covid-19 Pandemic the consumer cannot pay as per the court order.

At present, it may be hard to have the court order amended to allow for a change in payments before the end of the month. Thus credit providers have been encouraging Debt Counsellors to reach out to them with a form called a 17.3. This unofficial form has been given the unofficial thumbs up by the National Credit Regulator in a non binding circular to the industry.

‘At present, it may be hard to have the court order amended to allow for a change in payments before the end of the month’

Some Debt Counsellors are cautious and do not want to send a form that is not specifically in the National Credit Act as they say they may be sued for it later and want to avoid liability etc if things go wrong. However, most Debt Counsellors are looking to assist their clients during this tough time period in as speedy a time frame as possible and feel confident to use a form signed off on by the NCR.

Many Credit Providers, like IEMAS, have told Debt Counsellors that they require the form to process any change. If they do not get such a form they will naturally assume that a non paying client can actually afford to pay and simply is not doing so. This will lead to them trying to hand the matter to their legal collections arm instead of staying within their debt review department.

IEMAS are also asking that consumer (through their Debt Counsellor) also attach a letter from their employer and a motivation letter. They would also appreciate a revised proposal (which admittedly could change later) along with the 17.3.

Consumers who know that they will not be able to make their usual payment must talk to their Debt Counsellors urgently.