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NCT Required Documentation for Debt Review Consent Orders.

The National Credit Tribunal can hear debt review matters where all parties have agreed to a repayment plan.  The NCT then have the authority to issue an order. These are known as Consent Orders.

When asking for such an order the NCT have reminded Debt Counsellors that they have to have the proper documents from all creditors. Where creditors have given a provisional acceptance and not what the industry calls a final acceptance letter the NCT are not 100% sure that the creditor has agreed to the plan. Thus they will not grant the order (in fact legally speaking they cannot do so) and this can cause a lot more work and the matter to be turned down.

The problem seems to originate with some creditors who are tardy in providing these final acceptance letters even if they are happy with the proposals. Even those using BASA’s preferred DCRS computer program (which works out how they want the debt repaid) seem to sometimes struggle to provide these system generated documents. The NCT are not able to work with other provisional documents. Recently the Debt Counselling Association of South Africa (DCASA) pushed for a change to the process to try reduce the back and forth and double documentation and correspondence but was rebuffed by other players. Debt Counsellors would like to see the process streamlined and better turnaround times which benefit consumers and creditors alike.

 

DownloadYou can Download the latest directive from the NCT in this regard here: NCT Practice Directive 1 of 2015