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IOL’s website Personal Finance Section has featured information from the Credit Ombud Manie van Schalkwyk. In these comments he mentions Debt Counselling and some action the Ombud has taken to assist consumers under debt review.

Here are 2 excerpts:

‘

A consumer entered into debt counselling in December 2009 and, to his knowledge, all of his creditors were being paid via a payment distribution agency (PDA). In April 2010, one of his creditors terminated the debt review process, alleging that the consumer was in default – in other words, he had not made payments in terms of the agreement reached between the debt counsellor and the credit provider. The credit provider proceeded with a sale in execution of the consumer’s property. The consumer contacted the ombud’s office. The sale in execution was halted after it was established that the consumer had not defaulted. It was found that the consumer’s bank had cleaned out his bank account to cover debts that he owed the bank. The bank did this before the PDA could access the consumer’s money and disburse it to all his creditors. The ombud managed to get the client back into debt counselling.’

…

A consumer applied for debt counselling in 2009, but the debt counsellor he engaged had his licence revoked by the National Consumer Tribunal. A second debt counsellor gave the consumer the run-around and, after two years, his application for debt counselling had still not been heard in court. One of the consumer’s creditors, a bank, proceeded with a sale in execution of his home. Another creditor, also a bank, terminated the debt review and obtained a judgment to sell the consumer’s car. The ombud intervened and reported the second debt counsellor to the National Credit Regulator for investigation. The ombud’s office managed to halt the sale in execution and get the banks to agree not to withdraw from debt counselling. The consumer was then able to approach another debt counsellor.

 

You can read the full article here: http://www.iol.co.za/business/personal-finance/financial-planning/financial/make-your-credit-record-work-for-you-1.1483489#.UTyBOhy6V8E