Tag Archives: 17.2

NCR logo

NCR Guideline on Withdrawing from Debt Review

Reading Time: 3 minutes

Leaving Debt Review

When a person approaches a Debt Counsellor they begin a statutory process governed by the National Credit Act (NCA). When a person asks a Debt Counsellor to look over their situation this needs to be indicated on the National Credit Regulator’s (NCR) database. They, in turn, notify the credit bureaus.


Then the Debt Counsellor asks the consumer and all their credit providers for more information (the Debt Counsellor sends out a form called a Form 17.1). Once they have looked over that info they know if the person needs to simply adjust their monthly spending habits or whether they need legal protection though the NCA and debt review.


At this point, the Debt Counsellor will send out a form called a Form 17.2 which says either the consumer needs help or not. If the consumer needs help the Debt Counsellor will make a few proposals to the credit providers and gather their responses for inclusion in a court document. The matter then goes to court for a debt restructuring court order. This stays in force for as long as the consumer pays according to the arrangement.

Leaving Debt Review

Some consumers have hopped in and out of debt review so many times in a short time period (for a variety of reasons incl not paying what is required and not getting good service etc) thus due to frustration by some parties, the NCR eventually issued a (non binding ) guideline on how to treat the process when someone wants to leave debt review. In many cases consumers who began the process simply did not pay for the services they had been rendered. Obviously many firms want to recover the cost of their services and so changes where made to the process when such consumers want to reenter the credit market after having applied for debt review. Basically, The NCR say that they feel that the consumer has to pay for those services or not be able to use credit again. Another issue that prompted the changes was when the National Credit Act was amended to allow for consumers who had paid up all their smaller debt to leave the process. As many consumers have Bonds there is no need for a consumer to be under debt review for the full term of the bond. Thus the process changed somewhat and the NCR issued a guideline or non binding opinion – as they are allowed to under the NCA.

The guideline highlights that the process is a serious one and should not be undertaken lightly

The guideline highlights that the process is a serious one and should not be undertaken lightly and without commitment to the process. The process works well and has helped hundreds of thousands of consumers. As such it is one of the best ways to deal with debt in the world. At the same time, the NCR wish to help create uniformity across the industry with how the withdrawal process should be conducted.

Download the NCR’s Process Guideline

Part of the process involves what to do when only some of the debts are paid up and what to do if the consumer is not cooperating with the process.


You can download the NCR Guideline here:

Withdrawal from debt review NCR guidelines Feb 2015