Debt Review Expressions Explained:
When talking to a credit provider or Debt Counsellor they may mention a Form 17.1 and ask what the date of this form is.
What is this form and why is it important?
The National Credit Act (NCA) has a large number of official forms and documents that get used in the credit industry and which get used during debt review. One of these forms is called Form 17.1.
The Form 17.1 is a document used by Debt Counsellors to let a consumer’s various credit providers know that they have applied for debt counselling and that the Debt Counsellor has begun a debt review.
‘The Form 17.1 is a document used by Debt Counsellors to let a consumer’s various credit providers know that they have applied for debt counselling’
The form does not say that the person needs help, rather it tells the credit providers that they should send information to the Debt Counsellor so that they can check the consumer’s overall debt status. It is once the credit providers receive this form that they become aware that the consumer is looking for help with their debt situation.
In response, the credit provider will send information to the Debt Counsellor about the consumer’s accounts. This will include the amount outstanding, the overall debt, any additional monthly charges (like insurance or an account fee) and will let the Debt Counsellor know if they have started any legal action to collect funds from the consumer.
As the Debt Counsellor gets this information from all the consumer’s credit providers they are able to compare this to what is shown on credit bureau reports and what the consumer has told them. They are able to use this new up to date information to review the consumer’s debt. This is the actual debt review.
READ MORE: Debt Review Explained
Based on that information they are able to figure out if the consumer is in real trouble or if they could actually handle the debt by making a few small lifestyle changes each month. If the consumer does not really need to enter the debt restructuring process via the courts then the Debt Counsellor will help the consumer work on their budget and spending habits. They will also let the credit providers know that the debt review is not going forward as it is not needed. This seldom happens as most people who come to a Debt Counsellor have already made such changes to their spending.
‘The Debt Counsellor sends a follow-up form called a Form 17.2 to all the credit providers’
More commonly, the Debt Counsellor sends a follow-up form called a Form 17.2 to all the credit providers to let them know that their client is indeed over indebted and in need of serious help.
Did You Know?
When a person signs up for debt counselling the debt counsellor has 5 business days in which to then let the credit providers know about the debt review. During this time the Debt Counsellor will update the National Credit Regulator’s database, which in turn lets the credit bureaus know that the person has applied for someone to look over and review their debt situation.
The Debt Counsellor will also provide a copy of their Form 17.1 to the consumer.
Get A Copy
If you are just beginning the debt review process be sure to ask your Debt Counsellor for a copy of your Form 17.1. It can help if you are contacted by any of your credit providers.
Some departments (like collections) can take a few days to find out about the application for debt review. Being able to send them a copy of this form will help make sure they speak to your Debt Counsellor about your debts and stop pestering you.