A consumer who cannot make regular payments or is in debted to his creditors under the agreement they signed, can apply fordebt counselling. The consumer applies for debt counselling with the help of a debt counsellor or consultant. The Debt Counsellor will explain to the consumer what debt review or debt counselling is, the process and the fees. The consumer completes and signs a debt counselling application form called a Form 16.
Form 16 together with supporting documents is handed over to the debt counsellor or consultant. The consultant will check that the form 16 is completed correctly and all supporting documents have been provided.
The debt counselling process takes 60 working days. The creditor has 5 business days to confirm customer account details to debt counsellor. This is checked against what the consumer presented to debt counsellor. After 5 days, the creditor is reminded to give feedback. Another 10 days grace is given to the creditor. If the debt counsellor does not receive conformation from creditors, he may presume that the figure provided by consumer are correct. The debt counsellor will now determine if consumer is over indebt. The debt counsellor will now prepare a debt restructuring proposal to the creditors. The proposal must be sent 25 days from date of application. All creditors have 10 days to respond. If there is no response, the creditors will get a reminder and another 5 days to respond.
The proposal is finalised and will be sent to the Payment Distribution Agency to start the distribution to creditors.