A consumer voluntarily applies for debt counselling to a DC by completing an application (Form 16) and by submitting relevant documentation.(Click here for required documents)
Consumers married in community of property(COP) must make a joint debt counselling application and cannot apply for debt counselling without consent from their spouse.
A DC will inform credit providers and credit bureaus of the debt counselling application by issuing a Form 17.1 within five (5) business days of accepting the application from a consumer.
A credit provider will send the Certificate of Balance(COB) to the DC showing the latest financial information specific the credit agreement, such as outstanding balance, monthly instalment, interest rate and others within five (5) business days of receiving the notification for debt counselling application (Form 17.1).
A credit bureau will place a debt counselling flag on the consumer’s credit profile. This flag is not a negative listing or “Blacklisting” as mostly referred to, it is just an indicator that the consumer is under debt counselling.
A consumer who is under debt counselling cannot apply for further credit.
The debt counselling process (i.e. the application, the negotiation process and the referral process to the Magistrates Court or the NCT) has to be completed within a period of 60 business days from date of application. Within this period, the consumer is protected against legal action such as repossession of assets, default judgment and others by the credit providers.