When a client applies for Debt Counselling, the Debt Counsellor’s responsibilities –  notifications are sent to relevant parties to ensure the process is transparent and compliant with regulations. This notification process ensures that all parties are informed and that the client’s rights are protected throughout the Debt Counselling journey.

Here’s how it works:

1. Notification to Credit Providers: The debt counsellor sends a Form 17.1 to all credit providers listed in the client’s application. This form notifies them that the client has applied for Debt Counselling and requests detailed information about the client’s accounts.
2. NCR Funnel: The National Credit Regulator (NCR) maintains a database to track Debt Counselling applications. Once the application is submitted, it is recorded in the NCR’s system, ensuring that the process is monitored and regulated. This results in a flag being added to the client’s credit profile, indicating that they are under Debt Review. This flag prevents the client from taking on new credit during the process.
3. Updates During the Process: As the Debt Counselling progresses, updates are sent to credit providers and credit bureaus. For example, once a repayment plan is finalized, a Form 17.2 is issued to confirm the details.
4. Clearance Certificate: Once the client has completed the repayment plan, the debt counsellor issues a clearance certificate. This is sent to the NCR and credit bureaus, removing the Debt Review flag from the client’s profile.