Navigating Creditor Communications During Debt Review: Will Collection Activities Persist?

In the financial odyssey called debt review, a common question echoes: "Will the collection activity from my creditors continue?" It's a question laden with the weight of anxiety as phone calls and collection letters often come with a sense of pressure. Let's embark on an exploratory journey to understand the nature of creditor interactions during the debt review process.

The Onset of Debt Review: A Shield Emerges

Entering the realm of debt review brings along a layer of protection. Once officially under debt review, the relentless waves of phone calls and letters from creditors are legally required to cease. The debt review process aims to create a conducive environment for financial recovery, away from the stress of constant collection reminders.

Legal Provisions: A Beacon of Light

The National Credit Act (NCA) plays a role akin to a guiding lighthouse. It delineates the rules governing creditor interactions during debt review. Creditors are generally prevented from initiating or continuing legal proceedings against consumers for outstanding debts during this period.

Communications: A Pathway Defined

While the legal provisions limit creditors' collection activities, communication is not entirely obliterated. Creditors and debt counsellors may communicate to negotiate and agree on repayment terms that align with the consumer's financial capabilities.

Exceptions: Navigating the Grey Areas

Exceptions dot the landscape of this process. In some cases, if a creditor has already taken legal action before the debt review commencement, they might continue with the legal processes, but such scenarios are navigated with the guidance of your debt counsellor.

Conclusion: A Journey of Understanding

Navigating the debt review process is a voyage filled with diverse experiences. Understanding that the law mitigates the intensity of collection activities during debt review can be a significant relief. However, being prepared for varying degrees of interactions and communications is essential to maneuver this journey with resilience and clarity.

Most creditors will stop once they receive the first payment. Should they continue you must advise them that you are under debt review with Debt Sage and provide them with a copy of Form 17.2 or request that they contact us on 010 005 5350.