I am currently on Debt Review and have been since 2010. I had a loan with ABSA bank at the time of applying for debt review.
due to not being able to afford more that R1000 per month for my debt review there was not much to go to ABSA.
a month ago i recieved a call saying that ABSA has terminated my Debt Review with them and has givn me over to lawyers to collect their money. i do not understand how this could have happened as i paid my review every month and has not skipped once. is this possible? is there any way they can re instate my review and can the interest keep accruing as time goes past? it feels as if i’l never get out of the review
It is important to remember that the interest still accrues even while under debt review. It is very important to ensure that any payment made to a credit provider, even through the debt review, is more than the interest that is added. If the interest added is more than the instalment, the balance will just keep growing and growing. Your debt counsellor must make sure of this
It is true that a credit provider cannot terminate a debt review if you have made payments in accordance with the court order. I would suggest that you talk to your debt counsellor to investigate why ABSA has terminated the debt review from their side.
There might be a legal reason, but if the termination was unlawful ABSA will have to reinstate the debt review from their side.
It is also important to remember that if one credit provider terminates, your whole debt review is not affected. Only that specific credit provider is affected. The rest of your creditors will carry on as normal through the debt review.