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How can I be kept under debt review if I am unemployed?

Questions & AnswersCategory: Debt ReviewHow can I be kept under debt review if I am unemployed?
Anonymous asked 4 years ago

Good day.

At first I was employed in 2008 full time and then in 2009 ran into financial difficulties. Then I was never notified that my employer was going to be in-liquidated in 2010 till I received a registered mail from the liquidators. They confirmed that I am a subjudice creditor which means the monies are still being owned.

 

We first went to a first debt counseling firm called Credit Matters and they did sloppy work. Then my case was transferred to Debt Busters. My mother did a lot of follow ups with them on the progress of my debt review. The Debt Busters sucked their thumbs bothering to regularly update us. So we had a lawyer who specialises in commerical banking and when I was retrenched, I supplied each credit provider a copy of stamped and valid court papers of my employer going into liquidation.

 

Standard Bank thought I was lying and I told them to be my guest and take me to court. Then after a while they realised that I was speaking straight the facts and then they tried to threaten me more by using tatics of employing attorneys. The more I stood my ground, the much more they battled to take me to court because it was clear to them that I had no assets and I was on disability grant. Then my mother contacted Debt Busters to cancel the debt review because it had no benefit to my unemployment after three months.

 

She signed the mandate snd emailed it to them. Then today my other bank notified me that I am under debt review and it shocked me that Debt Busters did sloppy work. I drew out my transunion report and there was no defaults or judgements against me but there was a clear notice on this report that I was under debt review. How come on earth do Debt Busters leave me on debt reviee for five years when they knew that I had no job after three months? This made a huge prejudice.

 

We warned them before that we would be reporting them to NCR because we had all the correspondences on record on printed emails. They had no proof of the correspondences. So how come on earth did they not update the ITC firms when they knew that I was without a job? We communicated this separately to the credit providers and they were made aware of this. So luckily we all have three huge files at home printing every correspondence from wha we received from Credit Matters and Debt Busters.

 

So my question is how will Debt Busters explain all of this when they did not do so? So I got a job and am back on feet. They are not supposed to place me on ‘debt review’ for a lengthty time when a person is out of work for more than three months. This surely will preamount a huge prejudice to credit providers and surely the debt counselling firm will unlikely face music with NCR. The option we have is to challenge the reports with Transunion. How will Transunion deal with challenge reports? Do they have to inform credit providers on this? If credit providers do not show proof, what must then happen?

1 Answers
Matthys Potgieter Staff answered 4 years ago

Hi there

Thank you for the question.

It is unfortunate that Debtbusters and Credit Matters failed you. When you apply for debt review a debt counsellor is obliged by law to list the debt review with all registered credit bureaus.

As I am sure you have experienced, it is difficult to remain under debt review if you are unemployed. You need  a regular and consistent source of income in order to make the periodic payments to you credit providers.

If you exit the debt review however, the debt counsellor must update your status with the credit bureaus to reflect that you have exited the debt review process. the in which you exit the process has quite an impact on the final listing on you credit profile. If you defaulted on your debt review payments the status on your credit profile will reflect “defaulted under debt review”. If you withdrew voluntarily your status will reflect “voluntarily withdrawn”.

If the status on your credit profile is incorrect you have the right in term of the National Credit Act to dispute the listing. You must contact the various credit bureaus directly for this. They will investigate your claim and usually ask 30 working days to give feedback.

During the period that they are investigating the dispute, they must flag the relevant listing as “Being Disputed / Investigated” . As soon as they have the information they need they must take action and remove the listing completely if it is incorrect.

I suggest you contact TransUnion, Experian and XDS directly to lodge a dispute.

Kind Regards