Debt Counselling

Invela Financial Corporation is not a debt counselor nor do we employ debt counsellors. However, we believe in and adhere strictly to the regulations subscribed in the National Credit Act. As a registered credit provider, Invela wants to assist consumers by providing information on debt counseling and help borrowers fight against over-indebtedness.

Debt counselors were created as part of the National Credit Act to provide relief for over indebted consumers. Debt counselors may be approached by a consumer or referred to by the Courts. Debt counselors assess a consumer's financial status including income, expenses and debt obligations from credit providers. Also, future financial events are considered in the evaluation. Honest, accurate and complete information is critical for a debt counselor to properly assess the over-indebted status of a consumer.

One of two possible outcomes will result. The debt counselor may conclude that the consumer IS NOT over-indebted and will issue a letter of rejection. Alternatively, the debt counselor may find the consumer IS over-indebted and will work with the listed credit providers to restructure the consumer's loans. During the debt restructure process, the debt counselor assesses the consumer loans and credit agreements for reckless lending by credit providers.

Debt counselors are required to advise credit bureaus and credit providers that the consumer has placed under debt review. Credit providers have 10 business days to supply information requested by a counselor. The debt review process runs for a maximum of 60 business days. No new credit may be granted to the consumer during the debt review process except for consolidation loans which are intended to improve debt payment obligations. Importantly, no legal processes can be initiated by credit providers during the debt review process.

A common debt restructuring method used is lengthening of the remaining loan repayment period. This has the effect of lower the size of the monthly payments. Debt counselors can only recommend and present loan restructures. Both the consumer and credit provider must agree to the restructure and are required to sign consent orders. If all parties do not agree to a debt restructuring proposal, then the counselor will apply to the Court for an order to compel the dissenting party to comply. The basis for the debt restructures should be fair to both consumers and credit providers. The purpose of debt restructuring is not for borrowers to avoid their obligations, but to assist them with a mediated method for relief. Ultimately, consumers need to meet their financial commitments so they can engage in the credit market responsibly.

When Invela is contacted by a counselor, we check to confirm they are registered with the National Credit Regulator. We have provided a link so that you may check online.

Click here www.ncr.org.za/register_of_registrants/index.php.

Also, The National Credit Act No.34 of 2005 entitles you to one FREE Credit Report once a year in your month of birth! Queries about your credit record can be from a credit bureau and is a consumer's right to challenge any information contained in it.

To apply for a free copy of your credit report, click here. Credit Report.

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