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National Credit Act, 2005 (Act No. 34 of 2005)


National Credit Regulations, 2006

Chapter 3 : Consumer Credit Policy

Part D : Over-indebtedness, reckless lending and debt counselling

25. Letter of rejection


If a debt counsellor finds that a consumer is not over-indebted and makes a finding in terms of section 86(7)(a) of the Act, the debt counsellor must provide the consumer with a letter of rejection, containing the following information:


(1) Consumer’s full names, surname and identity number, if the consumer does not have an identity number, the passport and date of birth;


(2) Name, contact details and NCR registration number of debt counsellor;


(3) The basis for finding the consumer not to be over-indebted, including—
(a) calculated income considered;
(b) statutory and other deductions considered;
(c) living expenses considered;
(d) other debts considered.


(4) A copy of the assessment form.


(5) A statement advising the consumer of his/her right to approach the court in terms of section 86(9) within 20 business days for an order to be declared over-indebted, have agreements declared reckless and/or restructuring of his/her debt obligations.


(6) A statement advising the consumer that the application for debt review will be removed from all registered credit bureaux within 5 business days which will result in credit providers being entitled to take legal steps against the consumer.