Debt review legislation under the National Credit Act (NCA) protects over-indebted consumers from harassment and unfair debt collection practices. When an individual applies for debt review, their debt counsellor informs creditors of their intention, detailing their financial situation and proposed repayment plan. Creditors can’t take legal action against the individual for up to 60 working days. The debt counsellor works with creditors to reach an agreement, and if no agreement is reached, the matter may be referred to a Magistrate’s Court for a ruling. If approved, the plan becomes a court order, requiring the individual to make payments.
How does debt review protect me from creditors?
The debt review application offers immediate legal protection to over-indebted consumers, preventing unfair harassment or collection practices by creditors.
