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The Debt Counselling Process

From Voluntary Application to Credit Profile Updates

The Application Process

  1. Voluntary Application (Form 16):
    • Consumers voluntarily initiate debt counselling by submitting a completed Form 16 along with necessary documentation to a registered Debt Counsellor.
    • If married in community of property (COP), both spouses must apply jointly, with mutual consent.
  2. Notification to Credit Providers and Credit Bureaus (Form 17.1):
    • Within five business days of accepting the application, the DC issues a Form 17.1 to inform all credit providers and relevant credit bureaus.
    • This communication formally alerts stakeholders that the consumer has applied for debt counselling.
  3. Submission of Certificate of Balance (COB):
    • Credit providers respond within five business days of receiving the Form 17.1 by sending the DC a Certificate of Balance (COB).
    • This document outlines critical details about the consumer’s financial obligations, such as:
      • Outstanding balances
      • Monthly instalments
      • Interest rates
  4. Credit Profile Flagging:
    • The consumer’s credit profile is updated with a Status A ( Applied for debt counselling and being assessed ) by credit bureaus.
    • This flag is not a negative listing or “blacklisting”; it serves as an indicator that the consumer is undergoing debt counselling and temporarily unable to take on new credit.

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