The Debt Counselling Process

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.