When the NCR realised that voluntary debt mediation prejudiced consumers by undermining the NCA and professional debt management, they amended the act to show that they were not in support of this method. The aim of debt review is to protect you, the consumer from credit providers (CPs) who lend you credit when you are clearly not in the financial position to pay it back. In such cases, the credit agreement is referred to as reckless lending, which is unlawful under the NCA, as the CP failed to follow its regulations. Debt review protects you from the unlawful repossession of your assets or property and gives you the opportunity to take legal action against the CP, so you can redress the wrongs committed against you, the consumer.
Furthermore, CPs often hire debt collectors on commission to collect those debts from you. Many of these debt collectors threaten, intimidate and harass consumers in a highly unethical and unprofessional manner, in order to get those payments from you. Another benefit of debt review is that your debt counsellor will protect you from such debt collectors, by dealing with them on your behalf, which is a huge weight off your shoulders. If you are experiencing financial difficulties and struggling to pay of your debt, as well as afford your basic living expenses, your debt counsellor can help by negotiating with your CPs to have your monthly repayments reduced and the term of the loan extended.
This new restructured payment plan will then be made into a court order that will protect you from CPs taking legal action against you. On the other hand, voluntary debt mediation does not involve the courts, so a court order cannot be obtained, which means you are not legally protected from your CPs taking legal action against you. Secondly, debt mediation only addresses one credit agreement at a time, while debt management deals with your entire credit profile all at once. In the case of debt review, you will end up with more cash in hand at the end of each month, so you can afford your monthly instalments, as well as cover your household expenses. Naturally, personal circumstances will dictate which of our debt solutions is best for you, depending on your level of over-indebtedness and the seriousness of your adverse credit listings.
