What debt review is under the National Credit Act

What is debt review?

Debt review is a legal process under section 86 of the National Credit Act (NCA). A consumer applies to a debt counsellor to be declared over-indebted. The debt counsellor assesses the application and, if the consumer is over-indebted, may propose to the Magistrate's Court that the consumer's obligations be re-arranged.

Olvian is not a debt counsellor. It is a referral service: with a person's consent it passes a request to registered debt counsellors, who pay Olvian a fee, and they may contact the person. Olvian does not assess debts, give advice or deal with creditors, and nothing here says whether anyone should go under debt review.

Who is allowed to do debt review?

A debt counsellor registered with the National Credit Regulator (NCR). Section 44(2) of the Act says that a person "must not offer or engage in the services of a debt counsellor in terms of this Act, or hold themselves out to the public as being authorised to offer any such service, unless that person is registered".

The NCR says consumers can get a list of all registered debt counsellors on its website, www.ncr.org.za, or call 0860 627 627. It also says a registered counsellor has a certificate showing a name and an "NCRDC" number, and that a consumer has the right to see that proof.

What does "over-indebted" mean?

Section 79(1) defines it. A consumer is over-indebted if "the preponderance of available information at the time a determination is made indicates that the particular consumer is or will be unable to satisfy in a timely manner all the obligations under all the credit agreements to which the consumer is a party". The assessment has regard to the consumer's:

• financial means, prospects and obligations; and
• probable propensity to satisfy in a timely manner all the obligations, as indicated by the consumer's history of debt repayment.

The test looks at all of a person's credit agreements together and at what they can afford. It is not met merely because someone owes a lot. In its 2021 media release the NCR said that "only over-indebted consumers can qualify for debt counselling" and that a consumer who does not qualify is rejected.

What are the steps?

The Act sets out the order in section 86.

1. Application. The consumer applies to a debt counsellor in the prescribed manner and form (section 86(1)). A debt counsellor may require an application fee not exceeding the prescribed amount (section 86(3)(a)).
2. Proof of receipt and notice. The debt counsellor must give the consumer proof of receipt and notify all credit providers listed in the application and every registered credit bureau (section 86(4)).
3. Co-operation. The consumer, and each credit provider notified, must comply with reasonable requests by the debt counsellor and participate in good faith in the review and in any negotiations (section 86(5)).
4. Assessment. The debt counsellor must determine whether the consumer appears to be over-indebted and, if the consumer seeks a declaration of reckless credit, whether any of the credit agreements appear to be reckless (section 86(6)).
5. Outcome. The debt counsellor reaches one of the conclusions in section 86(7), set out below.

What are the possible outcomes?

Section 86(7) gives three.

The consumer is not over-indebted. The debt counsellor must reject the application (section 86(7)(a)). The consumer may, with leave of the Magistrate's Court, apply directly to that court for an order (section 86(9)).

The consumer is not over-indebted but is struggling. Where the consumer is experiencing or likely to experience difficulty satisfying all obligations in a timely manner, the debt counsellor may recommend that the consumer and the credit providers voluntarily consider and agree on a plan of debt re-arrangement (section 86(7)(b)). If all accept, the debt counsellor records the proposal as an order and files it as a consent order (section 86(8)(a)).

The consumer is over-indebted. The debt counsellor may issue a proposal recommending that the Magistrate's Court make either or both of these orders (section 86(7)(c)):

• that one or more of the credit agreements be declared reckless credit, if the debt counsellor has concluded they appear to be reckless; and
• that one or more of the consumer's obligations be re-arranged by extending the period of the agreement and reducing each payment accordingly, by postponing payment dates for a specified period, by both, or by recalculating the obligations because of contraventions of certain provisions of the Act.

If the credit providers do not accept the proposal, the debt counsellor refers the matter to the Magistrate's Court with the recommendation (section 86(8)(b)). Whether to propose any of this, and in what form, is the debt counsellor's decision. Olvian does not make it.

What changes while debt review is under way?

The Act and the NCR describe several effects.

• No new credit. Section 88(1) says a consumer who has filed an application under section 86(1) must not incur further charges under a credit facility or enter into any further credit agreement, other than a consolidation agreement, until an event listed in that subsection occurs. The NCR says that a consumer is eligible for new credit only after being issued with a clearance certificate.
• A hold on enforcement. Under section 88(3), a credit provider that receives notice may not exercise or enforce by litigation or other judicial process any right or security under the credit agreement until the consumer is in default under it and one of the listed events has occurred, subject to sections 86(9) and 86(10).
• A limit on the hold. Section 86(2) says an application cannot be made in respect of, and does not apply to, a particular credit agreement if the credit provider has already proceeded to take the steps contemplated in section 130 to enforce it.
• Creditors can give notice to terminate. Section 86(10)(a) allows a credit provider, where the consumer is in default under an agreement under review, to give notice to terminate the review at any time at least 60 business days after the date of application, with notice to the consumer, the debt counsellor and the NCR. It cannot do so if the application has already been filed in a court or the Tribunal (section 86(10)(b)).
• Credit bureaux are told. The debt counsellor must notify every registered credit bureau (section 86(4)(b)(ii)). Our guide on leaving debt review explains how that record is removed.

Who cannot use debt review?

The NCR lists several limits in its 2021 media release. Consumers married in community of property need to apply jointly. Consumers under debt administration cannot apply for debt counselling. Section 86(2), above, limits it for agreements already in enforcement. Ask the registered debt counsellor about your own position.

What questions can I put to a registered debt counsellor?

1. Are you registered with the NCR? What is your registration number?
2. What will you assess, and what documents do you need from me?
3. What fees do I pay, when, and which of them are refundable? See our guide on costs and the NCR fee guidelines.
4. Which of my credit agreements would be included, and which would not?
5. What happens if you conclude I am not over-indebted?
6. How do I get a clearance certificate at the end?

Where do I complain, and who decides disputes?

Section 136(1) says any person may submit a complaint about an alleged contravention of the Act to the NCR in the prescribed manner and form. The National Consumer Tribunal, established by section 26 of the Act, hears matters that reach it. The NCR's number is 0860 627 627.

Sources

Checked on 31 October 2026. Olvian is not a debt counsellor or a financial services provider and this guide is information, not advice.

• National Credit Act 34 of 2005, sections 26, 44, 79, 86, 88 and 136, consolidated text on LawLibrary (the copy Olvian read was consolidated to 13 March 2015).
• National Credit Regulator: media release "Debt counselling offers new lease of life for over-indebted consumers", August 2021
• National Credit Regulator: register of debt counsellors and complaints.