Struggling with a personal loan: debt review, default notices and where to complain

If you cannot keep up with repayments, section 86 of the National Credit Act lets you apply to a debt counsellor for debt review. Section 129 stops a lender going to court before it has given you written notice. Section 136 lets you complain to the National Credit Regulator.

Olvian is a referral service, not a credit provider. We do not lend, we do not offer or advertise credit, and we are not debt counsellors. This guide explains rights under the National Credit Act, 2005 (NCA). It is information, not advice.

What should you do first if you are falling behind?

The Act's procedures start with a conversation. Talk to the lender before you miss payments, not after. Ask in writing what options it has and keep a record of the reply.

The NCA gives you formal routes as well. A lender that wants to enforce an agreement must first follow the steps in sections 129 and 130, and you can apply for debt review under section 86. The National Credit Regulator (NCR) registers credit providers and debt counsellors and keeps public registers of both on its website. Check that anyone offering to help with your debts is on the register before you pay them anything.

What does the lender have to do when you are in default?

Section 129(1)(a) says that if you are in default, the lender may draw the default to your attention in writing and propose that you refer the agreement to the NCR for debt intervention, to a debt counsellor, an alternative dispute resolution agent, a consumer court or an ombud with jurisdiction. The aim is that the parties resolve any dispute or agree a plan to bring the payments up to date.

Section 129(1)(b) says that, subject to section 130(2), the lender may not start legal proceedings to enforce the agreement before it has given you that notice (or the notice in section 86(10), where debt review applies) and met the further requirements in section 130.

Section 130(1) says a lender may approach the court for an order to enforce the agreement only if you are in default and have been in default for at least 20 business days, and:

• at least 10 business days have passed since it delivered a notice under section 86(10) or section 129(1); and
• in the case of a section 129(1) notice, you have not responded to it, or have responded by rejecting the lender's proposal.

Section 130 contains further requirements. The point for you is that a notice should arrive in writing before there is a court case. Read any notice you receive and note the date you received it.

Can you catch up on arrears?

Yes, in the circumstances in section 129(3). You may at any time before the lender has cancelled the agreement remedy the default by paying all amounts that are overdue, together with the lender's prescribed default administration charges and reasonable costs of enforcing the agreement up to that time. Section 129(4) limits the lender's power to reinstate an agreement after certain events, so do not wait.

Ask the lender for the exact figure in writing.

What is debt review?

Section 86(1) says a consumer may apply to a debt counsellor, in the prescribed manner and form, to have the consumer declared over-indebted. The counsellor, a person registered with the NCR, then follows the steps in section 86.

On receipt of your application, the counsellor must give you proof that it has been received and notify, in the prescribed manner and form, all the credit providers listed in the application and every registered credit bureau (section 86(4)).

The counsellor then assesses whether you appear to be over-indebted and whether any of your agreements appear to be reckless (section 86(6)). You and each credit provider must comply with the counsellor's reasonable requests and take part in good faith in the review and any negotiations (section 86(5)).

The counsellor may then:

1. reject the application if you are not over-indebted, even if an agreement appears to have been reckless when it was made (section 86(7)(a));
2. if you are not over-indebted but are likely to struggle to meet all your obligations on time, recommend that you and the credit providers voluntarily consider a plan of debt re-arrangement (section 86(7)(b)); or
3. if you are over-indebted, issue a proposal recommending that the Magistrate's Court declare one or more agreements reckless, if they appear to be, and re-arrange your obligations (section 86(7)(c)).

The re-arrangement options listed in section 86(7)(c)(ii) include extending the period of an agreement and reducing each payment, postponing payment dates for a specified period, doing both, setting a maximum rate of interest, fees or other charges for a period the court considers fair, and recalculating your obligations because of certain contraventions of the Act.

If the counsellor rejects your application, section 86(9) allows you, with the leave of the Magistrate's Court, to apply directly to that court for an order under section 86(7)(c).

Section 86(3) deals with fees. A counsellor may require an application fee not exceeding the prescribed amount before accepting your application, and may not require or accept a fee from a credit provider in respect of your application.

What changes while you are under debt review?

Section 88(1) says that once you have applied for debt review, or alleged in court that you are over-indebted, you must not incur further charges under a credit facility or enter into any further credit agreement, other than a consolidation agreement, until one of these events occurs:

• the counsellor rejects the application and the time for applying directly to court under section 86(9) has expired without you doing so;
• the court determines that you are not over-indebted, or rejects the counsellor's proposal or your application; or
• a court order or an agreement with your credit providers has re-arranged your obligations and all obligations under the re-arranged agreements are fulfilled, unless you fulfilled them through a consolidation agreement.

Section 88(3) restricts credit providers too. A provider that receives notice of the court proceedings in sections 83 or 85, or notice under section 86(4)(b)(i), may not exercise or enforce by litigation or other judicial process any right or security under the agreement until the events listed in that subsection happen.

Section 86(10) gives lenders a way out of a review. If you are in default under an agreement being reviewed, the lender may, at least 60 business days after the date you applied, give notice to terminate the review to you, the counsellor and the NCR. It may not do so if the application has already been filed in a court order or in the Tribunal.

Section 86(2) adds that you cannot apply for debt review in respect of an agreement where the lender has already taken the section 130 steps to enforce it.

Debt review is a serious step that affects your access to credit and requires you to follow a plan. Whether it suits your situation is a question for a registered debt counsellor, not for Olvian.

Where do you complain?

About a credit provider's conduct. Section 136(1) says any person may submit a complaint about an alleged contravention of the NCA, or an allegation of reckless credit, to the NCR in the prescribed manner and form. The NCR describes its role as investigating complaints and enforcing the Act. It also registers credit providers and debt counsellors, and lists the registers on its website.

Through the ombud scheme. The National Financial Ombud Scheme (NFO) began operating on 1 March 2024 by merging four earlier schemes, including the Credit Ombud. It deals with banking, credit and insurance complaints, says its service is free to the complainant and says it can look at a complaint only after you have first lodged it with your credit provider.

About how you were assessed. If you think a loan was made without a proper affordability assessment, see our guide on what a credit provider must check. Section 80 defines reckless credit, and a debt counsellor must consider whether any of your agreements appear to be reckless (section 86(6)(b)).

About the quotation or fees. See our guide on the quotation and agreement.

Write down the date, the people you spoke to and what was said. Keep every notice, statement and agreement.

What should you ask a debt counsellor?

These are factual questions, not advice.

1. Are you registered with the National Credit Regulator, and what is your registration number?
2. What is the application fee, if any?
3. Which of my agreements will be included in the review?
4. What does section 88 mean for new credit while the review is running?
5. How long will the review take, and who tells my credit providers?

How does Olvian fit in?

Olvian is a referral service. You ask once, and we pass your request to registered credit providers who may contact you. We do not offer or advertise credit, we do not run debt counselling and we do not advise on your debts. If you already have a loan you are struggling with, use the routes above.

Sources

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

• National Credit Act 34 of 2005, section 86: application for debt review
• Section 88: effect of debt review or re-arrangement order or agreement
• Section 129: required procedures before debt enforcement
• Section 130: debt procedures in a court
• Section 136: initiating a complaint to the National Credit Regulator
• Section 80: reckless credit
• National Credit Regulator: registers and complaints.
• National Financial Ombud Scheme and media release of 28 June 2024