In the  the previous article on the report by the Debt Review Task Team, the National Credit Regulator, Mr Davel commented that, “We also found many cases where debt counsellors promote the debt review process as a payment holiday, with no realistic intention of effective rehabilitation”.

This is a sentiment that has been experienced by the writer and seen in a recent matter our law firm dealt with where the Debt Counsellor set down the application of debt rearrangment for the 22 November 2010. We check with the clerk of the court in question and the first available date was in fact the 30th August 2010.

Similarly Denise Coetzee of another law firm posted the following comment on another article on this blog:

“A debtor has applied for debt councelling and a Section 86(C) was served. They only offered R200.00 on a R10 000.00 debt and the Court date is in April 2011. Is there anyway the Court hearing can be brought earlier by the Creditor and dispute application? Thanks.”

In our case we simple obtained the earlier date from the clerk of the court and set the matter down and served it on all effected parties, on the basis that it was in the interests of all parties that the matter get heard as soon as possible.

To answer Denise’s question, it is suggested that she contact the relevant court to see what is the first available date for the hearing of the debt re-arrangement application is. If the debt counsellor is abusing the process simply obtain the earlier date from the clerk and serve and file this on all relevant parties. Then if her client intends opposing the application, file an affidavit setting out the grounds of the opposition, which would have to be sound in terms of the National Credit Act.

Perhaps it is also time that debt counsellors that are adopting a dilatory approach to buy debtors a “payment holiday” are reported to the National Credit Regulator, who will hopeful sanction such counsellors.