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The Latest Debtfree DIGI

Sunday, June 19, 2011

Standard Bank leads the way in "terminating" debt review participation

It seems that since the recent FRB v Collett case Standard Bank are leading the way in sending out notification that they do not want their internal debt review department to deal with negotiations and payment arrangements with consumers. Std have sent out hundreds if not thousands of letters to consumers and DC's saying they are doing what is called an 86(10) and do not want the consumer under debt review.

These letters do not end a debt review but they do mean that the account in question will probably get handed to legal or collections to be dealt with.

DC's have unanimously said they will now help consumers do what is called a 86(11) application in response to any enforcement attempts by creditors such as Std bank in these matters.

These matters will end up in front of a magistrate who will then have to decide if the matter is put back into debt review or not. Most DC's feel confident that 90% of these matters will be put back.

Many consumers are concerned that banks such as Standard though saying they want to "help consumers" at the highest levels in reality do not want to help clients in difficult situations. These consumers are now encouraging others not to bank with such organisations.

Others are saying that soon the banks might be able to close their debt review departments and let their legal and collection departments do things as before.

This will, of course, mean that many employees of banks such as Standard Bank will now find themselves out of a job and in need of debt review.

2 comments:

  1. Can I please have your email address to remove the debt review on my name

    ReplyDelete