In terms of Section 86 (1) of the National Credit Act, a consumer may apply to a debt counsellor to be declared over-indebted. Once declared over-indebted, the debt counsellor will re-arrange the consumer’s debt obligations and negotiate with the affected credit providers for a new repayment plan. These repayments are channelled via Payment Distribution Agencies to credit providers.
Atlas is an enterprise-wide solution which assists credit providers with the debt review process prescribed by the National Credit Act.
The Debt Review process aims to facilitate the communication of debt restructure proposals to Credit Providers (CP) from the Debt Counsellors (DC) on behalf of the over indebted consumer. The ideal outcome is one where the CP accepts the proposal and a restructured payment plan. The reality is that the proposal acceptance rate is much lower than desired and conflict often ensues resulting in avoidable litigation and foreclosures. In an attempt to increase the rate of accepted proposals and create a smoother and overall more streamlined process a widely adopted system with generally accepted restructure rules are required.
The objective of a system should be to address the inconsistencies currently being experienced and to improve the solve rate of proposals through consensual agreements while automating and streamlining administrative aspects of the process.
In terms of Section 86 (1) of the National Credit Act, a consumer may apply to a debt counsellor to be declared over-indebted. Once declared over-indebted, the debt counsellor will re-arrange the consumer’s debt obligations and negotiate with the affected credit providers for a new repayment plan. These repayments are channelled via Payment Distribution Agencies to credit providers.
