WATCH | How I was placed on debt review against my will

As financial pressure continues to mount on consumers, more people are falling prey to dodgy debt counsellors who promise to lessen their monthly debt repayments only to trap them in the debt review process. Johanna Mabuela, 55, from Carolina in Mpumalanga, claims to have been put under debt review without her consent and has been struggling since March to have her name removed from the stringent review process. Debt review involves a debt counsellor negotiating with creditors on behalf of overly indebted consumers to reduce their monthly repayments.

The process can last up to five years, and during that period, the consumers cannot access any credit, and their IDs are listed by retailers and banks. Don’t fall for debt review scams. DebtBusters executive head, Benay Sager, says one should always deal with a registered debt counsellor and ask for proof of NCR registration.

Story to drop at 8pm.pic.twitter.com/6jZAop2uSG In July, more than 10-million consumers were reported to be over-indebted, with more than 700,000 under debt review. The National Credit Regulator (NCR) last year rescued and removed more than 38,000 consumers who were placed underdebt reviewwithout their knowledge. “I can’t buy anything on credit because of this.” — Johanna Mabuela Mabuela said she received a call from RSA Debt Solutions in March.

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The caller said they had noticed that Mabuela was paying too much interest on three accounts and that they could help her reduce the interest and the debt. She said she was assured that she would not be placed under debt review. “I specifically told them I did not want to be under debt review because I know how it works,” she said.

Mabuela later discovered that her accounts had been flagged and that she could no longer access credit facilities. She said that despite disputing the debt review process and obtaining a rejection letter, her accounts remain flagged, preventing her from opening new ones or using her existing credit facilities.

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