African Bank loans under debt review

There is nothing special about searching a specific bank's name here. The National Credit Act applies to credit agreements with every registered credit provider, so the rule does not depend on which bank you approach. While you are under debt review:

• New credit is barred by section 88(1) of the National Credit Act.
• The debt-review flag tells the bank you are in a managed plan, and the NCR says applications are rejected because of it.
• A credit agreement made in breach of the bar may be declared reckless (section 88(4)).

So 'African Bank loans under debt review' is not a special product - the Act bars you from taking new credit while you are in the process.

Anyone can use a well-known bank's name in an advert. An advert promising loans from a named bank to debt-review clients may be:

• Not actually from that bank (check the bank's own website or call centre).
• A front for high-interest or advance-fee lending.
• Designed to harvest your details.

If in doubt, contact the bank through its official channels, never via the advert.

While under debt review, your relationship with a bank like African Bank is usually as a creditor, not a new lender. Your counsellor includes your existing African Bank debt in the restructuring proposal, and you pay the agreed reduced instalments either through a payment distribution agent or directly to the creditor. You can:

• Let your counsellor handle communication with the bank.
• Keep paying your plan so the bank debt reduces.
• Avoid applying for new bank credit until you finish.

Once you have your clearance certificate, you can approach any bank normally.

1. Do not chase new bank loans during debt review.
2. Keep paying your plan so your existing bank debt clears.
3. Ignore adverts promising bank loans to debt-review clients.
4. Finish debt review and get your clearance certificate.
5. Then apply to a bank for credit on normal terms.

This protects your plan and your money.