When a consumer's debt review is completed, creditors have the right to take legal action to enforce a credit agreement that was previously subject to debt review. This usually involves asking the consumer to settle any arrears that have accumulated on the account and return to the original terms of the agreement. Debt review is a process that helps consumers who are struggling with debt. It is a legally binding agreement between the consumer and their creditors, which allows them to pay off their debt in an affordable way.
The process is overseen by a debt counsellor, who will negotiate with creditors on behalf of the consumer. Once the debt review process is complete, the consumer's credit record will be updated to show that they have successfully completed the process. This will help them to rebuild their credit score and access credit in the future. However, it is important to note that once debt review is terminated, creditors have the right to take legal action against the consumer if they fail to meet their obligations.
This could include taking them to court or repossessing any assets they may have used as security for a loan. It is therefore important for consumers to ensure that they keep up with their payments after debt review has been terminated. This will help them to avoid any legal action being taken against them and ensure that they can continue to rebuild their credit score.
