- Target:
- The National Credit Regulator (NCR)
- Region:
- South Africa
- Website:
- ncrservices.co.za
The Problem:
Since the inception of Debt Counselling in 2007, 4513 debt counsellors were registered and accredited by the NCR. As at December 2023, over 3000 are no longer involved in the debt counselling practice for various reasons. This has left thousands of consumers with a permanent debt review flag without a debt counsellor to render the mandatory after-care service and the ultimate removal of the debt review flag. Without a debt counsellor to monitor their debt review progress, these consumers are indefinitely stuck with a debt review flag on their credit record even when their debts have been paid in full and/or their financial circumstances have improved.
The fact that consumers who were placed under debt review by the now disfuntional debt counsellors are not much conversant with the alternative option to transfer to another debt counsellor or even log a dispute with the NCR puts many consumers in a position where they have to accept the exclusion from credit facilities as part of their lives for the rest of their lives. Untold consequenses are suffered including inability to secure financial assistance to pay for children tuition, inability to secure better employment or promotion, some divorces and suiced notion etc.
We have conducted a survey and gathered all the above facts from various consumers who express their frustrations with the impossible task of getting the burden of the debt review flag from their lives. We are prepared to submit with the petition.
Further to the above survey data, we shall log each consumer's debt review case or dispute for investigation and resolution in terms of Section 136 Regulation 50 of the NCA
The Problem:
Since the inception of Debt Counselling in 2007, 4513 debt counsellors were registered and accredited by the NCR. As at December 2023, over 3000 are no longer involved in the debt counselling practice for various reasons. This has left thousands of consumers with a permanent debt review flag without a debt counsellor to render the mandatory after-care service and the ultimate removal of the debt review flag. Without a debt counsellor to monitor your debt review progress, you are indefinitely stuck with a debt review flag on your credit record even when your debts have been paid in full and your financial circumstance have improved.
The Law:
Obligatory Debt Review After-Care:
NCR accredited Debt Counsellors are obliged to render mandatory after-care services (listed below) for the consumers that they placed under debt review. The consumer is paying R460 per month for the after-care service for the duration of the debt review term. This fee is included in your restructured monthly debt repayment.
Debt Counsellor obligatory after-care service:
Review of the consumers’ financial situation
Attend to any payment queries
Attend to the clearance process which includes securing paid up letters
Attend to the 17. W process. (withdrawal from debt counselling by the consumer)
Attending to the update of the NCR debt help system
Issue Clearance Certificate
In the light of the above, thousands of consumers have nowhere else to go and mostly they end up paying fees to 'service providers' who claim to be able to help resolve the debt review issues or clearance of the debt review flag.
It is for this reason that we sign this petition for the NCR to:
A. Establish a dedicated department to:
1. Scrutinize the entire debt counselling database to establish if every consumer listed as under debt review is assigned to an active debt counsellor
2. Run a campaing to seek and find all consumers who were placed under debt review by debt counsellor who is no longer involved in debt counselling
B. Assign a dedicated personel for each of the following categories
1. Dispute of Unlawful debt review - to peruse processing documents and verify signatures (Form 16, Form 17.2, Affidavit, ID, Account Statements, Assessment outcome, correspondence with credit providers etc
2. Incomplete debt review - peruse if all assessment steps and procedures were completed and a court order was obtained
3. Check if the Dhs Status corresponds with the credit bureau status
of disputes
4. Dissolve the abandoned and incomplete debt review and enforce removal of the flag from credit records
You can further help this campaign by sponsoring it
The Resolution of Abandoned Debt Review Consumer Issues petition to The National Credit Regulator (NCR) was written by Phara Kokozela and is in the category Consumer Affairs at GoPetition.