The Regulation of Debt Counselling Services
Since the inception of the National Credit Act in June 2007, there are many companies that offer debt counselling services. The problem is that not all of these companies are reputable. It is important to note that the Act was instituted to protect any consumer entering into a credit agreement. The act also protects against abuse from debt counsellors to the over-indebted consumer. All debt counsellors offering debt counselling services must be trained and registered with the National Credit Regulator. The National credit regulator is the watchdog and the supervisory body for the National Credit Act. It is however up to the consumer to check whether the debt counsellor is registered and reputable. If the debt counsellor is registered, the consumer can also check if any complaints have been lodged against the debt counsellor.
The Act also monitors all credit providers promoting a fair and transparent credit market. Credit providers must provide credit agreements in simple language that is easy for the consumer to understand so that all the information is clear. The agreement must include the repayment period, interest charged and any other fees that may be applicable. A credit provider can be found to have been reckless in it’s dealings with a consumer by a person offering debt counselling services. The National Credit Tribunal has been established to hear any cases pertaining to reckless credit providers.
The Act and the National Credit Regulator is also the watchdog for all credit bureaux in South Africa. Credit bureaux may only keep certain information on consumers for a certain period of time. The Act also regulates how this information is obtained and how it may be used. The information must also be accurate. Any complaints regarding incorrect information held by a credit bureau can be dealt with through the National Credit Regulator who will then pass the matter on to the National Credit Tribunal.
The Act was instituted to protect you, the consumer. Make use of all the services provided for by the National Credit Act regarding debt counselling services. For further information on registered debt counsellors and services, please contact us.
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