The National Credit Act and Debt Counselling
Over 4 million South Africans have unfavourable credit records. The government of South Africa recently instituted the National Credit Act which allows every person, regardless of income or indebtedness, to apply for debt counselling. Debt counselling is a debt review process whereby consumers who find themselves in a position where they cannot meet their monthly obligations to creditors can find some relief. A debt counsellor is authorised to negotiate lower repayments with various credit providers and inform said creditors that the consumer is under debt counselling. While in this process, creditors cannot institute legal action against the consumer. The debt counsellor can also provide additional services such as debt consolidation or intercede with the Magistrates Court on behalf of the consumer. This puts the counsellor in a position where he/she must adhere to certain regulations and standards to provide the best advice for the consumer.
Thus the act provides for the training, testing and registration of all debt counsellors. All persons providing the service of debt counselling must be registered with the National Credit Regulator who is the supervisory body for the National Credit Act. It is up to the consumer to ensure that the debt review counsellor is registered and has received the correct training. The National Credit Act was instituted to protect consumers entering into a credit agreement and to enforce regulations upon credit institutions.
The act and the regulator are also in charge of regulating the various credit bureaus in South Africa. This provides the consumer with protection of their credit information and free access to the information held by the credit bureaus. If you have been erroneously listed with a credit bureau, the regulator can compel the credit Bureau in question to correct the inaccuracy. The National credit regulator also deals with all complaints regarding the credit industry, whether these are complaints directed at credit institutions, credit bureaus or debt counsellors.
Make use of all the benefits that the National Credit Act and the National Credit Regulator have provided regarding debt counselling Johannesburg and all credit institutions. For further information on debt review services and counselling, please contact us.
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