Debt Counselling Fee Review Postponed
The National Credit Regulator (NCR) recently announced at the Debt Counsellors Association of South Africa annual conference that they were busy with a review of the fees Debt Counsellors charge for debt review. The NCR have issued guidelines about the fees that they want Debt Counsellors to charge in the past. The fees have been adjusted once sine the process began back in 2007 and Debt Counsellors are pushing for the NCR to once again adjust the fees in line with how the industry has changed. Most Debt Counsellors now make 1/3rd less than they did in 2009 as the industry has become more and more labour intensive and complicated. Consultants working for Debt Counsellors are now also earning less on average. Some argue that this means that consumers could be getting less professional service and is an area of concern.
Hopes & Dreams Crushed
The NCR announcement at the DCASA conference mentioned that the NCR had put out to tender the process of reviewing and reporting on the fees. There was talk that a service provider had been chosen through the tender process. This caused a lot of joy across the industry. The NCR have now crushed that joy as they have announced that they have run out of money for this project this year and are shutting it down till they get some more funding.