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AllProDC happy that code of conduct has been scrapped

 

The Alliance of Professional Debt Counsellors ( AllProDC ) say that they praise the decision by the National Credit Regulator (NCR) to withdraw it’s support for the so called Debt Counselling and Credit Provider Codes of Conduct.

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Last week the NCR, after extensive review, decided to recant it’s earlier support for proposed codes of conduct which introduced requirements for Debt Counsellors and creditors that went contrary to the National Credit Act (NCA).

Simon Barkenhuizen elected president of the AllProDC National Executive Committee says: “We feel this is a great victory for our members who have taken a strong stand against the proposed code since they were first published”. Barkenhuisen says:” For over a year our members have been saying they do not want to go contrary to the Act and sign these codes which were a thinly veiled attempt at circumventing important parts of the NCA”.

Some are concerned that this withdrawal of support for these codes could see creditors return to more draconian anti-consumer measures and make life more difficult for consumers. However the NCR have pointed out that, while these codes have been in place, more and more South African consumers have become over indebted. Barkenhuizen says consumers are “worse off now than when these codes were first proposed”. “It has not stopped banks from going and trying to reposes peoples homes and cars even when consumers are paying toward these each month through debt review”.

He says: ” It is our hope that credit providers will see this as a call to stick to the Act and to really help consumers by supporting debt review. Our members are committed to behaving in an ethical and professional manner”. AllProDC are confident that, since debt review is the cheapest form of debt collection for creditors, many of the steps taken by creditors to improve their cooperation with debt review will remain in place even if the code does not.

Debt review has helped hundreds of thousands of consumers since it’s inception and the process is clearly defined in the Act and regulations. Debt Counsellor John Steyn, a member of AllProDC, says: “If you are experiencing financial strain talk to a professional Debt Counsellor sooner rather than later. Acting quickly contributes to the success of your debt review”. “When Debt Counsellors stick closely to the Act the process is very successful.”

Barkenhuizen concludes:” We are happy the NCR now agree with us and have withdrawn their support for these so called industry codes of conduct”. This is a victory for Debt Counsellors and consumers alike.