DCASA Pushing For Clearer & Easier Debt Review
DCASA Call For Credit Reform
Debt Counsellors belonging to DCASA are asking government to make credit laws clearer and fairer for the people they serve.
The Debt Counsellors Association of South Africa (DCASA) have published a public appeal to government that focuses on how too many consumers are getting stuck in the limbo instead of finding the actual financial relief they need.
For many families, debt review has been a lifeline. It has helped them deal with overwhelming debt and keep their homes, cars and dignity intact.
But DCASA warns that some of the rules about debt review are too confusing and in some cases, even leave consumers trapped.
One big concern is that some people who have dropped out of debt review (for a variety of reasons) are still flagged at the credit bureaus as if they were actually in the process. That flag blocks them from moving forward and dealing with credit providers who might actually want to assist them.
DCASA is calling for changes that will help people, not just the credit industry.
DCASA also want to see more types of debts (even small bills and agreements that currently fall outside the National Credit Act’s scope) included in debt restructuring plans.
‘They also want clearer rules on when someone can exit debt review’
They also want clearer rules on when someone can exit debt review, and easier ways for people to do so, so that people are not left hanging for years, unable to access credit (if they could realistically afford to do so).
Another key change called for, that all Debt Counsellors would like to see, is that debt review payments should show as a positive sign of responsibility on credit reports, not a black mark.
These proposed changes will not only help current consumers but also protect new clients from bad actors.
Some so called “churn mill” Debt Counsellors unfortunately, mislead people with big promises, then fail to deliver real help and leave consumers worse off or even charge them to leave the process.
‘stricter professional registration will make it harder for lazy or unscrupulous players to take advantage’
DCASA says tougher rules, higher fines and stricter professional registration will make it harder for lazy or unscrupulous players to take advantage of desperate families.
They want to ensure the industry sticks to the highest standards while helping consumers.
A Public Call
With consumers facing so many challenges and with debt review being such a good solution, Debt Counsellors are fighting to make the system work better for the people who trust them.
Easier, clearer rules will mean faster relief, fewer traps and a chance for consumers to get back on their feet and rejoin the economy with hope.
DCASA has now been sharing this public call to governement to look at these matters urgently and see what can be done to assist more consumers.
