DCASA W Cape Expo – Afternoon session
Jackie Coetzee (DCASA) discussed Credit Bureau reports and called on Experian to explain a bit more about how the information is captured and how long certain statuses (flags) remain showing on the reports. If a person is under debt review this status is shown on their report. When a consumer leaves review the status will be removed.
Consumers can check their bureau report for free once a year (normally in the month of their birth).
Sean Hefferman (Attorney) spoke about what happens when a bank hands an account to an attorney. They advised DCs to try sort matters out before taking it to court.
They said that in the past many people qualified (as DCs) that were not professional (some in the audience disagreed with this). He stated that this has now changed. Especially where DCs have made use of the DCRS system.
The banks now don’t want to go to court (as they had in the past) if they can avoid it.
The speaker discussed how he had personally experienced a matter where a firm of Attorneys (representing a Credit Provider) had been given free reign to fight any reckless credit application and had no budget or limit to funds that can be spent to defend the matter. He advised DCs that should they take on a reckless credit matter they should be aware that the CPs will oppose it and must be confident of the merits of the case.
The NCT (National Credit Tribunal) was discussed. The cost and time benefits were highlighted. They feel that the NCT will soon receive even more powers to assist in debt review related matters. At present they can only hear consent matters (matters where a consumer will soon become over indebted). The NCT can also compel statements and CoBs from creditors who are not cooperating.
Rougier vs Nedbank
This is a Court judgment which states that a Debt Counsellor cannot withdraw from Debt Review.
In this matter the consumer (Rougier) had not cooperated with the Debt Counsellor and the DC had terminated the review at some point in the past.
The High Court of Appeal stated (in Paragraph 6 of the judgement) that a DC may not withdraw from the process as the NCA does not empower them to do so.
The court did allow for the credit providers to send an section 86(10) notice to withdraw from the debt review.
A lively discussion followed and it was discussed that a Debt Counsellors Act might solve many such issues.
The day was a great success and we look forward to the next DCASA EXPO in the region.