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DCU members say NCR decision is a victory

The DCU has said that the recent change of stance by the NCR regarding the industry codes of conduct and recognition of DCASA and the NMDA shows that the banks are not infallible.

Last week the NCR gave intentions to strip several organisations of their power with regard to the proposed code of conduct for Debt Counsellors and the code of conduct to combat over indebtedness. The Debt Counsellors Association of South Africa (DCASA), the Credit Ombud, the National Debt Mediation Association (NDMA) and the Payment Distribution Agency (PDA) have been jointly dealt a mighty blow. This action is a “slap in the face” of the banks and the debt counselors association of South Africa for attempting to interfere with an industry that must remain independent.

According to the Debt Counselling Union ( DCU ), a division of the NewERA, for years the industry has been bullied by a small handful of players.

“This is heart-warming news indeed” says Scott Cundill, Chairman of the NewERA and founder of the DCU (Debt Counselling Union).“ It shows that organisations who act in bad faith towards toward the consumer can be beaten back, as can the banks themselves.”

A recent survey undertaken by the Debt Counselling Union reveals an industry in crisis. Having suffered several attacks on their credibility over the years, the majority of Debt Counsellors, who feel that they have little or no support when challenging the banks, finally have a victory they can capitalise on.

Debt Counsellors believe that this decision gives them an opportunity to claw back their much needed power. It would seem that the NCR is weeding out the bad elements who have constantly put their own profits ahead of consumers and human rights. Thanks to the NCR, and also to lobby groups such as the Debt Counselling Industry (DCI), the playing field is being leveled.

Continues Cundill: “We cannot continue to operate in a society where a small handful are allowed to bully an entire industry. Our primary task right now is to restore the reputation of Debt Counsellors.”

Statistics show that almost 60% of indebted South Africans are behind on their payments. 47% have missed at least three re-payments. The levels of debt are increasing rapidly in a country already struggling with high levels of debt. The National Credit Act gave the power to Debt Counsellors to provide these customers with relief. They should be allowed to do their job and not constantly be thwarted by other agendas and vested interests.

 

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The Debt Counselling Union report they have over 50 debt counsellors officially signed up. The NewERA also has a Constitutional case pending in the Johannesburg High Court against the all the major banks and the South African Reserve Bank (www.thebigcase.co.za). They believe that banks must relieve the pressure on consumers before they drive the country into a severe depression.

For more information, please visit www.newera.org.za.