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NCR DHS Update Changes Surprise Credit Bureaus

Some credit bureaus left scrambling to catch up as NCR changes their mind about what Debt Counsellors can and cannot update.

The NCR recently decided to screen all Debt Counsellors’ work step by step during the process and to then update the progress on their Debt Help System (DHS). The system is used in part to update credit bureaus about the status of a consumer’s debt review.

For example, it can record that someone has applied for debt review (when the credit report listing is added) or later that someone has completed their debt review (when the credit report listing is removed).

After some backlogs began to appear, as the NCR struggled to keep up with the massive influx of emails from Debt Counsellors, consumers began to complain that they were being held back from accessing new credit after the process. This lead to a decision that the NCR would once again allow Debt Counsellors to update this information (regarding clearance certificates) on the DHS system.

The NCR has always also asked Debt Counsellors to contact some of the larger credit bureaus directly (perhaps out of concern that the information would not be sent from the DHS system to the credit bureaus timeously?).

In the most recent circular on the topic Debt Counsellors were asked to let the credit bureaus know when they were issuing clearance certificates for consumers. The Debt Counsellors also send proof of the consumer having paid up their debts (even though this is not mentioned in the Act).

With the sudden change back to the old way of doing things it seems some of the credit bureaus have not caught up and are sending replies to Debt Counsellors saying that they still ‘no longer process requests from the debt Counsellors‘ and directing the Debt Counsellors to ‘please contact the NCR for more info’.

Debt Counsellors and Debt Counsellors’ Association representatives have reached out to the credit bureaus and the NCR to try to ensure that the credit bureaus are informed of the reversal of the previous instructions from the NCR.

Its a little chaotic.