Do You Have a Good Debt Counsellor?
What Makes For a Good Debt Counsellor?
There are over 1800 people registered as Debt Counsellors in South Africa.
They work at various practices across the country, and some have only been around for a few months, while others have been in the industry for years.
Who you choose to team up with for your debt review makes a big difference. They all follow the law; some are extremely good at what they do and go above and beyond.
But what actually makes a Debt Counsellor “good”?
For some people in debt review, “good” means getting a quick answer from their Debt Counsellor when they call. For others, “good” is having someone patiently explain a confusing bank statement. Some people just want things handled quietly and efficiently so they can get on with life without having to think about it too much.
All of these things are relevant, but how do you know if your Debt Counsellor is doing a good job?
Different People Want Different Things
Think about how you go about choosing a hairdresser.
Some people enjoy a long chat and catching up on all the news. Others would happily sit in silence. Both can walk out delighted, provided the haircut is good.
People also have different expectations from their Debt Counsellor.
You might appreciate regular calls and plenty of personal attention. Someone else might find all those calls and check-ins too much. You may prefer visiting an office and sitting across a desk from a real person, but your neighbour may prefer handling everything online or over the phone. Some consumers want plenty of help with planning their budget. Others want more freedom to manage their household spending within the agreed plan.
These are all reasonable preferences.
There is room for different personalities and ways of working. The important question is whether the service suits you and the essential work gets done.
Some Things Are Non-Negotiable
Before looking at the extras, let’s discuss the basics.
Your Debt Counsellor must be registered with the National Credit Regulator (NCR). You should know the name and registration number of the person responsible for your matter, even if you normally speak to other members of their support team.
Look for their NCR registration certificate in their office and their NCR sticker near the entrance. Their website should also display their registration details. You can even go and check their registration with the NCR itself on their online database.
A Debt Counsellor should have a clear physical office address and a way to visit if needed. Even if you prefer doing everything over the phone, you should know who you are dealing with and how to reach them in an emergency.
A professional website and well-maintained social media pages are also business basics. Clear information and working contact details also help. These are all good signs that you have a proper, authentic Debt Counsellor.
Then there is the money side of things.
Your Debt Counsellor will recommend a registered Payment Distribution Agent (PDA) to receive your debt repayments and distribute them to your credit providers. Your DC should not collect those repayments into their own account to pass on to your creditors. If anyone asks you for money directly this is a massive red flag. Report that to the NCR at once.
The legal side of things is also very important.
Your Debt Counsellor should arrange the appropriate court or National Consumer Tribunal process and report on its progress. This side of things will involve attorneys who will act on your behalf.
If legal fees have been paid for an attorney’s work, someone needs to make sure that work happens. Your Debt Counsellor should follow up, explain any delays and help you obtain the relevant documents. You should be able to ask where your matter stands and receive a meaningful answer swiftly.
You should also 100% understand your repayment plan, the fees involved and what is expected of you. A decent Debt Counsellor makes space for questions. You should not need a law degree to understand your own debt review.
These are the basics.
Good Debt Counsellors Pay You Attention
It is easy to be friendly and nice when someone first signs up and everything is exciting and new.
The real test comes when there is a problem of some kind. Perhaps a payment does not immediately appear on an account, or a balance looks wrong somehow. Maybe your court matter is taking longer than you expected, or your grocery budget simply no longer stretches far enough.
‘The real test comes when there is a problem of some kind’
These are reasonable things to ask about. You can and should talk to your Debt Counsellor about such things. You are allowed to ask the hard questions and expect straight answers without delay.
A good Debt Counsellor answers calls promptly or returns them when they say they will.
A good Debt Counsellor acknowledges messages. Of course, acknowledging a message is useful, but actually dealing with it is what matters.
Your Debt Counsellor may have hundreds or thousands of clients, but when your matter needs attention, you should feel heard. You should not have to explain the same problem from the beginning every time you call.
If an answer will take time, a good Debt Counsellor explains what they are checking, what to expect and when you can expect an update; they will follow through.
They should also treat you with the respect and dignity you deserve.
A Good Debt Counsellor Is Balanced
Sometimes you are going to have a complaint, question, suggestion or request and your Debt Counsellor might tell you that you can’t have your own way.
Does that mean they are a bad Debt Counsellor?
It is important to realise that a good response may still contain an answer you do not like. Even if you do not like it, your Debt Counsellor should explain the reason clearly so that you understand why the answer is the way it is.
Remember you are only part of the overall equation. The rights and needs of your credit providers also need to be taken into account. A good Debt Counsellor will challenge unreasonable demands from credit providers, but they will also tell you when something you want will not work.
‘Remember you are only part of the overall equation’
Perhaps a credit provider is pushing for a payment you cannot afford. Perhaps you want to keep spending money that your budget needs for debt repayments. Both situations require an honest conversation.
A good coach does more than cheer from the sidelines; they also have to point out what needs to change.
That firmness should come with respect, clear reasons and practical guidance.
How they handle a complaint tells you a lot.
Do they listen? Do they investigate? Do they explain what happened and what can be done? If they made a mistake, do they acknowledge it and take steps to fix it?
Recognising Good Work
Each year, the Debt Review Awards help identify excellent Debt Counsellors through an industry peer review process.
These are good Debt Counsellors, and their hard-working teams are putting in the effort to help consumers successfully get through debt review.
Much of that work happens behind the scenes: preparing proposals, resolving queries, following up on documents and keeping matters moving. The industry peer reviews consider areas such as communication, query resolution, proposal quality, timelines and court or Tribunal activity. The peer reviews also consider how Debt Counsellors balance the needs and rights of consumers and credit providers. These things make a difference long after the first consultation.
Recognition at the Debt Review Awards can be a useful sign of good work.
That said, there are many fine Debt Counsellors who do not have an award on the shelf yet. Maybe this will be their year.
The Awards happen in October each year.
For more info visit: www.debtreviewawards.co.za
Are You A Good Client?
There are two sides to this relationship.
Are you helping your Debt Counsellor help you?
Do you tell them when your income drops, or an essential expense increases? Do you speak up before a payment becomes a problem, or wait until the last minute to surprise them?
Even a good Debt Counsellor cannot help plan around a change they know nothing about.
Being a good client means making your agreed payment fully and on time. It also means communicating promptly when something threatens your ability to do so. A difficult month does not make you a bad client, but keeping quiet about it does.
‘Even a good Debt Counsellor cannot help plan around a change they know nothing about’
A good client will swiftly send the requested documents to their Debt counsellor. Carefully read the messages they receive, keep statements, payment records and important correspondence together. A simple document folder on your phone can save a lot of searching later.
Stick to your budget as best you can. If it is no longer realistic, a good client will ask for help. Look for sensible ways to lower your expenses or increase income where possible.
A good client will be careful with callers who pressure you to change bank details, cancel your debt review or sign up for something you do not understand. Hang up on suspicious calls and check with your Debt Counsellor via their official contact details. Forward collection messages and any formal legal notices promptly so they can be assessed by your Debt Counsellor.
Good Debt Counsellors & Good Clients
Debt review works best when both parties communicate and do their part.
There is plenty of room for individual preferences among Debt Counsellors. Some are warm and chatty, others are quieter and more businesslike. Each will have strengths and areas where they can improve.
Every client should experience a Debt Counsellor who is competent, diligent, responsible, communicates well, and is NCR registered.
A good Debt Counsellor deserves a good client who works with them.
And every good client deserves a good Debt Counsellor who does the work.
