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The Problem with Lead Reselling in the Debt Counselling Industry

It can be surprisingly hard to find people who are ready to sign up for debt review.

Despite the massive debt challenges most South Africans face many hesitate to make use of the amazing debt review process. Some Debt Counsellors have turned to external lead generators to try find perspective clients.

Ideally, these companies help connect people with the right Debt Counsellor. But in many cases, a single person’s information gets sold to multiple Debt Counsellors, leading to a flood of unexpected phone calls.

So, instead of feeling like they’re finally getting help, people can end up feeling overwhelmed, frustrated, and even sceptical of the whole process.

Too Many Calls, Too Little Trust

Imagine you finally decide to seek help for your debt. You fill out some online form, hoping to speak with an NCR registered professional.

But before you’ve even had time to think, your phone starts ringing. One company calls, then another, and another. Each one claims to be your best option.

For some, this level of attention might seem reassuring. After all, options are good. But for many, it’s just too much. Instead of feeling supported, they start wondering if it’s a scam. They feel pressured rather than empowered, and the trust they had in debt counselling begins to crumble before they even start the process.

Dale Johnson at 1on1 Lead Gen says: “this is common among fly by night operators who are just out for a quick buck. They offer the same leads to multiple people and do so at low prices to justify their actions”.

Debt Counsellors Lose Too

It’s not just consumers who suffer. Ultimately, Debt Counsellors do, too.

Dale says: “When a single person’s details are sold to multiple DC, it becomes a race to reach them first. But by the time some counsellors get through, they find that the potential client has already spoken to several other companies and may have lost interest altogether”.

Debt Counsellors who genuinely want to help end up wasting time and money chasing leads that no longer go anywhere. Instead of having meaningful conversations with people in need, they face scepticism from frustrated consumers who have been contacted too many times.

Privacy Problems & Data Concerns

No one likes the feeling of their personal information being passed around like a business transaction.

The Protection of Personal Information Act exists to help keep consumer data safe. But when lead generators resell personal details without clear consent as to who exactly will get the info, it raises serious concerns.

Lead Fatigue: When Too Many Options Lead to No Action

Ideally, debt counselling should feel like a clear step toward financial stability.

But when people searching for help are suddenly bombarded with choices, it can feel like too much. When too many companies reach out, the decision making process becomes confusing and people can get analysis paralysis. They end up doing nothing because of too many options and too much info.

Dale says: “Too many calls offering help or too many emails can lead to people simply ignoring any call or any message about debt relief. Lead generators can’t treat debt review like other services. They need to be sensitive to the needs of the financially stressed consumer.”

This is also known as lead fatigue, and it’s a real problem. Instead of finding the right Debt Counsellor, many potential clients shut down completely, letting their financial struggles persist simply because they’re overwhelmed.

Reselling Hurts Everyone

Debt counselling is meant to be a lifeline, but lead reselling unfortunately can turn it into an exhausting and sometimes discouraging process for consumers.

Too many calls damage trust, Debt Counsellors waste money on ineffective leads, privacy concerns cause hesitation, and lead fatigue stops people from actually getting the help they desperately need.

If debt counselling is going to remain a trusted service, there needs to be more accountability in how leads are handled—so that the people who need financial relief can actually find it.