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NCR don’t want DCs to use FINSENSE

When consumers enter the debt review process they have often been having a tough time paying all their creditors regularly and equitably. The goal of debt review is to change this. To help in the process the NCR has introduced and accredited organisations called Payment Distribution Agencies or PDAs.  At present such agencies are not mentioned  in the National Credit Act. This is set to change when the DTIs proposed Amendment Bill goes through early next year.

It is possible for Debt Counsellors to approach the National Credit Tribunal to get permission to help consumers distribute their monthly payments to creditors but this has largely not been done due to the large logistical issues that arise.

FINSENSE

At present the NCR have advised consumers and Debt Counsellors not to make use of a company called Finsense to distribute their monthly payments. They have recently sent out a circular (available on their website) about the topic. The Circular said (in part):

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FINSENSE IS NOT AN NCR ACCREDITED PDA

This circular is intended to notify all registered debt counsellors that the National Credit Regulator (“the NCR”) has not accredited Finsense as a Payment Distribution Agency (PDA).

Debt counsellors are instructed not to utilise the services of Finsense for collection and distribution of debt review funds. Debt counsellors must ensure that collection and distribution of debt review funds are done by accredited PDAs only.
Failure to do so will be construed as non compliance with the following specific condition of registration:
Specific condition B (1): “The Debt counsellor may not receive payments from consumers in respect of debt obligations that were re-arranged in terms of the National Credit Act or distribute such payments to credit providers. All payments from consumers in respect of debt obligations and/ or debt counsellor fees must be received and distributed to the respective parties by a Payment Distribution Agency approved by the National Credit Regulator.”

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The NCR have to date accredited four Payment Distribution Agencies to collect and distribute funds but have since retracted the registration of one agency. This leaves 3 operating and accredited PDAs:

• National Payment Distribution Agency (NPDA);
• Hyphen Technology; and
• DC Partners.

If you would like to learn more about these PDAs you can contact them directly or via the NCR  specifically: Lebo Nembulunge, PDA Analyst on 011 554 2742 or Email: lnembulunge@ncr.org.za

Download the Circular here: NCR Circular No12-Nov-Finsense-1

Picture of NCR Circular No12-Nov-Finsense-1