Alternative Dispute Resolution Identified at NCR Workshop
At the recent National Credit Regulator (NCR) Workshop with credit providers and Debt Counsellors the topic of Debt Mediation came eup. This is a type of unregulated debt counselling where the person offering the service is not registered with the NCR. The matters also never go to court to offer the consumer legal protection. Many of these operations are outright scams designed to fleece consumers of their money. As a result, the NCR and Debt Counsellors are very against such scams and abuses.
‘owing someone money is not a dispute’
Part of the problem is that these so called ‘Debt Mediators’ have been trying to hide under the banner of Alternative Dispute Resolution Agents (ADRAs). This is a provision in the National Credit Act (NCA) which allows for consumers to make use of the registered services of someone who will help them with a specific type of dispute.
As the NCR said on the day: “owing someone money is not a dispute“.
There is still, however, some confusion about what exactly an ARDA will do. The NCR revealed that they have 4 registrants as ADRAs at present. They then also helped give clarity on the topic by displaying what a dispute relating to a credit agreement actually may be (see pic) and what it definitely is not (namely an excuse for unregistered debt review).