NCR Looking At Debt Counselling Fees Again
Debt Counselling Fees Under Review
The National Credit Regulator (NCR) organises an industry think tank called CIF (the Credit Industry Forum). The CIF often discuss issues related to the debt counselling industry and make suggestions to the NCR on how these might be addressed (particularly if they are not addressed by the National Credit Act or Regulations).
One topic that the National Credit Act and regulations have been noticeably silent on (other than a reference to R50) is the fees consumers or credit providers should pay for the debt counselling process.
Over the years, various parties have suggested different industry pricing guidelines (including the NCR themselves). As the industry develops and some aspects of the process are better understood (or start to receive a lot more attention) the different guidelines have been adjusted to match the current processes commonly used for debt review.
‘Over the years various parties have suggested different pricing guidelines’
While these are not binding most Debt Counsellors and credit providers stick close to the guidelines issued. Almost no Attorneys, however, follow these guidelines, since they do not fall under the authority of the NCR in any way and as a profession, they are not in the habit of doing work without being paid upfront or having getting paid be dependant on the particular outcome of the case.
New CIF Subcommittee
The NCR has now asked members of the CIF to form a subcommittee to start to discuss the current debt counselling fee structure. The process is in its early days and the NCR has said they will follow a process similar to how they made, some would say, sweeping changes in 2018 (which saw new fees been added and fee caps raised).
‘The NCR has now asked members of the CIF to form a subcommittee to start to discuss the current debt counselling fee structure’
The NCR has also said that they will be sure to keep the industry informed and if they follow the 2018 process ask the industry for comments once the subcommittee has come up with a new proposal for fees.
For more information about this topic be sure to read this month’s issue of Debtfree Magazine.