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NCR Step Back From Transfer Process

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NCRDebtHelp Revamped To Allow For Faster Client Transfers

Due to, what can only be called, “popular demand” the National Credit Regulator (NCR) has made system improvements to their NCR Debt Help online system which now allows Debt Counsellors to transfer consumers between themselves without having to wait on the NCR to do so manually.

The Consumer Protection Act (CPA) allows consumers to choose their service providers and not be locked into dealing with firms or service providers they no longer wish to do business with. No more being locked into long contracts for services you no longer want to use.

Debt Counselling is an unusual service since it is actually a legal process and the Debt Counsellor involved merely informs the court of a suggested repayment plan (and what everyone thinks of that plan). Courts restructure debt while the Debt Counsellor offers counselling services to the consumer.

‘what happens when a consumer wants to change service provider…?’

But what happens when a consumer wants to change service provider (like switching from Vodacom to MTN or Cell C to Virgin Mobile etc)? In such a case the new Debt Counsellor and old Debt COunsellor need to facilitate the change.

The NCR has an online database of consumers and the status of each consumers debt review application (from start to finish). This information needs to be adjusted when a transfer happens.

Initially, the programme designers and NCR never expected consumers to want to make changes or that Debt Counsellors would die and their clients would need to be moved etc. Thus, the function of moving consumers records from being with one Debt Counsellor to another was not a major programme feature and was restricted to background access by the NCR themselves.

As a result, transfers had to be done via emails with spreadsheets and telephone calls and…well, the system broke down under the sheer workload that those tasked with this assignment at the NCR faced. They found themselves swamped under thousands of requests on an ongoing basis.

After many requests from Debt Counsellors (and no doubt internal staff requests at the NCR), the NCR and their developers have now opened the transfer system to the front end users and the process will now, for the most part, be done by the users themselves (Debt Counsellors)

This process will kick in from Monday the 20th of August.

Please note that the old: email address will now be shut down.


Why Transfers Are Needed

Here are a few quick (and crazy) scenarios where a transfer might be needed.

Scenario One

Debt Counsellor A decides to stop being a Debt Counsellor and hands their clients over to their business partner (Debt Counsellor B) or colleague.

Scenario Two

The consumer is unsatisfied with the after care service they receive from Debt Counsellor A and want to transfer to Debt Counsellor B.

Scenario Three

Debt Counsellor A sells on some of his ‘book’ to Debt Counsellor B for capacity or financial reasons.

Scenario Four

The NCR like to see that only Debt Counsellors deal with the debt counselling functions of an application. A company may have dozens of Debt Counsellors handling a single consumers matter over time. Many Debt Review last 5 years and staff turn over might be a factor in their business. The company may decide to move the consumer across to the next Debt Counsellor handling the matter, for their particular function, in an effort to stick to the NCRs guidelines (ridiculous and seldom done for simplicity’s sake, as tracking this on a Form 42 is painful and confusing to everyone).

Scenario Five

Since Credit Providers need to send the right Debt Counsellor and the NCR and Consumer a “termination letter” some Debt Counsellors have done frequent transfers internally in their company to avoid a Credit Provider ever serving the termination letter on the right Debt Counsellor (silly but legally effective trickery since the NCA only recognises individuals and not companies).

Scenario Six

Debt Counsellor A goes on a  year long sabbatical and Counsellor B needs to render assistance to the consumer during this time… before transferring the consumer back to the original Debt Counsellor A upon their return.


Download the Circular From The NCR

You can download the NCR Circular on the new functionality of the system here:

DHS Automated transfers circular -1


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