NCR Workshop: DC Transfers Worry Regulator

NCR Workshop Highlights: DC Transfers

Consumers have the right under the Consumer Protection Act to change service providers and though it is not a good idea they are also able to transfer between Debt Counsellors under debt review.  Such a change may be necessary should a Debt Counsellor die or their business ‘go under’. This then allows consumers to continue to enjoy the services of a registered Debt Counsellor. The NCR say however that they are seeing many many thousands of transfers happening each month and they are struggling to keep up.

During the recent National Credit Regulator (NCR) workshop, the NCR revealed that members of staff from various departments had to stop their regular work and all concentrate of assisting with the transfer process (on the NCR Debt Help website). At a point in Septemeber 2016 there was a backlog of 9000 transfers waiting to be done. The small team handling these transfers was overwhelmed and help was needed. The assistance of many members of NCR staff helped drop that backlog from 9000 down to less than 2000 consumers needing to be moved to a new Debt Counsellor on their system.

From 2000 Behind to 9000 Cases Waiting

Once the extra help stopped however, the numbers began to grow again and is once again up near 9000 names waiting to be moved from one Debt Counsellor on the NCR system to another. This makes it difficult for this team to do other needed things on the system.

The NCR asked the audience why they thought so many people were moving from one Debt Counsellor’s services to another’s. There were a variety of answers including that some consumers were fickle and moved to another counsellor at the first sign of any hiccup. Some in the audience pointed out that some consumers had received poor service from some firms and that they then had a right and genuine need to change. Others pointed out that many larger firms were buying over the ‘book’ of smaller firms calling for many consumers to change their Debt Counsellor of record.

Others said it was due to competition between firms. With some Debt Counselling firms even offering the consumer lower debt repayments if they switch their debt review to them. The audience did not condone this since it would theoretically not be possible for one firm to reduce payments compared to another since it was just a case of maths as to what was available based on the consumer’s income vs expenses. That is unless the new firm was willing to add extra items into the consumer’s budget and were then able convince the courts to lower the repayment amount (not very likely or very easy).

Also discussed was when consumers who have been in the process before are need to apply again and the system struggles with this issue.

Getting Computers and Debt Counsellors To Do more Of the Work

The NCR confirmed that they are trying to move much of the process onto an automated system and hope to soon run the system where the Debt Counsellors using the system will be doing more of the data capturing aspect when making these transfer requests. They hope this will speed things along and lessen their workload. Whereas usually, if you tell busy Debt Counsellors they might have to do more work you would get lots of complaints, the audience did not seem to object which just goes to show how much of a problem these slow transfers have become.

‘a rather funny discussion ensued between Debt Counsellor John Steyn and the NCR’

Where the other Debt Counsellor (who the consumer has asked to be transferred from) is not contactable the NCR asked that the new Debt Counsellor provide some evidence of having tried to contact the previous Debt Counsellor, as they are worried that some may claim they have tried to reach the previous Debt Counsellor when they have not. Then a rather funny discussion ensued between Debt Counsellor John Steyn and the NCR about the NCR’s contact Database which has a reputation for being incorrect or outdated. The Debt Counsellor offered to bring a few members of staff and help the NCR out. They laughed and said they may take him up on the offer as they were aware there were problems with the database.

The NCR asked Debt Counsellors to be patient as they had made a choice to work alphabetically rather than in order of date and this had delayed some consumers transfers by a great deal. They also said they struggled to go through all the requests since Debt Counsellors who had been waiting a long time began to send follow up emails and this crowded the inbox. They are trying to address these issues but asked Debt Counsellors to please not flood them with follow-up requests via email.

The issue remains regardless of the cause and the NCR acknowledge that there are problems. They hope to roll out solutions in the near future and will just muddle along for now hoping that Debt Counsellors will not flood them with follow up correspondence as they do so.