NCT Issue Letter Regarding Hearing Debt Review Matters
Industry News
The National Consumer Tribunal has recently issued a letter to encourage Debt Counsellors to continue to submit 86(7)b consent orders to the NCT.
Consent Orders Via the NCT
In the case where a consumer is experiencing debt problems or is likely to experience debt problems and will become over indebted if nothing is done, then all the consumers credit providers can agree to make arrangements to reduce debt repayments and obligations to enable to consumer to make a new (lower) installment each month.
As per the National Credit Act Section 86, this can be done with help from a Debt Counsellor and can be presented to the NCT in the form of a draft consent order.
Recently, some ‘get out of debt review’ services (a woefully unregulated part of the industry that has quite a bad reputation) have been taking on matters that went via the NCT and asking that the judgements be set aside.
Read More: Check out this ruling from the NCT about such matters.
Due to a ruling by one of the NCT tribunals there has now been a bit of a furor in the industry over such matters as Debt Counsellors and consumers are left wondering if they should or shouldn’t be submitting matters to the NCT.
The NCT Seem To Think so
The NCT have issued this letter saying that they are still willing and able to do so (but the letter is light on reasoning on the subject).
Read the PDF now:
NCT letter Regarding recent ruling on over indebtedness (June 2023)
