Reading Time: < 1 minute

The National Credit Regulator ( NCT) has after several months of consultation and deliberation confirmed their withdrawal of support for the previous rendition of industry codes of conduct regarding debt counselling.

 

The National Debt Mediation Association ( NDMA) have told the press the feel hard done by. They have indicated that they did not get a chance to engage with the NCR about their decision. They also indicate that they might legally resist this decision.

The controversy regarding the codes relates to the way the proposed codes had little to do with conduct and rather attempted to set out steps in the debt review process. Most Debt Counsellors felt that only the National Credit Act should set out the necessary steps in the process.

 

In response to pressure from Debt Counsellors the NCR pulled their previous support for these codes.

 

The NDMA have also stated that they have and are continuing to assist troubled consumers with debt problems. Many Debt Counsellors feel that this is being done in contravention of the NCA. As per the NCA only a Debt Counsellor can assist restructure debt with multiple creditors.

 

It remains to be seen if the NDMA will try force their way back into the debt review process.