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Industry News

The MFSA recently held a member engagement session to discuss pressing issues within the debt counselling space.

As the representative body for a large number of microfinance credit providers (many of whom specialise in short-term credit) MFSA remains committed to ensuring that debt counselling functions as an effective mechanism for consumer rehabilitation.

The session aimed to keep members informed of developments in the debt review industry. Members have called for an industry-wide information session with leading debt counsellors, possibly through the main DC associations, to foster improved cooperation.

However, concerns were raised regarding the conduct of a few rogue players in the industry, echoing sentiments recently shared by both DCASA and NDCA. These actors appear to prioritise volume over quality and undermine the credibility of the debt review process.

MFSA CEO Leonie van Pletzen stated: “Our members are committed to working with debt counsellors, not against them, to strengthen the integrity and effectiveness of the system. We believe that open dialogue and mutual accountability are essential for ensuring the process serves both consumers and credit providers fairly.”

The session was well received, and MFSA members look forward to more engagement and collaboration with the debt counselling sector.