NEWS: NCR Circular 7 is a Consumer Protection Game Changer
Industry News
Good Debt Counsellors have been concerned that some people appear to be getting tricked into debt review by people who phone them up saying that the government has a new money saving process and that they have been selected (or some version of this).
Consumers get confused and are signed up for debt review, though they are never expressly told that it is debt review they are applying for. Such consumers quickly fall out of the process and find themselves stuck with a debt review flag preventing more access to credit.
It has become a plague on the industry and has severely damaged the reputation of the whole process.
The NCR recently issued a strongly worded circular with a warning example of a practice that was doing just this (and ended up getting fined). The circular insists that Debt Counsellors get full written consent from consumers entering the process and that they clearly explain that people are signing up for debt review and what is involved.
It is hoped that this circular helps protect consumers from misleading advertising and sales pitches.
Download the Circular here: https://tinyurl.com/NCRCircular72025
