NEWS: NCR Make Some Big Changes

The National Credit Regulator has issued updated guidelines on how to handle “Reckless Lending” investigations (which some Debt Counsellors charge for) and has announced a new way for Debt Counsellors to update the credit bureaus about whether consumers have paid off all their debts (and get cleared from debt review).

The NCR want Debt Counsellors to check for reckless credit granted by credit providers (to consumers who did not understand the obligations, receive the right documentation or who could not afford to actually pay the debt) and credit providers can receive massive fines and lose lots of share value for such cases.

But at the same time, some credit providers complain that such investigations into their behaviour can delay them getting payments sooner in the debt review process (because of the fees involved). The new guideline is aimed at trying to strike a balance between these factors. To prevent charging when nothing is actually done but also show how best to go about such investigations.

Also, a new collaborative effort between the Credit Bureau Association and the NCR about clearance certificates is aimed at identifying any fraud by consumers, rogue counsellors or 3^rd party suppliers so that the National Prosecuting Authority can take people to court.