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Online Workshop Offers NCR Insights

Recently, the NCR issued a new guideline about how they think transfers of clients between different Debt Counsellors should be handled, and they just followed up with a series of workshops.

Debt Counsellors were invited to attend the online Teams workshops and get insights into the NCR’s thinking on the matter.

During the workshop, Debt Counsellors were able to drop their credentials into the chat to be recorded as having attended.

Here are some of the main takeaways from the workshops, where on at least two occasions there were more than 160 different connections (remember: multiple people can watch on one computer).

NCR Receiving Complaints

The NCR have been dealing with complaints about Debt Counsellors who refuse to transfer clients to another Debt Counsellor for one reason or another.

Many of these complaints are coming via attorneys or legal practices.

It also seems that when there is either (1) no communication between the Debt Counsellors or (2) one party refuses to transfer, then the NCR gets cc’d into a lot of emails going back and forth on the topic.

That must be frustrating for them.

Timmy van der Grjip of the NCR noted that in many cases he has seen less than professional interactions between parties. He urged professional Debt Counsellors to communicate and perform their tasks in a professional way.

Consumer Rights

Part of the workshop focused on the NCR’s view on the consumers’ absolute right to choose who will help them.

Parts of the NCA were referenced such as Section 86 where it talks about a consumer approaching a Debt Counsellor for an official evaluation of their finances (a debt review) and the resulting findings in terms of appearing to be overindebted or not (which a court will later decide). This step can finally result in the consumer being declared over indebted and gaining all the protections of the debt restructuring process via the courts or NCT.

The NCR also have stated (in the guideline) that the consumer does not have to give reasons. It makes sense that they may want to but is not obligatory. Likewise, the Debt Counsellor could go on and ask why but it should not make a difference to the transfer process, which they would like to see executed in 7 days.

Don’t Charge More Fees

The NCR were quick to point out that when a consumer is unhappy with the work or lack of work done by a Debt Counsellor, they can move to another, and the new Debt Counsellor will receive all the records and documents and work done by the old Debt Counsellor.

Since that Debt Counsellor will have done their job, no further work should be required by the new Debt Counsellor, so they must not charge anything to help the consumer (other than ongoing after care fees).

‘so they must not charge anything to help the consumer’

Where legal fees have been paid but legal work has not happened (or not a lot of legal work has happened) the NCR are confident that the Attorneys will refund the consumer.

The implication is that new attorneys will take the money refunded and be happy to carry on the work from that point at the same rates.

There is no obligation on the previous Debt Counsellor to check if the consumer has been convinced to pay any fees by the new Debt Counsellor. Even if this is the case (against the provisions of the guideline) the original Debt Counsellor should not hold back from transferring the documents and on the NCR’s system.

7 Days

Once the Power of Attorney is received and as long as all owed, (non prescribed) fees are paid, then the transfer must happen within 7 days.

The idea is to move things along and avoid delays and stress for the consumer. 

A noble goal.

Those attending the workshop thanked the NCR and the presenter for their efforts.

While the workshop did provide a bit more clarity on the NCR’s views and their intentions, some questions arise from both the guideline and the workshop.

We will dive into this in detail in the coming issue of Debtfree Magazine.