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Christo Bornman no longer a Debt Counsellor- Really

The SCA recently confirmed the decision taken a long time ago by the National Credit Tribunal regarding Christo Bornman. This is the latest blow for Mr Bornman who has been fighting his deregistration.

A long time ago the National Credit regulator acted against Mr Bornman due to a number of complaints by his debt review clients. They were saying that they were paying Mr Bornman and were still being harassed by creditors and in some cases having legal action taken against them. Ironically this is actually not such an uncommon thing under debt review were different departments within some large creditors are at logger heads about how to collect their debts. Often well paying clients are harassed unfairly and their Debt Counsellor or even attorneys have to take action to protect them and their assets. Sadly however in the case of Mr. Bornman’s clients it seems that many payments had not got to creditors for a while due to infrastructure and logistical and not to mention reference number difficulties. Even though these payments later got to the creditors the damage was done and the creditors were unhappy.

NCR investigates

After investigating the NCR also found that most clients matters had not been set down at court though they had been with Mr Bornman for some time. The NCR also found that Mr. Bornman had been charging a 10% collection fee. This is not an uncommon practice in some other similar industries however is not one of the guidelines as set out by the NCR (and before that the Debt Counsellors Association of South Africa). Though the Fee guidelines are not set out in law and the authority of the NCR to dictate these is still a hotly debated subject the NCR took Mr. bornman to the National Credit Tribunal to have his registration as a Debt Counsellor revoked and to try get the 10% collection fee returned to consumers.

 

The NCT – 2010

The NCT agreed with the NCR and ordered the return of the 10% and Mr Bornman’s deregistration. This despite Mr Bornman fighting tooth and nail along the way.

The High Court – 2012

Next it was off to the High Court in an effort to get the NCT decision over turned. This was not successful. The High Court agreed with the NCT. So it was then off to the Supreme Court of Appeal.

The SCA – 2013

Now the SCA has agreed with both the High Court and the NCT. You can read the judgment here: Christopher Bornman SCA ruling 2013

Has it been worth it?

The NCR originally wanted Mr Bornman to return all the money paid in fees as well as the 10% collection fee. Along the way that has changed to simply the 10% collection fee so Yes it has been worth it for Mr Bornman to fight, as far as money is concerned. What now remains to be seen is how this might effect his legal practice. The SCA judgement confirms that he can no longer practice as a Debt Counsellor.

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The NCR hope to see their powers expanded under the amended Credit Act next year to include authority to publish fee guidelines etc.Most Debt Counsellors already adhere to the NCR fee guidelines.