DCASA Warn Consumers
The Debt Counsellors Association of South Africa (DCASA) has urged consumers to avoid been taken in by scams from unscrupulous people who pretend they can get consumer’s debt review status removed for a fee.
In a document being circulated by South Africa’s biggest and oldest Debt Counsellor association, they urge consumers to watch out for scammers who ignore court rulings on the topic of leaving debt review.
‘avoid been taken in by scams from unscrupulous people who pretend they can get consumer’s debt review status removed’
It is possible for a consumer to enter debt review and then drop out of the program early. What then happens is the consumer is unable to gain access to new credit, not because they can’t afford it but because the credit bureaus leave a listing about the debt review in place. The credit bureaus have been told by the National Credit Regulator to leave this listing in place unless a Debt Counsellor can prove to them that all the consumer’s debts (with the exception of a home loan) have been paid off.
Since credit providers are too scared to offer new credit to people with this listing on the credit reports it effectively cuts consumers off from getting new credit until they settle their debts.
People who quit debt review or fall out of debt review before paying off their debts quickly find themselves back in the trouble they were in the first place and that can be a scary place.
Below you can see the warning that DCASA have issued and how it mentions a recent court case (covered in last month’s Debtfree Magazine) that gave added clarity on the matter. Consumers are urged not to pay money to people to try get out of debt review or remove their debt review status since they will not get their money’s worth.