Debt Counsellors Shaping Up For a Legal Battle With the NCR Over Reckless Lending Fee
The National Credit Regulator (NCR) recently announced that they were going to be recalling one of their suggested debt review fees which they feel Debt Counsellors can charge consumers to investigate reckless credit (credit consumers couldn’t afford, illegal credit agreements, where consumers didn’t get all the paperwork, where consumers didn’t understand the obligations etc).
The NCR then called on Debt Counsellors and others to make comments about their plan in a short time period. The Debt Counsellors Association of South Africa (DCASA) asked the NCR for an extension so that more interested parties could make more detailed comments but this was not allowed. Various Debt Counsellors and industry parties such as DCASA and the National Debt Counsellors Association rushed to make comments on the proposed recall of the fee within the time limit.
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It appears that the NCR is very determined to withdraw the fee and now it looks as if they may face pushback from Debt Counsellors. The Debt Counsellors Association of South Africa (DCASA) has begun calling on members to contribute towards a legal fund in order to take legal action over the topic. The National Debt Counsellors Association which represents most of the largest debt counselling firms in South Africa has also indicated that they will be working with other Debt Counsellors, including DCASA, to take this matter further.
