The National Credit Regulator (NCR) every year receives at least 300 complaints from consumers who have been coerced into undergoing debt review.

NCR’s senior education officer Didi Sebothoma warned consumers to be diligent when applying for debt review.

“A consumer can apply to a debt counsellor in the prescribed manner and form to have the consumer declared over-indebted. This means that a consumer can apply for debt review by completing the prescribed form 16 or by providing the debt counsellor with the information prescribed in regulation 24(1)(b),” Sebothoma said.

She said they had a mechanism to resolve cases where customers dispute their reviews.

“Where there is proof or evidence that the consumer did not consent to debt review, or was placed under debt review despite not being over-indebted, we normally take enforcement action against the debt counsellor.

She said their complaints resolution procedure entailed obtaining relevant documentation from the consumer as well as the registrant.

“In the case of allegations of being placed under debt review without consent, our office will present the allegations to the registrant and require that he or she provide us with documentation to support his or her conduct of having placed the consumer under debt review. In other words, we will require a completed and signed Form 16 or telephone recording of the debt review application whereby the consumer discloses the information set out in regulations 24(1)(b).

“In the event that the debt counsellor provides documentation to support placing the consumer under debt review, our office will then advise the consumer that there is evidence to support the debt counsellor’s action and we will further advise them of the process to lawfully exit from debt review.”

NCR’S TIPS IF YOU ARE CONSIDERING DEBT REVIEW

• Consumers should only approach debt counsellors who are registered with the NCR, these details are on our website;
• Consumers must ensure that they understand what debt review entails before disclosing their personal details such as ID numbers, banking details, spouses details, living expenses and other financial obligations; and
• It is important that consumers do not sign any documentation which they have not read and understood.