INTRODUCING THE ALTERNATIVE DEBT REVIEW AFTER-CARE SERVICE

The Problem:
Since the inception of Debt Counselling in 2007, 4513 debt counsellors were registered and accredited by the NCR. As at December 2023, over 3000 are no longer involved in the debt counselling practice for various reasons. This has left thousands of consumers with a permanent debt review flag without a debt counsellor to render the mandatory after-care service and the ultimate removal of the debt review flag. Without a debt counsellor to monitor your debt review progress, you are indefinitely stuck with a debt review flag on your credit record even when your debts have been paid in full and your financial circumstance have improved.

Debt Counsellor mandatory service:
NCR accredited Debt Counsellors are obliged to render mandatory after-care services (listed below) for the consumers that they placed under debt review. The consumer is paying R460 per month for the after-care service for the duration of the debt review term. This fee is included in your restructured monthly debt repayment.

Debt Counsellor obligations:
Review of the consumers’ financial situation
Attend to any payment queries
Attend to the clearance process which includes securing paid up letters
Attend to the 17. W process. (withdrawal from debt counselling by the consumer)
Attending to the update of the NCR debt help system
Issue Clearance Certificate

The Solution:
In terms of the NCA Section 136 Regulation 56, a consumer can appoint a third party to log a dispute and/or enforce their rights under the debt review system.
Where the debt counsellor is not available or neglects the mandatory after-care obligations, the third party can undertake the after-care role and/or log a complaint with the NCR to enforce the after-care obligations

NCRA has launched an Alternative After-Care Service to accommodate the abandoned consumers to ensure that they are released from debt review as and when they become eligible. The after-care service includes dispute and removal of the debt review flag for consumers who have been unlawfully placed or are stuck under debt review.

Alternative After-Care Services Benefits:
Establish details of the Debt Counsellor on record (Free Credit Report)
Establish the status of Debt Counsellor on record (Active/Inactive)
Clearance of Debt Review Flag
Issuance of Clearance Certificate
Debt Repayment Monitor(how much you have paid through the Pda, and your outstanding balance)
Settlement of outstanding (debt review) accounts
Investigation of Unprofessional Conduct by Debt Counsellor
Investigation and Dispute of Unlawful Debt Review (documentation, processes and procedures)
Recovery of unlawfully collected fees