There are a number of developments in the Debt Counselling Industry in South Africa that might change the protection afforded to consumers under the National Credit Act od 2005. The Debt Review process itself has come under close scrutiny both the Tasks teams that were setup to promote a more harmonious process and alleviate the bottlenecks that occured ,and the National Credit Regulator(NCR) who has focused on issues like reckless lending and affordability. Issue surrounding the granishee order (Emolument attachment order) abuses have also played a pivotal role in shaping the Industry. Eugene Cilliers from Pay Plan Solutions comments that all the right structures are in place to further the industry. The NCR made it pretty clear where they intend the industry to be in the not too distant furure.

Firstly there are number of issues Debt Counsellor will need to be aware of. The compulsory use of Payment Distribution Agencies by Debt Counsellor to distribute their clients' fund to Credit Providers is not negotiable. It works in the same way as trust account do for attorney's firms or estate agents segregating the client's fund to their own protection. Responsible repayment plans with clear objectives to get the consumer out of debts are an absolute mandate for the industry.

Eugene add thats the Credit providers also have added duties and responsibilities , include more stringent affordability assessments. The R20 million fine settlement by African bank to the National Credit Regulator is probably a clear indication that these issue are not taken lightly. It is rare that a fine exceeds the capital value of the loans in question.

Eugene has highlighted that even though some clear evidence of abuses have been highlighted in the media, in his opinion, it in no way is an indicator of the general co-operation the industry has seen of late. Infact he stresses that the major lenders including ABSA, Nedbank, Standard Bank, First National Bank, Capitec , African Bank and many more of the recognisable names have all been incredibly co-operative and have made tremendous concession already in order to try and assist clients who are over-indebted and struggling to pay their bills. Under the previous task team agreements the credit providers have reduced interest rates, stripped out service fees and extended the terms of loans in order to help consumers. The fact that the National Credit Act helps consumers even with secured debt like car and home finance, is a massive feather in the cap for South Africa.

PayPlanSolutions is also registered with National Credit Regulator & DCASA (Debt Counsellor's Association of South Africa). If you have doubts or desire to inquire for quotes send us email at This email address is being protected from spambots. You need JavaScript enabled to view it. . You can too give us a call at (021)554-0708 , (086)162-6859

Pay Plan Solutions|Debt Counsellor

3 Cutter Close,

Blouberg Sands,

Capetown, South Africa 7441

http://payplansolutions.co.za