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Debt counselling in disarray

Dec 09 2009 10:19 Nellie Brand-Jonker

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Cape Town - The National Credit Regulator has appointed a task team to come up with solutions to problems being experienced with the debt review process.

Gabriel Davel, CEO of the National Credit Regulator, said it is essential to resolve the bottleneck in the debt-counselling process.

According to him, 130 000 people have so far applied for debt counselling. An average of 9 000 applications are received each month.

Of the applications received, only 5% have so far been dealt with by the courts.

Davel said that applications would probably increase in the coming months.

He said firm action was needed to bring the situation under control.

An urgent interim solution needs to be found, while changes to the legislation are awaited.

Neville Melville, an advocate, former bank ombudsman and expert in dispute resolution, has been appointed chairperson of the task team.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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