• The power of perseverance

    True grit is a reliable predictor of who will achieve success in life, says Ian Mann.

  • It's the system

    The system sucks and it’s being used far too often as an excuse, says Mandi Smallhorne.

  • Web of dependency

    Zupta defenders are playing cat and mouse with ratings agencies, says Solly Moeng.

All data is delayed
Loading...
See More

New system to standardise debt review

Aug 24 2011 13:34
Sapa

Johannesburg - The National Credit Regulator (NCR) has introduced a new system to standardise the way debt counsellors assess over-indebted consumers, it said on Wednesday.

"The Debt Counselling Rules System (DCRS) aims to address concerns of inconsistency in the way debt review proposals are determined and improve the solve rate of proposals through consent agreements," the NCR said in a statement.

The NCR set up a task team to look at bottle-necks in the debt review process and it found that inconsistencies in the programmes used by debt counsellors to come up with debt review proposals were a problem.

The National Credit Act provides for over-indebted consumers to use a debt counsellor to apply to restructure their repayments to their creditors.

If accepted by credit providers, then the consumer's most valuable assets will be protected from repossession.

"In the past, there was no standardisation in the way proposals were drawn up and cases would often end up in court with obvious negative consequences for both consumers and credit providers," said Ismail Kharwa, acting debt counselling manager at the NCR.

The rules in the system relate to different formulas used by debt counsellors to see whether a consumer can be rehabilitated.

Debt counsellors do not have to use the system and credit providers do not have to accept debt review proposals that have been approved through the DCRS.

However, it would make it much simpler for credit providers to assess applications. 

ncr  |  debt counselling

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE DEBT ISSUE

Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Would you take out a payday loan?

Previous results · Suggest a vote

Loading...