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Cape Town - The National Credit Regulator (NCR) on Tuesday cancelled the registration of two debt counsellors after successfully obtaining orders from the National Consumer Tribunal (NCT).
The debt counsellors are Liezl de Klerk and Charmaine Moonasamy, respectively practising in Clubview, Pretoria and Lenasia South, Johannesburg.
The decision follows scrutiny by the NCR into their activities and levels of compliance.An investigation into the business activities of De Klerk showed she failed to comply with the provisions of the National Credit Act (NCA), its regulations and the conditions of registration as a debt counsellor, said NCR chief operating officer Obed Tongoane.
He said the debt counsellor failed to meet the necessary requirements in a number of ways, such as not utilising the prescribed form 16 for applications for debt review by consumers, and also excluding vital information as prescribed in terms of the NCA.
Further examples of non-compliance included failure to send form 17.1 notifications within the five business days as prescribed by the NCA, and failure to submit the form 17.2 to all affected credit providers within five business days after completing an assessment, as contemplated in section 86(6) of the NCA.
In addition, De Klerk charged consumers a R75 fee to obtain a credit report, and received funds directly from consumers in contravention of her specific conditions of registration.
Tongoane said that the NCT ordered the cancellation of De Klerk's registration with immediate effect, that her conduct be declared prohibited conduct, and that the files of consumers under debt review with her be handed over to a new debt counsellor.
Moonasamy, who practised in Lenasia South, Johannesburg, but now lives in Chatsworth, Durban, lost her registration following numerous complaints.
The NCR investigation revealed that she failed to comply with the provisions of the NCA, its regulations, as well as her conditions of registration as a debt counsellor.
Moonasamy provided the NCR with false information, a criminal offence in terms of the NCA.
She was subject to an administration order as contemplated in section 74 of the Magistrate's Court Act, 1944 but when she applied to be registered as a debt counsellor, she falsely indicated that she was not under administration, said Tongoane.
She also failed to update the database designed by the NCR, in contravention of her conditions of registration, and received money directly from consumers who were under debt review with her in contravention of her specific condition of registration.
The National Consumer Tribunal ordered the cancellation of the debt counsellor's registration with immediate effect, but reserved judgment in respect of an order to refund consumers.
"This means that the NCT would hand down the judgment in respect of the refund to consumers at a later stage," said Tongoane.
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