FREQUENTLY ASKED QUESTIONS

  1. WHAT IS THE NATIONAL CREDIT ACT (NCA)?
  2. WHAT IS DEBT COUNSELLING?
  3. HOW CAN A DEBT COUNSELLOR HELP YOU?
  4. CAN A DEBT COUSELLOR HELP ME IF I HAD LOANS OR CREDIT AGREEMENTS PRIOR TO 1 JUNE 2007?
  5. WILL MY FINANCIAL AFFAIRS BE TREATED CONFIDENTIALLY?
  6. CAN A DEBT COUNSELLOR HELP ME IF I ALREADY HAVE JUDGEMENTS AGAINST ME?
  7. CAN I CONTINUE TO APPLY FOR CREDIT OR USE MY EXISTING CREDIT AND STORE CARDS?
  8. WILL CREDITORS CONTINUE PURSUING ME FOR THE PAYMENTS?
  9. WILL THE DEBT RE-ARRANGEMENT COVER ALL MY DEBTS?
  10. WILL MY CREDIT PROVIDERS ACCEPT PAYMENTS LOWER THAN WHAT I HAVE CURRENTLY BEEN OBLIGED TO PAY?
  11. HOW LONG WILL IT TAKE TO SETTLE MY DEBTS?
  12. WHAT HAPPENS IF MY CIRCUMSTANCES CHANGE?
  13. WHEN CAN I TAKE ADVANTAGE OF DEBT COUNSELLING?
  14. HOW DO I APPLY FOR DEBT COUNSELLING SERVICES?
  15. AM I CHARGED FOR YOUR SERVICES?

     

1. WHAT IS THE NATIONAL CREDIT ACT (NCA)? - ( BACK TO TOP )


It is an act that became effective in law in June 2007…

"To promote a fair and non-discriminatory marketplace for access to consumer credit and for that purpose to provide for the general regulation of consumer credit and improved standards of consumer information; to promote black economic empowerment and ownership within the consumer credit industry; to prohibit certain unfair credit and credit-marketing practices; to promote responsible credit granting and use and for that purpose to prohibit reckless credit granting; to provide for debt re-organisation in cases of over-indebtedness; to regulate credit information; to provide for registration of credit bureaux, credit providers and debt counselling services; to establish national norms and standards relating to consumer credit; to promote a consistent enforcement framework relating to consumer credit; to establish the National Credit Regulator and the National Consumer Tribunal, to repeal the Usury Act, 1968 and the Credit Agreements Act, 1980; and to provide for related incidental matters."

The National Credit Act is there to protect Consumers rights by :
  • Controlling the Cost of Credit
  • Preventing consumers over committing themselves financially
  • Preventing reckless credit practices
  • Preventing exploitation by Credit Providers and Debt Collectors
  • HELPING consumers manage their debt responsibly by prescribing assistance to consumers who are OVER COMMITTED FINANCIALLY.

2. WHAT IS DEBT COUNSELLING? - ( BACK TO TOP )

  • Debt counselling is an intervention mechanism for over indebted consumers.
  • A consumer can seek the assistance of a debt counsellor on his/her own accord or can be referred to one by a court or by the National Credit Regulator.
  • The main purpose of a Debt Counsellor is to:
    • act as a mediator between credit providers and indebted consumers.
    • assess a Consumers state of indebtedness.
    • facilitate debt re-arrangement with Credit Providers.
    • make recommendations to Credit Providers and/or Magistrates Court on behalf of over indebted consumers.

3. HOW CAN A DEBT COUNSELLOR HELP YOU? - ( BACK TO TOP )


We can help by;
  1. Making a proposal, on your behalf to all your Credit Providers on how your debt repayments can be structured in order to achieve a manageable level based on your income and expenditure.
  2. Referring matters to the Magistrates Court when Credit Providers are not prepared to accept the Debt Counsellors proposal, ensuring via Court Order that the Credit Provider acts appropriately.
  3. Advising Credit Bureau's to list you as having applied for debt review thereby ensuring that judgement is not taken against you in respect of current indebtedness provided that you adhere to your repayment arrangements.
NOTE : If a credit agreement is declared Reckless then certain obligations by the borrower may be suspended or terminated by the courts.

4. CAN A DEBT COUSELLOR HELP ME IF I HAD LOANS OR CREDIT AGREEMENTS PRIOR TO 1 JUNE 2007? - ( BACK TO TOP )


YES! It is your financial situation TODAY that is taken into account.

5. WILL MY FINANCIAL AFFAIRS BE TREATED CONFIDENTIALLY? - ( BACK TO TOP )


Other than the advices required by the NCA to be made to your creditors, Credit Bureau's etc in the normal course of debt re-arrangement, your affairs will be dealt with in the strictest confidence.

6. CAN A DEBT COUNSELLOR HELP ME IF I ALREADY HAVE JUDGEMENTS AGAINST ME? - ( BACK TO TOP )


There must be no legal disputes in progress or legal orders in force. Debt repayments, where there are existing legal actions or Garnishee Orders in force will be excluded from any restructuring/re-arrangement. However, should there be a material effect on your ability to repay debt, every effort will be made to negotiate inclusion of such debt in the "restructuring pool".

7. CAN I CONTINUE TO APPLY FOR CREDIT OR USE MY EXISTING CREDIT AND STORE CARDS? - ( BACK TO TOP )


NO! Once all parties (creditors and yourself) agree to the debt re-arrangement plan, then no further credit can be obtained until such time as you have settled all other outstanding debts in terms of the agreed arrangements.

8. WILL CREDITORS CONTINUE PURSUING ME FOR THE PAYMENTS? - ( BACK TO TOP )


NO, they should not as you will have "made a plan" with them, through us, to repay your debt. WE CANNOT, however, guarantee this but CAN advise you and try to assist if and when this might happen through application for a Court Order against the Credit Provider.

9. WILL THE DEBT RE-ARRANGEMENT COVER ALL MY DEBTS? - ( BACK TO TOP )


YES, excluding any prior legal disputes in progress or legal orders in force as discussed in question 6.

10. WILL MY CREDIT PROVIDERS ACCEPT PAYMENTS LOWER THAN WHAT I HAVE CURRENTLY BEEN OBLIGED TO PAY? - ( BACK TO TOP )


YES, should this be in line with your re-arrangement based on your TRUTHFUL disclosure of your income vs expenditure.

11. HOW LONG WILL IT TAKE TO SETTLE MY DEBTS? - ( BACK TO TOP )


This will be dependant upon the extent of the outstanding debt and your ability to repay the outstanding debt. There is NO set timeline in which to settle your debt.

12. WHAT HAPPENS IF MY CIRCUMSTANCES CHANGE? - ( BACK TO TOP )


You should always contact your Debt Counsellor who will review your situation based on the changing circumstances and take the appropriate action on your behalf.

13. WHEN CAN I TAKE ADVANTAGE OF DEBT COUNSELLING? - ( BACK TO TOP )


Immediately by contacting us.

14. HOW DO I APPLY FOR DEBT COUNSELLING SERVICES? - ( BACK TO TOP )


Upon contacting us you will receive application forms which will need to be completed and returned to ourselves in conjunction with all other supporting documentation as requested by us.

NOTE: You will need to ensure that all information provided is accurate and correct. Failure to disclose any information requested, especially with regards to income and expenditure could result in you being barred from further debt counseling.

15. AM I CHARGED FOR YOUR SERVICES? - ( BACK TO TOP )


YES. All fees charged are in line with the structure as proposed by the National Credit Regulator.