Mr. Peter Michaels made a spirited presentation toward the close of the day and broached the
topic of recent industry updates in the wake of the amendments to the NCA last year. He also
touched on all the sub committees being formed by the NCR organised Credit Industry Forum
(CIF). Some of the upcoming projects include: Section 103(5), Clarity on Withdrawal Guidelines,
End Balance Disputes, the NCR Debt Help System, PBLs, Reckless Lending Process (when
complaints/allegations are made to the NCR). He also touched on the recent court judgements
regarding debt review. In one case a DC was forced to pay fees partially because they followed
the NCR’s guideline on fees and caused the consumers vehicle to go into default (among other
issues). He lightly glossed over that as he focussed on how there had been no plan (within the
60 days of review) to sell the consumers second house. He also touched on the Nedbank v Norris
& Mag. Dumani case. The NCR feel that where the credit provider and consumer agree to lower
the interest rates not doing so would prejudice the consumer.
The NCR trying to figure out why consumers are wanting to/ are changing Debt Counsellors so
much. It is causing havoc with their NCR Debt Help system and making lots of work for them. It
also was said that Debt Counsellor training material has been updated in line with amendments
to the NCA. Very exciting was a comment that the NCR will soon be releasing a very pro debt
review brochure.
Ms Legodi closed out the day by discouraging credit providers from reckless credit granting and
saying the NCR want to see consumers maximising the use of debt review to address debt.
THE GOOD, THE BAD AND THE UGLY
GOOD
The venue and large number of attendees was great. Ms Legodi said that there will be a review
of Debt Counselling fees (no indication of when and by who).
BAD
The NCR indicated that as per rumour they wish to take their non binding guidelines and try
squeeze them into the Debt Counsellor conditions of registration (thus making them binding).
This will no doubt lead to lots of applications to the NCT contesting this.
UGLY
The Cape Law Society presentation started out strong but ended ugly.