National Credit Regulator on misinformation on social media platforms regarding debt review

The National Credit Regulator (NCR) was established under the National Credit Regulator Act 34 of 2005 (NCA) as the regulator and oversees the regulation of credit industry in South Africa. The National Credit Regulator is responsible for educating and protecting consumers from unfair or predatory marketing practices.

Recently, the National Credit Regulator has issued a notice to consumers to be wary of advertising practices by debt counsellors and unregistered persons with respect to debt review removals and debt review. It has been noted that consumers are being charged more than R8000 to have their debt review flag removed. Being removed in this way is deceptive, unlawful, and conflicting to the provisions of the National Credit Act and its regulations. This is causing a lot of harm and further putting into financial distress to many consumers when they do not receive the service that they were promised.

According to the National Credit Regulator, consumers are advised that this debt review removal is not backed by law. In the latest High Court Judgment, delivered by three High Court Judges, the Court stated that debt review removal is impossible for consumers who have been declared over indebted, and that consumers can be removed from debt review only after they have paid up all their debt.  Should the debt counsellor have processed a debt review court order, no Court, not even the High Court can rescind such judgment.

The National Credit Regulator warns that consumers are being contacted telephonically by unregistered persons purporting to be NCR Agents which is an unlawful practice as the National Credit Regulator does not contact a consumer to discuss debt review status.

Furthermore, the consumers are warned to be aware of debt counsellors and unregistered persons advertising that they work with National Credit Regulator. Consumers must ask for an official certificate issued by the NCR from such companies prior to entertaining such people to verify the authenticity of the companies or people and the service that they are offering.

The National Credit Regulator has further noted a spike in misleading advertising, especially on social media platforms such as Facebook , Instagram , Twitter pushing ads with the following headlines:

• Get debt written off by credit providers;
• Payment of a large amount of debt in a very short period of time;
• Government approved method to get debt written off;
• Government approved debt relief for over 30’s / 40’s / 50’s / 60’s;
• Pictures of senior government officials advertising debt relief; and
• Save consumers 63% / 60% / 55% / 43% on debt repayments.

Consumers are encouraged to report such practices to the NCR’s Complaints Department. This is type of advertising is causing a lot of harm and distress to many unsuspecting consumers because it’s all lies. Even attorneys cannot provide the services of a debt counsellor if they are not registered to do so.

Before making any payments for such services, consumers are urged to contact the National Credit Regulator, or access the website to verify the registration details and status of the persons making offers for the service. You can verify the debt counsellor by clicking here. At Debt Sage our debt counsellor is registered by the National Credit Regulator as NCRDC1 295.  So you then add NCRDC1295 where it says keyword and the debt counsellor and details will pop up.

You can contact the National Credit Regulator on 0860 627 627 or complaints@ncr.org.za to lodge a complaint against such practices.