(Section 48 of the National Credit Act, No. 34 of 2005)

Notice

These Conditions of Registration are imposed by the National Credit Regulator in terms of section 48 of the National Credit Act, No. 34 of 2005 (“the Act”).

At the stage of application for registration, the NCR issues these as proposed conditions in terms of section 48(3). In terms of section 48(6), an applicant may consent to the imposition of the proposed conditions, in which case the NCR must register the applicant subject only to those conditions. If an applicant does not consent, the NCR may, after considering the response, finally determine the conditions to be imposed and register the applicant accordingly.

Once accepted or finally determined, these become binding Conditions of Registration and remain in force for the duration of the registrant’s status as a debt counsellor.

Failure to comply with these Conditions constitutes grounds for cancellation of registration in terms of section 57 of the Act.

General Conditions

1. A debt counsellor must comply fully with all legislation applicable to the conduct of debt counselling, including the Act, the Regulations, and any subsequent amendments or substitutions.
2. Debt counselling services must be performed consistently with the purpose and requirements of the Act, and must at all times be provided in a professional, reasonable, timely, fair and non-discriminatory manner. Under no circumstances may such conduct bring the NCR or the debt counselling profession into disrepute.
3. At the stage of application for debt review and throughout the process, a debt counsellor must ensure that consumers are fully informed of the consequences of applying for debt review and of the consequences of an order for debt re-arrangement being made.
4. Debt counsellors must comply with all requirements specified by the NCR in respect of registering consumers on the NCR’s designated database. They must also ensure that such records are updated regularly with review status and post-review performance.
5. Debt counsellors must not engage in any activity that creates a conflict of interest with the consumers they serve. They must not enter into any agreement or undertake any activity that could impair their ability to act solely in the best interests of those consumers.
6. The NCR must be notified immediately of any changes to a debt counsellor’s contact details, business premises, or any other material information supplied at registration. Where a change results in disqualification under the Act, the debt counsellor may not continue to perform the functions of a debt counsellor until compliance is restored.
7. Debt counsellors must submit all reports and returns required by the Regulations or by the NCR. The NCR is entitled to perform assessments and make enquiries, including credit bureau enquiries, to verify that debt counsellors continue to meet the requirements of the Act and are managing their finances responsibly.
8. Debt counsellors must permit the NCR or any person authorised by it to enter any premises from which debt counselling services are provided, and must cooperate fully with all compliance monitoring enquiries.
9. Debt counsellors must not charge or recover fees in excess of the limits prescribed in the Act or Regulations. On all other issues relating to fees, they must comply with the NCR’s Debt Counselling Fee Guidelines, as amended from time to time. All fees must be disclosed in writing and agreed by the consumer before the debt counsellor accepts an application in terms of section 86 of the Act. No fee may be recovered from a consumer before delivery of the service for which that fee is payable.
10. Debt counsellors must ensure access to adequate infrastructure, including telephone, email and computer systems, sufficient to enable them to provide debt counselling services professionally and reliably, having regard to practicality, expense and local circumstances.
11. Adequate records must be maintained and retained for a minimum of five years, providing a complete record of communication with consumers and demonstrating compliance with the Act and these Conditions. Copies must be provided to consumers, credit providers, the NCR or a court upon reasonable request.
12. A debt counsellor’s certificate of registration must be presented at the initial engagement with every consumer, regardless of location, and must be displayed prominently at each business premises. Any decal supplied by the NCR must be displayed at the entrance of such premises.
13. All information relating to consumers, credit providers, credit bureaux and the NCR must be treated as confidential. Disclosure may only take place with the written consent of the consumer to whom the information relates, unless disclosure is required by law, by court order, or by the NCR in the course of its monitoring or research functions.
14. Debt counsellors must attend training programmes and engage in professional development activities required by the NCR. A full record of such training and educational activities must be maintained.

Purpose of the General Conditions

The General Conditions are imposed in order to:

• Facilitate the effective implementation of debt counselling as envisaged by the Act;
• Enable the NCR to assess and monitor compliance by debt counsellors;
• Promote professionalism, integrity and ethical conduct in the industry;
• Safeguard the rights and interests of consumers and credit providers;
• Ensure that the NCR is able to collect accurate data on over-indebtedness and the effectiveness of debt counselling; and
• Ensure that debt counsellors remain fully informed of legislative changes and industry developments.

Specific Conditions

1. A debt counsellor may not receive or distribute payments from consumers in respect of debt obligations or counsellor fees. All payments must be received and distributed to the appropriate parties by a Payment Distribution Agency accredited by the NCR.
2. Debt counsellors must conduct their business in accordance with the Debt Counsellors’ Code of Conduct for Debt Review, as approved by the NCR and amended from time to time.
3. Debt counsellors may not, from the date of registration, engage in debt collection, act as credit providers, or act as agents of persons engaged in those activities.

Purpose of the Specific Conditions

The Specific Conditions are imposed in order to:

• Prevent debt counsellors from handling consumer funds directly where they do not have the systems and infrastructure to safeguard and account for such funds; and
• Ensure that debt review proceedings are conducted in a consistent, effective and efficient manner aligned with the objectives of the Act.

National Register of Debt Counsellors

In terms of section 53 of the Act, the NCR must establish and maintain a public register of all registered debt counsellors on its website. This register is primarily used by consumers seeking assistance from debt counsellors and by credit providers wishing to confirm registration details. It is therefore essential that information provided by registrants is accurate and up to date.

The National Debt Review Center’s debt counsellors are registered with the NCR & fully compliant with all conditions of registration under the National Credit Act.

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