Notice
This page reproduces the official Debt Counsellors Code of Conduct for Debt Review, as issued by the National Credit Regulator. The Code is binding on all registered Debt Counsellors in South Africa and must be implemented in accordance with the National Credit Act 34 of 2005.

Preamble

The Debt Counsellors Code of Conduct for Debt Review is adopted under the framework of the National Credit Act 34 of 2005. Its purpose is to prevent over-indebtedness, to provide assistance to consumers who have become over-indebted, and to ensure that debt review cases are brought to successful and efficient conclusion.

By subscribing to this Code, debt counsellors recognise the authority of the National Credit Regulator and commit to supporting the implementation of its measures, policies and guidelines. The Code represents a collective undertaking by the profession to implement both the spirit and the letter of the National Credit Act.

Commitments

2.1 Debt Review Process

Debt counsellors shall adopt and implement such processes as may be approved by the National Credit Regulator from time to time, with the aim of improving the efficiency and effectiveness of debt review. They shall conduct themselves professionally, courteously and ethically in all interactions with consumers, the Regulator, credit providers, credit bureaux, fellow counsellors and Payment Distribution Agencies.

Services must be marketed responsibly, ensuring that consumers understand that the object of debt counselling is the orderly repayment of debt within a reasonable period of time, without undue interruption. Clear and factual information must be provided in plain language, setting out the benefits, processes, risks, fees and implications of debt counselling in terms of the Act and this Code.

Debt counsellors are responsible for assisting qualifying consumers throughout the debt review process, for monitoring compliance with repayment arrangements and court orders, and for following up where consumers default on agreed monthly payments. They are required to cooperate fully with the National Credit Regulator in respect of complaints, to make use only of Payment Distribution Agencies accredited by the Regulator, and to maintain appropriate internal policies and procedures governing the treatment of debt review applications.

In relation to debt re-arrangement rules, counsellors are required to submit repayment proposals that are reasonable and fair to credit providers, to lodge debt review applications with the Magistrates’ Court or the National Consumer Tribunal in compliance with the National Credit Act, and to ensure that repayment plans are administered through a Payment Distribution Agency accredited by the Regulator.

2.2 Dispute Resolution

Debt counsellors must maintain effective mechanisms for the handling of consumer complaints. These mechanisms must be guided by policies and procedures compliant with the National Credit Act and must ensure that complaints are dealt with promptly, fairly and transparently. Where a consumer remains dissatisfied after the completion of an internal complaints procedure, the matter shall be referred to the National Credit Regulator. Consumers must also be provided with the Regulator’s contact details and with the documentation necessary to lodge a formal complaint.

2.3 Relationship with Stakeholders

The Code requires debt counsellors to support and cooperate with the National Credit Regulator in its role of facilitating agreement and cooperation within the industry. Debt counsellors must engage constructively with credit providers and Payment Distribution Agencies to ensure the debt review process operates efficiently, to resolve operational difficulties in good faith, and to secure realistic repayment proposals that promote genuine debt rehabilitation.

2.4 Consumer Awareness and Education

Debt counsellors must take appropriate steps to support national, industry and civil society initiatives aimed at promoting consumer education and financial literacy.

Monitoring and Compliance

The National Credit Regulator shall monitor the implementation of this Code and compliance therewith.

Reporting

Debt counsellors are required to update the National Credit Regulator’s DebtHelp system, or such other database as the Regulator may approve, in order to facilitate the monitoring of debt counselling. In addition, counsellors must submit annual reports to the Regulator, setting out the extent to which they have complied with the Code, the profiles of consumers assisted (including the types of debt involved), and any other statistics or information required by the Regulator.

Review of the Code

The National Credit Regulator may review and amend this Code as it deems necessary.

Date of Commencement

This Code came into effect on 1 May 2013 and replaced all previous versions.

Definitions

For the purposes of this Code:

• “Code” means the Debt Counsellors’ Code of Conduct for Debt Review.
• “Consumer” has the meaning given to it in section 1 of the National Credit Act.
• “Credit Provider” means a person registered as such in terms of section 40 of the Act.
• “Debt Counsellor” means a natural person registered as a debt counsellor in terms of section 44 of the Act.
• “NCA” means the National Credit Act 34 of 2005.
• “NCR” means the National Credit Regulator.
• “PDA” means a Payment Distribution Agency accredited by the National Credit Regulator.