On 29 July 2025, the National Credit Regulator released Circular 07 of 2025 (Misrepresentation of Debt Review), a direct response to rising reports of misrepresentations in the debt review process.

The circular follows a landmark ruling by the National Consumer Tribunal in Sandile Derrick Manzi vs Alice Dawn Barnard (NCRDC3277) & NCR, a case where a debt counsellor was fined R250,000 for placing a consumer under debt review without informed consent.

This ruling has far‑reaching implications for both debt counsellors and consumers in South Africa.

Case Summary – How a Consumer Was Misled into Debt Review?

In the case:

• The consumer was contacted by a cold‑calling representative, who offered “government employee benefits” and lower interest rates.
• He believed he was getting advice, not signing up for debt review.
• He was never told that his credit record would be flagged.
• He did not sign informed consent to be placed under debt review.
• The debt counsellor failed to explain consequences of debt review as required by the National Credit Act.

NCT Findings:

• Violation of Section 52(5)(c) of the NCA.
• Conduct amounted to prohibited conduct.
• Administrative fine: R250,000.
• Clear breach of professional ethics and registration conditions.

NCR Compliance Reminders for Debt Counsellors

Debt counsellors are reminded to:

1. Obtain written, signed consent before applying for debt review.
2. Conduct proper over‑indebtedness assessments in line with Section 86 of the NCA.
3. Fully disclose consequences (including credit profile impacts).
4. Avoid misleading advertising or implying debt review is a quick fix.
5. Maintain ethical, transparent conduct at all times.

Non‑compliance can lead to:

• Enforcement action.
• Deregistration.
• Heavy fines.
• Irreparable damage to reputation.

Guidance for South African Consumers

Before agreeing to debt review:

1. Ask exactly what the service involves.
2. Get all agreements in writing.
3. Verify the debt counsellor on the NCR register.
4. Be wary of cold calls promising “instant debt clearance”.
5. Remember, you cannot be placed under debt review without your signed consent.

Why This Matters for the Debt Counselling Industry

Circular 07 of 2025 is a wake‑up call for the industry.
For compliant debt counsellors, this is an opportunity to:

• Show transparency in every step.
• Educate consumers about their rights.
• Differentiate from unethical operators damaging industry trust.

At The National Debt Review Center, we follow strict NCR compliance.
Our clients always understand:

• The process.
• The impact on their credit.
• The legal implications — before signing anything.

In Conclusion

The NCR has made it clear:
Misrepresentation in debt review will not be tolerated.

For consumers — verify everything, ask questions, and only work with registered, ethical debt counsellors.
For debt counsellors — follow the law, or face serious consequences.

Need Help?

Contact The National Debt Review Center today for transparent, compliant debt review or removal services that put your rights first.

Learn More!

• Debt Review Removal in South Africa
• National Credit Act – Your Rights Explained
• How to Check if a Debt Counsellor is Registered