Debtfree Magazine Issue 11 of 2021

It is not uncommon for people who have been using credit for years,
to form a sort of addictive dependency on credit use, and when it is
cut off they can become very anxious. Many crave credit use and can
be upset when credit providers turn them down.
In 6 cases under investigation, the Debt Counsellor let the NCR
know the consumer was applying for debt review before they had
actually signed the final formal application form and received all the
information to compliment the application. Although there are other
ways to get this info (and technology helps consumers sign digitally
these days) the timing of these events was key in this case.
The NCR also did not like when legal fees were set aside for
attorneys. This was done in the traditional way, being in ‘month 2’
of the review process. The NCR have issued a updated fee guideline
that says attorneys must now only get paid once the court work is
finished. Attorneys and the law societies have stated that they do not
fall under the NCR’s authority and want get paid up front, so this has
become a problem area for those adhering to the NCR’s guideline.
NCT Ruling
The NCT issued a R500 000 fine and said Mr. Fourie must stop being
a Debt Counsellor. Mr. Fourie will probably be appealing the ruling.
What Can We Learn From These Rulings?
Whether you agree with the rulings or not and whether the outcomes
may contradict one another or not there are valuable things that can
be gleaned from the rulings.