Regulator wants debt counsellors to check for reckless lending for no fee
The regulator has issued notice of its intention to withdraw the reckless-lending fee from the debt-counselling fee guideline
If the National Credit Regulator (NCR) has its way, debt counsellors will no longer be allowed to charge you an additional fee for the work they do to get your credit agreements declared reckless. The regulator has issued notice of its intention to withdraw the reckless-lending fee from the debt-counselling fee guideline, calling for written submissions from the public and the credit industry before the end of the month. The R1,500 fee, which was introduced in April, was intended to encourage debt counsellors to look for reckless lending, which can lead to the debt being set aside. Some debt counsellors are not happy with the proposal. "Investigating reckless lending is very time-consuming and challenging for debt counsellors and the attorneys who have to represent the consumers at court," says debt counsellor Zak King.
"When the fee was introduced by the NCR in their guideline, reckless-lending investigations suddenly began to be done in earnest. Removing the fee will effecti...