Debt counselors NOT mandated to contact consumers on behalf of the credit regulator

Debt Review Companies Use the National Credit Regulator as a Calling Card to Trick You – Wendy Knowler on The Money Show

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Wendy Knowler looked at the practice of companies duping consumers into debt scrutiny on The Money Show two weeks ago.

And consumer complaints have not ceased to flow, says the consumer journalist.

What these companies do is scam people into selling what is effectively debt advice as a way to lower their monthly payments.

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A man was contacted by a company called “Infinite Debt Solutions” who made the following statement:

“We are registered with the National Credit Regulator (NCR) and as a result of the pandemic, we are currently mandated to contact all consumers who pay more than two thousand rand per month for all their loans and accounts.

This appears to be another attempt to make consumers understand that a debt collection company has a special mandate from the NCR, Knowler says.

RELATED: Don’t Be Fooled By Debt Review On The Phone With Promises Of Lower Repayments

She reports that the regulator has made it clear to her that it has not commissioned ANY registered debt management counselor to contact consumers and also has no legal authority to do so.

The NCR also pointed out that the debt review is not a savings mechanism, but a debt restructuring mechanism.

As I told NCR, I find it deeply disturbing that so many companies seem to be targeting consumers by promoting debt counselling/review as a way to save a few bucks on their monthly repayments. It’s a complete abuse of process and causes people to lose control of their accounts.

Wendy Knowler, mainstream journalist

In November last year, the National Consumer Court found Clark Gardner of Summit Financial Partners guilty deceptive advertising practices such as these.

The offenses included “failure to determine whether consumers were over-indebted” and “failure to inform consumers of the consequences of a request for debt review”.

The quickest way for a person to leave the process is to go to the High Court on the back of Section 72(1)(d) – this section makes it clear that the consumer is to be compensated for the funds they needs to repair their credit report and the person who illegally reported to the credit bureaus that they were over-indebted is liable for payment.

Wendy Knowler, mainstream journalist

For more details on this heinous trend, listen to the conversation below:

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