NCR Circular 2 of 2025
The National Credit Regulator recently received various complaints by consumers and debt counsellors that certain companies and individuals offer “debt review removal” services to consumers, in which it is claimed that a consumer’s debt review status will be removed from the credit bureaus. In many instances consumers are required to pay fees up to R10 000 for such services upfront. In most cases the debt review status of consumers is not removed as claimed.
Section 126A(3) of the National Credit Act states that any person that offers to supply, or supplies any such services to consumers may not receive any payment from a consumer until such service has been fully performed, and must provide a consumer with a disclosure statement.
Consumers are advised to be vigilant and exercise caution when dealing with companies or individuals who request upfront fees for debt removal services without full disclosure of fees and payment terms.