Debt Counselling Fees have been under the spotlight in recent weeks due to the North Gauteng High Court upholding a ruling by the National Consumer Tribunal in the deregistration of Christoph Bornman as a debt counsellor.

The NCR investigated Mr Bornman, and found that he contravened the credit act by

·         Deducting fees to which he was not entitled

·         Receiving After-Care fees for services he did not provide

·         Failing to follow the debt review process prescribed in the NCA.

·         Neglecting to assess his clients’ level of indebtedness properly.

·         Failing to issue repayment proposals to his clients’ creditors.

·         Failing to submit repayment proposals or recommendations to the relevant magistrate’s courts.

·         Failing to identify cases of reckless lending and refer these to the NCT.

As a consumer it is important for you to know how the debt review process works, what information needs to be sent to creditors and when, what fees your DC is allowed to charge.

Ensure that your DC communicates with you at all times, keeping you in the loop as to what is happening in your debt review application.

It is your money – you have a right to know!