It's no secret I've been scanning for practical implimentation information on the NCA. To a large extent it has proved fairly frustrating, particularly when looking at interprative statements issued by the legal profession. The message seems pretty consistent - "Yes, there are major implications. You'd better become a client quick."
So this story from IOL comes as no surprise.
Debt counselling services were being eyed as possible cash cows by legal practitioners, said the Black Sash, a non-profit organisation that offers free consumer advice.
The National Credit Act, which comes into effect next month, provides opportunities for consumers caught in the debt trap to seek help to restructure their debt payments and restore their financial health.
Consumers will be able to do so through the services of debt counsellors, who are to be registered by the National Credit Regulator (NCR). Debt counsellors will provide highly indebted consumers with budget advice and mediate with credit providers on their behalf.
While there are organisations already providing free debt counselling to people in crisis, the NCR said this week it would allow service providers to charge fees to recover costs. Consumers would face debt counselling fees of between R500 and R1 200, depending on the time taken to restructure their debt.
full story from IOL here