< BACK  1 of 2  NEXT >

Be in control - access your credit report from registered credit bureaux

For Immediate Release: September 2011

The National Credit Regulator (NCR) will embark on a campaign to educate and inform consumers about credit bureaus and all that they need to know about credit bureau information. The campaign will start this month.

Darrell Beghin, Credit Information and Research Manager at the NCR says “a credit bureau is an institution with characteristics of a library. It operates like a library of personal credit information in that it stores the history of your credit behavior and is referenced by various parties for that history”.

“Every person who has an account, anywhere in the country with  a credit or service provider who make use of credit bureau services, will find the information about the account is recorded with a credit bureau irrespective of whether that person pays their account regularly, or not. The purpose of listing the information collectively at the credit bureaus is to create a  comprehensive view of the consumer for both  prospective and existing credit and service  suppliers to assist them in the evaluation of credit or account applications and also to assist in the management of their relationship with their customers ”, explains Beghin.

This is in line with the National Credit Act (NCA) because before credit providers extend credit to consumers, they are required to conduct an affordability assessment, by assessing the consumer’s current level of debt obligation and credit worthiness, through gaining insight into the debt repayment history of the credit applicant, and the current extent of credit and financial obligations, combined with a review of the income of that person.  Income information is not typically stored at the bureaus and as a result, the credit applicant will need to supply the prospective credit provider with proof of income.

Beghin says consumers are entitled to get a free credit report once a year from any of the eleven registered credit bureaux. “In excess of the one free credit report, a further credit report will cost you no more than R25.00”, she advises. She recommends that you should obtain your credit record from more than one credit bureau as different credit bureaus may contain different information about you and it is wise to have a comprehensive understanding of the information available about you.

Your credit profile will also help you to understand where you are financially in terms of affording your existing and possibly more credit,” adds Beghin “It is in your interest as a consumer to ensure that your credit information reflected at the credit bureaux is correct. If, after accessing your credit report, you feel that there is information that is not supposed to be on your credit record or which is incorrect it is your right to dispute such information by lodging a complaint with the respective credit bureau.

Beghin urges consumers to actively manage their credit profiles. “You are more able to control your credit experiences if you are aware of your credit report and its contents.  This will enable you to understand the likely interpretations and conclusions which credit providers could draw from your record.  By doing this, your credit bureau report will not come as a shock when you apply for credit or are denied credit”.

The National Credit Regulator urges consumers to access their own credit reports from the eleven registered credit bureaux as we believe that an informed consumer is a protected consumer, concludes Beghin.

Details of the registered credit bureaux are available on the NCR website, www.ncr.org.za or alternatively contact the National Credit Regulator’s call centre at 0860 627 627 for assistance.


ENDS


ISSUED BY: Leana Lucouw Bullion PR & Communication Tel: (011) 803 3615
Cell: 083 386 0839
E-mail: leana@bullionpr.com
Website: www.bullionpr.com


ON BEHALF OF: Lebogang Selibi The National Credit Regulator Tel: (011) 554 2722
E-mail: lselibi@ncr.org.za
Website: www.ncr.org.za


Posted @ 9/26/2011 5:33:31 PM by |


New rules system helps standardise and speed up debt review proposal process
New rules system helps standardise and speed up debt review proposal process


For Immediate Release: August 2011


A new system which standardises the way debt counsellors assess applications and draw up proposals for over-indebted consumers will help speed up the debt review process and keep debt review cases out of court.

The Debt Counselling Rules System (DCRS) aims to address concerns of inconsistency in the way debt review proposals are determined and improve the solve rate of proposals through consent agreements.

The system is the outcome of a recommendation by the National Credit Regulator’s (NCR) Task Team which was set up to investigate bottle necks in the debt review process.   The Task Team found that, inconsistencies in the programmes used by debt counsellors to formulate debt review proposals was undermining the effectiveness of the process.  In order for the system to work, debt counselling system vendors have had to incorporate the DCRS rules into their systems in order to be able to produce standardized outputs and documentation as a requirement of the DCRS.

“The Debt Counselling Rules System is the outcome of a year of hard work where each rule was agreed upon by different players in the credit industry,” says Ismail Kharwa, Acting Debt Counselling Manager at the National Credit Regulator.

Under the National Credit Act (NCA) over-indebted consumers can use a debt counsellor to make an application to restructure their repayments to their creditors.  If accepted by credit providers, then the consumer’s most valuable assets will be protected from repossession.

“But in order for this to work, creditors need to trust that the consumer will be able to make some kind of monthly repayments on their debt, even at reduced rates,” says Kharwa . “In the past, there was no standardisation in the way proposals were drawn up and cases would often end up in court with obvious negative consequences for both consumers and creditors providers.”

The Debt Counselling Rules System was developed by the Banking Association of South Africa (BASA) and it is currently managed by the National Debt Mediation Association (NDMA). A legal entity known as the Central Rules Engine (CRE) has been established to govern the DCRS with a board consisting of credit providers, debt counsellors and software vendors.   The system has been endorsed by the Debt Counsellors Association of South Africa (DCASA), Payment Distribution Association of South Africa (PDASA) and the Credit Technology Association (CTA), which represent the software vendors.

The rules in the system relate to different formulas that debt counsellors enter into the system to see whether a consumer can be rehabilitated. “For example, if all administration fees are waived, or if the interest rate on the loan is reduced or the term of the loan extended, will the consumer be able to pay back their debt within the five years that they have to be rehabilitated?” explains NDMA CEO, Magauta Mphahlele. “The system helps deter- mine whether the consumer can be rehabilitated in terms of the Task Team Rules.”

Debt counsellors can choose to log onto the system and submit the affordability assessment and restructure proposal to the DCRS which verifies whether the proposal solves under the rules or not.
The benefit of the system is that each proposal entered is given a reference number, which the debt counsellor can then include in the final proposal sent out to creditors.  Lenders can then log onto the system and check that the proposal submitted to them is the one that the debt counsellor submitted to the Central Rules System.

“If the proposal has been approved through the DCRS, it’s far more likely to be accepted by lenders,” says Mphahlele.

Although there is no obligation for debt counsellors to use the system nor for credit providers to accept debt review proposals that have been approved through the DCRS, Mr. David Lewis, Debt Review Advisory Committee chairperson, says it will make it much simpler  for credit providers to assess applications.  It is through the subscription to the Codes of Conduct by all stakeholders that will require both debt counsellors and credit providers to use the DCRS in order to ensure compliance with these rules.

“It’s in the interests of all parties involved to stay out of court and to recover as much of the debt as possible,” says Lewis.

Debt counsellors believe the new system will enable them to provide more clarity to consumers about whether their debt review proposals are likely to be accepted and prevent already over-indebted consumers from incurring unnecessary fees and legal costs.
“If proposals are readily accepted, consumers can start making their restructured repayments sooner and begin the process of rehabilitating their finances more speedily,” says Paul Slot, DCASA spokesperson.

The system has been audited and tested by a firm of independent auditors appointed by NDMA and will monitor its deliverables on a monthly basis.

ENDS


Lebogang Selibi
The National Credit Regulator
Tel: (011) 554 2722
E-mail: lselibi@ncr.org.za
Website: www.ncr.org.za

Posted @ 8/29/2011 2:05:36 PM by |


< BACK  1 of 2  NEXT >

Categories

Debt Counsellors

Marsia Kuypers

Tel: 082 396 2568

Fax: 086 556 3328

Area: Pretoria

Jan-Viljoen Coetzee

Tel: 084 549 1755

Fax: 086 621 9193

Area: Nina Park

Valerie Nakale

Tel: 018 381 8768

Fax: 018 381 8604

Area: Mafikeng

Dean Morris

Tel: 083 645 4094

Fax: 031 763 4363

Area: La Lucia

Joana Vivier

Tel: 053 832 6229

Fax: 086 543 4640

Area: Kimberley

Jacques Jooste

Tel: 011 794 7555

Fax: 011 794 9965

Area: Johannesburg

Marlene Stein

Tel: 012 667 4177

Fax: 086 527 2203

Area: Irene

Heidi Naude

Tel: 044 873 0281

Fax: 086 512 5012

Area: George

Herbert Theron

Tel: 011 472 0088

Fax: 086 655 6730

Area: Florida

Isabe Landman

Tel: 041 933 1189

Fax: 086 591 2676

Area: Despatch

Andiswa Tinto

Tel: 021 431 9134

Fax: 086 523 7084

Area: Cape Town

Jaco Janse Van Rensburg

Tel: 082 568 4969

Fax: 086 645 0389

Area: Barberton

Monique Snyders

Tel: 032 946 3024

Fax: 086 588 4605

Area: Ballito

Christopher Beukes

Tel: 084 2577599

Fax: 021 637 5023

Area: Athlone

Lydia Kinnear

Tel: 082 824 6338

Fax: 086 537 5976

Area: Annlin

Anlizette Schuurman

Tel: 031 903 3840

Fax: 031 701 5570

Area: Amanzimtoti

Kelebogile Mooketsi

Tel: 082 299 3430

Fax: 086 695 3280

Area: Amandasig

Annerie Marais

Tel: 083 703 0486

Fax: 045 838 6572

Area: Aliwall North

Rerandzo Mokgwatlheng

Tel: 082 430 6329

Fax: 011 805 8348

Area: Alexandra Township

Daniel Lezar

Tel: 011 907 1022

Fax: 011 907 1490

Area: Alberton