Circular 2 of 2025 - NCR Debt Review Removal Circular National Credit Act Section 126A(3)

Number 2| March 2025
NCR “DEBT REVIEW REMOVAL”
CIRCULAR
NATIONAL CREDIT ACT – SECTION
126A(3)
Disclaimer:
While the NCR has taken reasonable care to ensure the factual accuracy of this Circular, it cannot guarantee such accuracy, especially with regards to future events. Accordingly, NCR does not accept any liability for damages incurred by any party as a result of decisions or actions taken on the basis of information supplied in this Circular. 1

1. It has come to the attention of the National Credit Regulator (“the NCR”) through various complaints
   received 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 at a large fee. In many instances, consumers are required to pay fees up to R10 000 for such services upfront, and in most instances, the debt review status of the consumer is not removed as claimed. Such practices and advertising of such “debt review removal services” are contrary to the provisions of the National Credit Act (“the NCA”).
2. While consumers have the right to be removed from debt review, there are certain circumstances in
   which they will be unable to do so. In this regard, these circumstances are fully explained under the NCR Withdrawal Guidelines 01 of 2021. Notwithstanding these Guidelines, the “debt review removal” companies and individuals charge consumers exorbitant fees with the promise of debt review removal, fully aware that such removal is not feasible according to the Guidelines. The disappointed consumers are subsequently left without any recourse, as these “debt review removal” companies and individuals are mostly unregistered with the NCR.
3. Section 126A(3) of the NCA makes provision for the charges levied to consumers for inter alia “debt
   review removal services”. The NCA states that any person that offers to supply, or supplies, any service to consumers to improve the consumers’ credit record or remove information from a credit bureau:
   May not receive any payment from a consumer until such services have been fully performed. Must provide a consumer with a disclosure statement in the prescribed manner and form.
4. Consumers are advised to be vigilant and exercise caution when dealing with companies or individuals
   who request upfront fees for “debt review removal services” without providing full disclosure of fees and payment terms. Consumers are requested to report any businesses or individuals offering such services, in violation of the Act, to the NCR.
5. Companies and individuals that conduct such services are in contravention of the provisions of section
   126A(3) and must comply with these provisions or abandon such services with immediate effect. Failure to comply to the provisions of the NCA or any Guideline issued by the NCR, will lead to enforcement action against such persons and/or companies. CIRCULAR 2 OF 2025

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Number 2 | March 2025
Disclaimer:
While the NCR has taken reasonable care to ensure the factual accuracy of this Circular, it cannot guarantee such accuracy, especially with regards to future events. Accordingly, NCR does not accept any liability for damages incurred by any party as a result of decisions or actions taken on the basis of information supplied in this Circular. FOR MORE INFORMATION Please contact Timmy Van Der Grijp on 011 554 2817, tvandergrijp@ncr.org.za should you have any queries.