Regulatory Alerts2021-06-07
Added · Updated
Circular 3 of 2024 - Alert to the credit industry: Misleading practices by debt counsellors
The National Credit Regulator instructs debt counsellors to desist from misleading consumers into debt review without their knowledge, full understanding, or consent. This prohibition covers deceptive telephonic solicitations, misrepresentation of government affiliation, and the use of electronic links that obscure the nature of Form 16 applications. Debt counsellors are required to ensure voluntary consumer application, provide clear explanations of the process, and maintain proper records of all activities. The regulator will enforce these obligations under the National Credit Act and take action against non-compliant practitioners.