Regulatory Alerts2017-03-22
Added · Updated
Circular 6 of 2017 - Interpretation of Section 71 of the NCA
The National Credit Regulator interprets Section 71 of the National Credit Act to clarify that the term 'agreement' refers to the debt counselling proposal rather than the contractual agreement. Vehicle finance agreements are explicitly excluded from the classification of long-term agreements, and debt counselling court orders do not need to be rescinded before issuing a clearance certificate. Debt counsellors must continue using current measures to assess over-indebtedness until the Minister prescribes additional measures, while credit providers must apply industry-agreed processes for end balance differences and limit mortgage concessions to the remaining repayment term specified in the debt restructuring agreement.
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