NCR Debt Help To Protect Against Overspending By Consumers

by Ed Yourdon

With growing consumer debt in South Africa it has become necessary for the establishment of a National Credit Regulator (NCR) to provide help and guidance to consumers while also regulating the extension of credit by credit providers.

NCR debt help is regulated by the South African National Credit Act No. 34 of 2005. Seen by many as a life saving act in terms of consumer protection against reckless lending practices by credit providers in the country, the Act has also made provision for the establishment of the NCR for debt help and credit control.

In short, is forms part of the NCR’s role as enforcer of the National Credit Act. They are also responsible for education, policy setting, overseeing of credit provider registration, complaints management and the control of debt counsellors in the country.

The economical circumstances in the country because of the worldwide economic difficult period have led to many consumers struggling to pay their debt.

The consumers at one stage may have had enough income to support their credit spending, but with more and more credit on their names, may very well find that they are no longer able to pay such monies owing. The NCR debt help takes the form of information regarding debt review programs and counsellors registered for such.

It should be noted that once a consumer is under debt review that no more credit may be extended to the consumer for the period under debt review. It forms part of the NCR debt help policies to protect the credit providers against non-payment while also helping the consumer to break the debt cycle.

The consumer is then listed with the credit bureaus of South Africa as under debt review for the period.

Once the debt is settled the flag regarding debt review is removed from the consumer’s record at the credit bureaus. NCR debt help is extremely important to help South Africans break free from debt.

Related Blogs

Popularity: 2% [?]

Technorati Tags: Against, Consumers, debt, help, overspending, Protect