The final implementation for the National Credit Act 34 of 2005 has been set for 1 June 2007. The Act is set to change the management of credit, sales and marketing in South Africa. The National Credit Regulator (NCR) was established as the regulator under the Act and is responsible for the regulation of our credit industry. The NCR’s main task is to carry out education, research, policy development, registration of industry participants, investigation of complaints, and to ensure the enforcement of the Act. The Act calls for debt counselling, as well as the introduction of a new type of professional in the credit landscape.
The new law requires that consumers be referred to debt counselling before any legal action be taken against them for non-payment of debts. Debt cousellors will conduct independent enquiries into consumers’ financial circumstances and make recommendations to the courts concerning debt restructuring and suspension of reckless credit agreements.
To become a debt counsellor, South African citizens have to be over the age of 23 and have a minimum of two years experience in accounting, finance, legal, para-legal or credit fields. Aspiring debt counsellors will also have to have a clean credit record - have no debt-related judgments against them at the time of applying and not be under administration. The introduction of this has opened a new career option for suitable individuals meeting the criteria. Interested individuals will need to attend the five day course developed by the NCR before applying for registration with the NCR as a professional debt counselor.
The debt counselling course covers general outcomes such as listening and communication skills, interviewing skills, as well as budgeting and personal financial management know-how. It also requires specific outcomes regarding the debt counselling process as stipulated in the Act - from filling in an application for counselling to obtaining a clearance certificate.
The NCR is eager to train people as soon as possible as the Act requires that debt counseling services must be easily available to all South African Consumers by June 2007. Their aim is to train at least 500 debt counsellors nationwide. A number of training providers have been chosen to conduct this training on behalf of the NCR. Damelin is amongst this list of chosen providers.
Damelin Cape Town will be running the 5-day programme starting the week of the 16th March from Cape Town’s corporate training suite in Milnerton. Damelin will also be presenting the Short Programme in Introduction to National Credit Act for those that wish to have a good working knowledge of the Act including Consumer Credit Agreements, Consumer Credit Policy, Collection, Repayment, Surrender & Debt Enforcement. Enquiries can be directed to Megan van Wyk at meganv@damelin.co.za or call the Damelin Cape Town offices on 021-6868991.
A number of employment possibilities exist for suitable candidates. The NCR will contract a number of counsellors as well as some firms such as accounting firms and legal centres who are likely to employ in-house debt counsellors to add value to their clients as well as providing an entrepreneurial opportunity for enterprising debt counselors to start their own counselling consultancies.
For more information on the National Credit Act and on the new profession of debt counselling please visit the website of the National Credit Regulator at www.ncr.org.za or phone 011-554-2600 or the helpline 0860-027-627.
