Our association has repeatedly approached the Department of Trade and Industry (dti) and the National Credit Regulator (NCR) to indicate that the rules laid out in the debt review process don’t work for the very poor, and we have asked for an engagement to define a special process in order to help. (And by “rules”, I don’t mean the debt review process itself.)
Two possible outcomes can play out in terms of the debt relief law:
1. Consumers can afford to pay a reduced payment if they fall into category 1 of people who can afford to repay. These consumers are most likely to dispute their payments within the first six months. For this reason, many debt counsellors set the bar on aiding people who earn R7 500.
The upcoming debt check movement in the banking industry, which is due to be in full effect by early next year, will change this.