Debt Counselling Process Becomes More Effective Through New Codes Of Conduct

Jan. 20, 2011 - PRLog -- In October 2009 the NCR (National Credit Regulator) set a task force in place to eliminate frustrating glitches being experienced in the credit review process. This task team observed, carried out research and then put forward a number of recommendations which were accepted and implemented by the NCR.

The first implementation has been that of the DRAC (Debt Review Advisory Committee) which is made up of a number of industry representatives and lead by Dr David Lewis. The main purpose of this particular committee is to monitor and regulate all stages of the debt review process.

This task force is also to oversee that the new codes of conduct are properly implemented and that proposals made by debt counsellors are done with integrity and fairness.

The new debt counselling codes of conduct seek out the following outcomes:

•   Streamline the debt counselling process through the standardisation of the content of payment plans and debt proposals.
•   Set in place an ombudsman for settling disagreements and disputes within the debt review process.
•   Implement general guides for ascertaining whether a debt review client will afford their monthly repayments or not.

The next step is to update and upgrade debt counselling and debt review software and computer programs to assist with the simplifying of the process. Up to date systems will ensure that they are able to operate and process debt counselling with integrity. How effective the new implementation is greatly depends on this updating and upgrading process.

Registered and approved financial services providers will need to abide by these codes of conduct if they want to avoid being reported to the relevant ombudsman’s. All changes are expected to be fully implemented and running smoothly by the beginning of 2011.

It is hoped that this new process is going to improve on the debt counselling process and resolve as many debt review cases as possible. The industry has much the same hopes in being able to change the process as the NCR does.

For debt counselling head over to http://www.debtcor.co.za/debt-counselling.html

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Debtcor South Africa specialises in debt counselling and other services to get people free from bad debt.