Debt counsellor's registration cancelled
In response to an application brought by the National Credit Regulator (NCR), the National Consumer Tribunal (NCT) cancelled the registration of Zolile Senior Njokweni, who has been registered as a debt counsellor since June 2007, on Monday 2 November 2009 with immediate effect.
Adv. Jan Augustyn, manager of Investigations and Prosecutions at the NCR said that an investigation into Njokweni's practices was provoked by complaints from several of his clients who were undergoing debt review. “The NCR then found that Njokweni was repeatedly failing to comply with the administrative duties of debt counsellors as prescribed by the National Credit Act (NCA) and its Regulations and with certain of conditions of his NCR registration.”
Instances of NCA contravention included: failure to provide consumers with proof of receipt of their debt review application; failure to obtain all required information from consumer applicants; and failure to notify relevant credit providers and credit bureaux of such an application within five days of receiving it. In addition, Njokweni repeatedly failed to determine in the prescribed manner and time (being 30 days after receipt of the application) whether a consumer was over-indebted or not.
“The NCR cautions all registered debt counsellors to ensure that they have sufficient resources and capacity in order to practice effectively, serving their clients with commitment and as the law requires them to. Debt counselling is a mechanism for resolving over-indebtedness, based on the principle of the consumer being able to discharge financial obligations satisfactorily. The debt counsellor must therefore act professionally and reasonably in providing debt counselling services to consumers and provide such services in a manner that is timely, fair and non-discriminatory and does not bring the NCR or debt counselling into disrepute,” concludes Augustyn.
