NCR cancels debt counsellors' registrations

The NCR received numerous complaints from consumers who had paid funds directly to Sahibdeen while they were under debt review in 2009. He failed to distribute these funds to their credit providers, affecting about 263 consumers. This is in contravention of his conditions of registration.

"Unethical behaviour by debt counsellors such as this means credit providers can take legal action against consumers because they have failed to keep up with their repayments while under debt review," says manager of Investigations and Prosecution at the NCR, Advocate Jan Augustyn. "As a result, a consumer can lose their most valuable possessions, such as their home and car."

'Acted unprofessionally'

Sahibdeen also failed to notify credit bureaux and credit providers within five business days of receiving an application for debt review, therefore contravening the National Credit Act.

"Sahibdeen was found not to have performed his duties as a debt counsellor in a manner consistent with the purpose and requirements of the NCA," comments Augustyn. "He acted unprofessionally and brought the NCR and debt counselling into disrepute."

The NCR launched an application for the cancellation of Sahibdeen's registration as a debt counsellor. On 25 October 2010, the National Consumer Tribunal ordered that his registration be cancelled.

"He was also ordered to refund consumers the money which they had paid directly to him, which never reached credit providers," says Augustyn.

He added that in order to protect consumers, the NCR would use the full might of the law to act against debt counsellors who do not abide by their conditions of registration and the National Credit Act.

Further cancellations

• In response to an application brought by the NCR, the National Consumer Tribunal (NCT) cancelled the registration of Zolile Senior Njokweni, who has been registered as a debt counsellor since June 2007. His registration was cancelled in November 2009.
  
• In another matter, Petrus Martinus Ferreira's registration was cancelled in March 2010. He was trading as Ferreira Debt Counsellors (FDC).
  
• The registration of another debt counsellor, Ralph Zulu of GNR and Associates was also cancelled; however, this cancellation was suspended for a period of one year. All these debt counsellors were found to have repeatedly contravened the National Credit Act (NCA) and their conditions of registration.