Thursday, 09 September 2010 21:39
National Credit Regulator (NCR)
Banking Association of South Africa (BASA)
Debt Counsellors Association of South Africa (DCASA)
EMBARGO: 10h00 Wednesday, 08 September 2010
Banks and credit regulator join hands to help debt stressed consumers
In an unprecedented move to deal effectively with consumer debt related challenges, the Banking Association of South Africa (BASA), the National Credit Regulator (NCR), and the Debt Counselling Association of South Africa (DCASA) today (Wednesday, 08 September 2010) announced the launch of a joint national consumer awareness campaign that will run through until 19 December 2010.
The joint campaign by key stakeholders in South Africa’s banking and credit regulatory environments is a first for the industry and aims to address adverse consumer behaviour trends as well as promote a better understanding of debt counselling, including expected conduct by consumers.
The campaign, funded by ABSA, African Bank, Capitec, First Rand, Nedbank and Standard Bank will convey key messages through a national advertising and publicity campaign, with very specific calls to action.
Mr. Johan de Ridder, African Bank Investment Limited (ABIL) Executive and campaign spokesperson for the banks says two target audiences have been identified for the campaign – consumers who are debt-stressed but not yet under debt review and consumers who are already under debt review.
“As a starting point we would like to invite debt-stressed consumers to contact banks when it comes to dealing with over-indebtedness before applying for debt counselling and preferably before actually defaulting.
“Part paying consumers under debt counselling are encouraged to visit their debt counsellor to ensure that they have a debt repayment plan in place that will enable them to settle their debts within a reasonable period of time as required by the National Credit Act (NCA) so that they can restore their credit worthiness.
“Finally, we would like to signal to non-paying consumers under debt counselling that they run the risk of having their debt review process terminated, and they may lose their assets and all protection afforded in terms of the Act.”
Mr. Peter Setou, Senior Manager: Education and Strategy at the NCR says the first call to action is to consumers experiencing debt distress to contact their bank, either via the National Debt Mediation Association (NDMA) call centre or by receiving an SMS with their respective banks’ contact details. “The NDMA call centre staff will filter incoming calls and provide preliminary advice to callers in terms of the appropriate line of action in their particular situation.
“The second call to action is to customers that are already in debt counselling to contact their existing debt counsellor.
“Debt counsellors have been briefed by DCASA and the NCR to expect responses from consumers and to ensure that they appropriately advise consumers with regard to the benefits, risks and obligations under debt counselling.”
According to Paul Slot, Spokesperson for DCASA, debt counselling at present is not achieving its aims as outlined in the NCA with limited cases being resolved and high levels of default by consumers under counselling. “This campaign in combination with the implementation of the NCR Debt Review Task Team recommendations accepted by the banking industry, aims to start reversing these adverse trends”.
The NDMA call-share debt helpline as well as an SMS facility that consumers can contact in response to key messages in advertisements will be operational from the launch date. Through this consumers will get contact details for their respective banks and credit providers.
De Ridder says that the NCR, banks and DCASA have geared-up their designated call centre staff and branch staff in anticipation of the upcoming launch of the campaign. “We are ready to handle the anticipated increase in call volumes, promote awareness of the messages, respond appropriately and give consumers the required support.”
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For further enquiries please contact:
Mr. Johan de Ridder, Executive Director of African Bank and Chairperson of BASA
Tel: 011 564 6000
Cell: 082 561 1141
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Paul Slot, DCASA NEC Member
Tel: 011 958 0266
Cell: 086 111 3967
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Lebogang Selibi
Media Relations Officer at the NCR
Tel: 011 554-2722
Cell: 083 271 6851
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
EDITOR’S NOTES
About BASA
The Banking Association of South Africa (BASA) in the representative trade association of the banking industry in South Africa and therefore has no power to regulate or sanction its members.
Basa strives to shape the future of banking in South Africa by formulating a long-term view of demands that may be placed on the banking sector and, through proactive engagement with its members and other stakeholders, assists with transforming the industry towards this long-term view.
The executive of BASA is required to balance the demands of industry representative with that of catalyst for change. This dual role requires effective governance processes to ensure the executive manages expectations when fulfilling its catalytic role, without necessarily having the required mandate from members.
A board-appointed committee of senior bank representatives provides the necessary oversight to ensure mandated industry positions are fully supported.
About NCA/NCR
The purpose of the National Credit Act (NCA) is to promote and advance the social and economic welfare of South Africans, promote a fair, transparent, competitive, sustainable, responsible, efficient and accessible credit market and industry, and to protect consumers.
The role of the National Credit Regulator (NCR) is as follows:
About DCASA
Debt Counsellors Association of South Africa (DCASA) is a professional body of Debt Counsellors in South Africa and promotes the interests of its members and keeps them up to date with the theory and practice of debt counselling and related services. The association promotes fair credit practice within South Africa and liaises and speaks to industry on behalf of its members.
The association insists on a high and ethical standard of behavior on the part of
their members to preserve and maintain the integrity and status of DCASA.
It takes the necessary steps to stop or prevent dishonorable conduct and/or
practices by its members. It is non-sectarian, non political and is the national voice of its members and co-operates with bodies that have similar objectives.
DCASA facilitates the discussion of matters of interest on Debt Counselling with the National Credit Regulator (NCR), Credit Providers and Credit Bureaus. It advises the NCR of all discriminatory practices relating to the reckless granting of credit to consumers and protects consumers against prejudicial and/or unlawful and/or discriminatory practice by Credit Providers and/or their agents and/or other Debt Counsellors.
It takes any measures which may be considered desirable to further the interest of its members and is a centre of excellence and provider of courses and training leading to appropriate Debt Counsellors qualifications.
About NDMA
The National Debt Mediation Association (NDMA) has been established by all the major credit industry associations, through a code of conduct approved by the National Credit Regulator in terms of section 48(1) of the NCA. The associations that established the NDMA are the Credit Providers Association (CPA), the Banking Association South Africa (BASA), the Furniture Traders Association (FTA), Micro Finance SA (MFSA), the National Clothing Retailers Federation (NCRF) and the Motor Financing Association (MFA). The Consumer Goods Council of South Africa has recently joined the NDMA. All the major banks participating in this campaign are affiliated to the NDMA.
The main role of the NDMA is to mediate cases where an affiliated credit provider unfairly withholds consent to a debt restructuring proposal from a consumer or their debt counsellor OR where an affiliated credit provider is not complying with its commitments in terms of the code. These commitments include complying with debt counselling operational and conduct related standards as well as making contributions to combating over indebtedness.
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