What does a debt counseling business do?
Debt Counseling is professional service provided for over-indebted consumers and it’s a process regulated by the National Credit Act (NCA) designed to provide consumers with greater protection against creditors wishing to take legal action. There are over 74 000 judgments being passed on civil debt and 15 000 administration orders issued monthly in South Africa.
Is there a need for debt counseling businesses in South Africa?
At present there are 1 082 registered debt counsellors in South Africa and it’s still not enough”, says Lucky Manitoban, Registration Officer, NCR, indicating that there is a need in the market for more debt counseling businesses. (August 2009)
What are the training and registration requirements?
Debt counsellors have to undergo training and must be registered with the National Credit Regulator (NCR). Courses equip learners with the knowledge and skills to implement and apply the debt counseling process as stipulated in the Act, as well as knowledge and understanding of budgeting and personal financial management, listening, communication and interviewing skills.
The first step
The first step to become a Debt Counsellor is to complete a training course which must be accredited by the NCR. Courses are short, usually five days and fees differ depending on the educational institution. After successful completion of the training course, candidates must then apply for registration with the NCR as a Debt Counsellor. The fee for registration is R100.
Where to train
Educational institutions such as Damelin College, The Institute of Bankers, the University of Pretoria’s Law Clinic, Compuscan Academy and more, are registered with the National Credit Regulator to provide training in this field.
If you cannot attend a course in person, learners are afforded the opportunity through Compuscan, to qualify through distance learning.