South Africa's National Credit Regulator reports National Consumer Tribunal cancellation of CollectNet PDA registration and sanctions on debt counsellors for misleading Debt Help System updates

South Africa's National Credit Regulator (NCR) issued Circular 01 of 2025 summarising recent National Consumer Tribunal (NCT) judgments in debt counselling and payment distribution, highlighting enforcement outcomes where conduct was deemed prohibited and registrations were cancelled or suspended, alongside fines and remedial orders. In the matter against CollectNet PDA (Pty) Ltd, the NCT found multiple contraventions of registration conditions and provisions of the National Credit Act and regulations, cancelled the Payment Distribution Agency’s registration, imposed a ZAR 100,000 fine, and ordered the firm to cooperate with the NCR within 10 days to enter into and comply with a draft winding-up agreement. The circular also details four NCT judgments against debt counsellors relating to false and misleading Debt Help System updates on consumers’ over-indebtedness status, clearance certificates and court orders: Matea Gladness Maota’s registration was cancelled with a ZAR 100,000 fine, an interdict against similar conduct, and an order to cooperate in transferring consumers; Mandisa Perseverance Balungile Mthembu’s registration was suspended for two years, with the NCT stressing that individual debt counsellors remain accountable even when acting on employer instructions; Christopher Sethole’s registration was cancelled, with a ZAR 25,000 fine and orders for a complete audit and consumer refunds; and William Choshi’s registration was cancelled, with orders for an audit, consumer refunds, and cooperation in transferring consumers. The NCR reiterated that debt counselling registrants must understand and comply with their registration conditions and warned that prohibited conduct will be investigated and prosecuted under the National Credit Act.