South Africa’s National Credit Regulator (NCR) issued a circular on “debt review removal” services, warning that companies and individuals offering to remove consumers’ debt review status from credit bureau records must comply with section 126A(3) of the National Credit Act and that failures will lead to enforcement action. The NCR linked the circular to complaints from consumers and debt counsellors about providers charging large upfront fees, in some cases up to ZAR 10,000, while the promised removal often does not occur. It noted that while consumers may have a right to be removed from debt review, removal is not possible in certain circumstances, as set out in the NCR Withdrawal Guidelines 01 of 2021, and some providers market removal services despite knowing these limitations. Under section 126A(3), any person offering or supplying services to improve a consumer’s credit record or remove information from a credit bureau may not take payment until the services have been fully performed and must provide a disclosure statement in the prescribed form; consumers were urged to avoid paying upfront fees without full disclosure and to report suspected violations to the NCR.
National Credit Regulator 2025-03-01
South Africa’s National Credit Regulator warns debt review removal providers to stop charging upfront fees and face enforcement
South Africa’s National Credit Regulator (NCR) issued a circular warning against non-compliant "debt review removal" services, emphasizing adherence to section 126A(3) of the National Credit Act. The circular responds to complaints about providers charging large upfront fees, sometimes up to ZAR 10,000, without delivering promised services. The NCR advises consumers to avoid upfront payments without full disclosure and to report violations.