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Media Info
 Debt counsellors approach banks with white flag to get more help for consumers
27 November 2009
The Debt Counsellors Association of South Africa has vowed to improve relations with banks and other credit providers to allay some of the conflict that some say has slowed assistance to heavily indebted consumers.
At present more than 150 000 of 17,4m credit active consumers are under debt review in South Africa and that figure is increasing by 10 000 a month, by contrast there are a little more than 3 000 debt counsellors struggling to assist them.
Court delays are until March 2011 with contested claims.
Tony Richards who was re-elected president of DCASA said there were still instances of some creditors ignoring the provisions of the National Credit Act and harassing consumers who were paying off debt, including breaking down doors or seizing cars and homes. "We need to reach common understanding and work in ways that encourage people to pay off their debt and be assured that they will not be harassed."
Newly elected vice president of the DCASA, Andre Snyman said that increasingly banks were starting to realise that debt counselling was bringing money back into creditors pockets, while helping consumers and reducing legal bills and animosity. Last month R104m flowed into creditors bank accounts from consumers, saving the creditors significant legal and debt collection costs.
At the annual general meeting of the DCASA near Oliver Tambo International Airport on 10 November, Banking Association of SA CEO, Cas Coovadia agreed that the National Credit Act had ensured South Africa had not faced a recession as bad as in the USA or Europe. He invited closer links between debt counsellors and banks to resolve ongoing problems around extensive consumer indebtedness.
Snyman said: "credit providers increasingly want to co-operate and find resolution, we went through an earlier period of mistrust and conflict but that is disappearing as banks realise that debt counselling works to benefit all." However, he acknowledged that there were still significant problem areas.
Richards said that in 2010 DCASA intended holding regular meetings with credit providers and DCASA members throughout the country to ensure they improve the sharing of information, "especially that relating to court cases and legislative changes."
FOR FURTHER INFORMATION www.consumerassist.co.za 0861 21 22 23 debt counselling call centre
Andre Snyman - CEO - Consumer Assist
aurelia.espag@consumerassist.co.za / 011 654 6018 (Languages: English, Afrikaans)
Source: Charlene Smith Communications(CSC)
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