09 Oct Choosing Between Debt Review Companies
Choosing between debt review companies can be tricky–after all, there are 1700 registered debt counsellors in South Africa. How is one to choose between them? We’ve put together a list of what to look for and watch out for in debt counselling companies you can use to make the right choice.
When deciding between debt review companies, watch for professionalism, evidence of expertise, a good track record, and relevant accreditation. Be sure to look out for a lack of NCR registration, an attorney, and poor communication skills.
Let’s discuss what to look for in debt counselling companies and how to decide between them.
What to Look for in Debt Review Companies
When looking through debt review companies, be sure they’re NCR registered, have good reviews or references, have the proper training, charge fees as set out by the NCA, and are of good character.
NCR Registration
Your debt counsellor should be registered with the National Credit Regulator. Debt counsellors must meet a strict list of requirements before they become accredited, for the safety of creditors, consumers, and themselves.
If you’re unsure whether a debt counsellor is registered with the NCR, ask for their NCR number. Go to ncr.org.za and look for your counsellor’s full name, or input their NCR number. For example, NCRDC196.
If their NCR registration number is not registered on the National Credit Regulator’s system, do not use their services.
True North Debt’s debt counsellor, Rynier Bernardo’s NCR number is NCRDC4171.
An Attorney
Reputable debt counselling companies like True North Debt partner with an attorney to provide legal aid to people with complex debt. Sometimes, you may need an attorney to argue against or dismiss charges like default judgments, garnishee orders, or asset repossession.
Good Character
Most importantly, your debt counsellor must have integrity, be committed to your case, and be professional.
If your gut tells you something is off, or that you can’t trust your chosen debt counsellor, it’s okay to look for another one. Debt review is a process that lasts for years, you should choose a debt counsellor you trust–one that you know will advocate for you and do their very best to fight alongside you for financial freedom.
What to Watch Out for
Look out for unlawful fees, poor communication skills, and bad reviews.
Unlawful Fees
The National Credit Act mandates that debt counsellors adhere to a set fee structure. They may not charge more than a set amount for debt rearrangement, application fees, negotiation with creditors, and other debt counselling-related admin.
Poor Communication Skills
Be sure your debt counselling company communicates promptly and doesn’t leave you waiting for answers to important questions. Debt is a delicate matter– debt counsellors should remove debt-related panic, not add to it.
It’s also a good idea to watch for poor grammar. While grammar is not necessarily an indicator of intelligence or debt counselling proficiency, it is an excellent indicator of commitment to professionalism. Misspellings of words and grammar show carelessness and lack of commitment to professionalism. It’s a red flag–creditors and other authorities like courts are unlikely to respect a debt counsellor with poor communication skills, particularly those who can’t muster up the energy to turn on spellcheck, which in turn reduces the likelihood of you attaining the lowest interest or repayments possible during negotiations with creditors.
Bad Reviews
Bad reviews are the number one way you can tell whether you should use a debt counsellor. If someone had a bad experience with a debt counsellor because of poor communication, unlawful fees, or lack of personal attention, chances are that you will, too.
Look at reviews on Trustpilot, Hello Peter and Google before deciding to contact a debt counsellor, and especially before signing any documents like Form 16s. It is possible to switch debt counsellors, but it’s a legal process that can take a lot of admin and emotional energy from all parties.
How to Choose a Debt Counselling Company
When choosing a debt counselling company, be sure to account for everything mentioned above, namely: choose a debt counsellor with good character, access to an attorney, and NCR certification. Also, watch out for unlawful fees, poor communication skills, and bad reviews.
If you would like to partner with a debt counselling company you can trust, choose True North Debt. Our resident debt counsellor, Rynier Bernardo is NCR registered, communicates promptly, and strictly adheres to all rules and regulations set out by the NCR and NCA.
If you’re over-indebted, contact True North Debt today to discover why we’re one of South Africa’s best debt review companies.