National Credit Regulator versus Nedbank Ltd and the practice of debt counselling in South Africa

Abstract

The implementation of debt review mechanisms provided for in Sections 86 and 87 of the NCA led to conflicting views, as expressed by debt counsellors, the Regulator, the major banks and magistrates. Uncertainty and confusion with regard to the proper interpretation of these two sections of the NCA followed. Contradictory decisions given by magistrates also hindered the effective application of the NCA as regards debt restructuring. It was even possible that there were serious shortcomings in the NCA itself, which should be addressed by appropriate amendments of the Act.