A little while ago the NCR issued a guideline on how they feel fees should be charged by Debt Counsellors and attorneys.
It should be noted that this is a non binding opinion. Not law, not regulation nor obligatory. It is simply what the NCR feels is best.
‘It is simply what the NCR feels is best’
Most Debt Counsellors stick very close to this voluntary guideline (mostly so they don’t get any trouble from the NCR). Since the National Credit Act and Regulations are quiet on the topic of what the fees actually look like, the guideline (and others that have been published in the past) is popular.
Attorneys, however, do not really care what the NCR has to say about the way they should charge fees.
Obviously, the NCR has no authority over them and no ability to dictate fees. So, in general the Attorneys ask consumers to pay them as they feel is best. For some that’s a monthly retainer or a small incremental payment over time or most popular, a payment from the consumer’s second debt repayment. This is popular because for a decade this was how it was done and was perpetuated by a Task Team and past Guideline from the NCR.
Note: most banks, including Capitec Bank, have signed that they will stick to the NCR Task Team agreement (as opposed to the current NCR fee structure – which they also follow at present).
