IFP Member's Statement on Unscrupulous Debt Counsellors


National Assembly: Cape Town, 9th June 2011    

Honourable Speaker:


Allegations have recently emerged of the practices of some very unscrupulous debt counsellors and payment distribution agencies, who have allegedly been skimming millions of Rands per month from people under the debt review, in terms of our National Credit Act.


It is alleged that these debt counsellors are receiving monthly payments from debtors, but instead of immediately disbursing the money to creditors, they are instead holding onto the funds for up to two weeks in their own interest bearing accounts. Interest on monies paid in good faith by debtors, is said to be in the region of 6.5 million Rands per month, nationally.


These actions border on criminal conduct. We are therefore very pleased to see that Minister of Trade and Industry is considering appointing a Commission to investigate this matter. We urge the Minister to take swift action.


I thank you.