THINK ABOUT YOUR PROGRESS

There are currently 7 NCR registered Alternative Dispute Resolution Agents in South Africa (Sept 2023). These are known as ADRAs.

Some people get confused, but ADRAs are not the same as Debt Counsellors. Though both are found in the National Credit Act and are referred to in the scary Section 129 letters to consumers, they perform different functions.

ADRAs help deal with complaints

Or

disputes about credit accounts.

Debt Counsellors help restructure debt repayments on credit accounts.

Any consumer can submit a complaint to the NCR about an alleged contravention of the Act or a complaint concerning an allegation of reckless credit (where the consumer didn’t understand what they were getting themselves into or were not fully informed of the obligations and cost or could not really afford to repay the debt).

However, as an alternative, Section 134(1)(b) (ii) of the National Credit Act (NCA) says that instead of filing reckless lending accusations or complaints to the NCR, these can rather be referred to an ADR for resolution of the disputes. This would possibly be done through conciliation, mediation or arbitration.

So, the two parties would basically discuss it with the ADRA (in one set up or another) and try to agree to a solution or have someone decide on a solution in the case of arbitration.

If they can’t agree then things would be referred to the NCR or even the NCT instead.