Unscrupulous Debt Counsellors Exploit Consumers, NCR Warns — DCASA Calls for Industry Unity and Accountability

JOHANNESBURG — October 2025
The National Credit Regulator (NCR) has issued a stern warning to South African consumers about unscrupulous individuals and companies posing as legitimate debt counsellors, exploiting financially distressed consumers through deceptive “debt-review removal” schemes. The Debt Counsellors Association of South Africa (DCASA) has condemned these practices, calling for stricter enforcement and renewed industry accountability.

According to the NCR, an increasing number of unregistered operators and deregistered counsellors are targeting vulnerable consumers through social media and WhatsApp marketing, promising to “clear debt-review flags” or “cancel debt review” — often at exorbitant fees of up to R8 000 per case. These offers are not only misleading but unlawful under the National Credit Act (Act 34 of 2005).

“These so-called ‘debt-review removals’ are not supported by law,” said Advocate Kedilatile Legodi, Manager of the NCR’s Debt Counselling Department. “No person — not even the High Court — may remove a debt-review status for a consumer who has been declared over-indebted, unless all debts are paid in full or settled in terms of the court order.”

The NCR’s investigation follows mounting complaints from consumers who have paid thousands to fake agents claiming to represent the Regulator, only to discover their debt-review status unchanged — and their financial situation worsened.

DCASA’s Response: “Integrity Is Non-Negotiable”

As the country’s oldest and largest industry association representing registered debt counsellors, DCASA has reiterated its stance that only NCR-registered professionals may legally offer debt counselling services.

“Integrity is non-negotiable in this profession,” said Casper le Grange, National Executive Committee member and Eastern Cape Representative of DCASA. “When rogue operators exploit consumers’ desperation, they undermine years of hard work by ethical counsellors who comply fully with the National Credit Act. DCASA will continue to work with the NCR to protect the public and strengthen the credibility of the debt-review process.”

Le Grange added that DCASA members are bound by a strict code of conduct that promotes transparency, accountability, and consumer education — principles essential to rebuilding trust in South Africa’s financial-wellness sector.

The Scale of the Problem

The NCR reports a surge in social-media adverts using government logos, the NCR emblem, and even photographs of ministers to lure consumers into false “government debt-relief” offers. These tactics not only breach advertising laws but also erode consumer confidence in legitimate debt-review solutions — an essential safety net for more than two million South Africans facing unmanageable debt.

“These misleading claims are dangerous,” said Le Grange. “Debt review, when done lawfully, is one of the most effective consumer-protection tools in our economy. It allows families to keep their homes and cars while repaying debt at affordable instalments. We must not let opportunists destroy that system.”

Consumer Advisory: How to Stay Safe

DCASA urges all South Africans seeking debt relief to verify the legitimacy of any debt counsellor before engaging their services. Consumers can:

1. Verify registration — Visit the NCR website (www.ncr.org.za) or call 0860 627 627 to confirm the counsellor’s NCRDC number.
   2. Avoid direct payments — Debt counsellors may not collect or distribute consumer funds directly. All payments must be processed through a registered Payment Distribution Agency (PDA).
   3. Beware of “too-good-to-be-true” promises — No counsellor can legally remove a debt-review flag without following the withdrawal guidelines issued by the NCR.
   4. Report misconduct — Complaints can be lodged via complaints@ncr.org.za or directly with DCASA at www.dcasa.co.za.

The Broader Call

DCASA believes this latest NCR alert underscores a deeper need for professionalisation across the credit-industry value chain. Le Grange emphasised that collaboration between registered counsellors, payment distribution agents, credit providers, and the judiciary remains vital to ensuring consumer protection and industry credibility.

“DCASA members operate on the front line of financial rehabilitation,” he said. “We see the stress, the fear, and the misinformation that lead people into bad decisions. As an industry, we must stand together — not only to expose fraud but to educate and empower the public to make responsible choices.”

About DCASA:
Founded in 2007, the Debt Counsellors Association of South Africa (DCASA) is the country’s leading representative body for registered debt counsellors. DCASA works closely with the NCR and other key stakeholders to promote ethical standards, financial education, and sustainable consumer-debt solutions.

Media Enquiries:
dcasa@dcasa.co.za | www.dcasa.co.za