A Win for the Industry: Jumbo Loans and DCRS

The Debt Counsellors Association of South Africa (DCASA) views recent progress within the Debt Counselling industry as a significant win for all stakeholders. Over time, as credit products have evolved, some agreements did not fit neatly into the Debt Counselling Rules System (DCRS). This created challenges in providing workable and fair solutions for consumers and credit providers alike.

One of the biggest breakthroughs came when Vehicle and Asset Finance (VAF) accounts were successfully included in the DCRS after extensive discussions between DCASA, other associations, and the Banking Association of South Africa (BASA). This adjustment has already delivered positive results, with proposals now solving more effectively.

However, another hurdle soon emerged: what has been referred to as “Jumbo Loans”—unsecured loans extending beyond 60 months. These products fell outside of the DCRS framework, making them extremely difficult to restructure. DCASA and fellow industry bodies raised these concerns directly with BASA and the banks, highlighting the urgent need for workable solutions.

Following feasibility studies conducted by Payment Distribution Agents (PDAs) and BASA member banks, it was agreed that Jumbo Loans must be formally addressed. BASA escalated the matter to the National Industry Steering Committee (NISC), which has since granted provisional funding to explore practical solutions for incorporating these loans into the DCRS framework.

Looking ahead, 2026 is set to be a pivotal year for the industry. Collaborative efforts will focus on developing solutions and implementing the necessary system changes. While challenges remain, DCASA is encouraged by the constructive response from the banks and optimistic about the progress being made.

– Vanessa Johst (Operations Manager DCASA) 23 September 2025