How to Transfer to a New Debt Counsellor: A Consumer Guide

Being under debt review is an important step towards financial rehabilitation. However, your relationship with your debt counsellor should be one of trust, communication, and support. If you feel that your current debt counsellor is no longer meeting your needs, you have the right to transfer your debt review to another registered debt counsellor.

Be Careful When Approached to Transfer

If another debt counsellor contacts you and encourages you to transfer, take time to do your own research before making a decision.

Common Red Flags

•  “Your debt counsellor is useless – transfer to us immediately.”
  Be cautious of debt counsellors who criticise others without reviewing your file.
• “We can get you out of debt review faster. Clearance gaurenteed”
  No debt counsellor can guarantee an earlier clearance certificate or bypass the legal process.
• “Transfer today, I can give you a better deal”
  Pressure tactics are a warning sign.
• “Don’t worry about the details, just sign.”
  You should always understand what you are signing and why.

Before You Transfer

• Check that the debt counsellor is registered with the NCR.
• Read online reviews and testimonials.
• Ask questions about communication and support.
• Compare a few options before making a decision.

Remember: A transfer should be based on better service and support, not sales pressure. As with any important financial decision, do your research before proceeding.

When Should You Consider a Transfer?

Every consumer’s situation is different, but some common reasons for considering a transfer include:

• You cannot get hold of your debt counsellor despite repeated attempts.
• Emails, calls, or messages are not being answered.
• You need assistance but are not receiving guidance or support.
• You are trying to obtain a clearance certificate and are unsure of the process.
• Your debt review appears to have stalled and you do not know what is happening with your case.
• You have concerns about the quality of service being provided.
• You simply feel more comfortable working with a different debt counsellor.

Remember, debt review is your journey. You should feel informed and supported throughout the process.

What Are Your Rights?

The National Credit Regulator (NCR) has confirmed that consumers have the right to choose their debt counsellor and to transfer to another debt counsellor at any stage of the debt review process.

Importantly:

• You do not need to provide a reason for wanting to transfer.
• Your existing debt counsellor cannot unreasonably prevent or delay a transfer.
• The debt review process continues from where it left off; it does not start over.
• Your new debt counsellor may continue managing your matter once the transfer is completed.

What Information Do You Need to Provide?

When approaching a new debt counsellor, it helps to have the following available:

• A copy of your ID.
• Your debt review reference number (if available).
• Your latest PDA statement.
• Any correspondence received from your current debt counsellor.
• Information regarding your creditors and repayment plan.

The new debt counsellor will guide you through any additional documentation that may be required.

How Does the Transfer Process Work?

The transfer process is generally straightforward:

• Step 1: Choose a New Debt Counsellor

Research and select a registered debt counsellor that you believe can better assist you.

• Step 2: Sign the Required Authority

The new debt counsellor will ask you to sign a Power of Attorney authorising them to act on your behalf regarding the transfer.

• Step 3: Transfer Request Is Submitted

The new debt counsellor contacts your existing debt counsellor and requests the transfer documentation.

• Step 4: Documents Are Exchanged

The existing debt counsellor provides the required transfer documentation and information needed to continue your debt review.

• Step 5: Your New Debt Counsellor Takes Over

Once the transfer is completed, the new debt counsellor continues managing your debt review from the current stage of the process.

Choosing the Right Debt Counsellor

A transfer gives you an opportunity to find a debt counsellor who better meets your expectations. Take your time and do your homework.

Verify Registration

Always confirm that the debt counsellor is registered with the National Credit Regulator.

You can search for registered debt counsellors on the official NCR website:

https://www.ncr.org.za/register_of_registrants/registered_dc.php

Consider DCASA Members

You may also wish to consider members of the Debt Counsellors Association of South Africa (DCASA), who participate in an industry association focused on professionalism and best practice.

Visit:

DEBT COUNSELLOR SEARCH

Read Reviews and Do Proper Research

Before making a decision:

• Read online reviews.
• Look at Google ratings and client feedback.
• Review the debt counsellor’s website and social media presence.
• Ask questions about communication, turnaround times, and support processes.
• Ensure they explain their services clearly and professionally.

Just as you would research a bank, insurance provider, or any important financial service, you should thoroughly research your prospective debt counsellor.

Watch Out for Red Flags

Be cautious if you encounter any of the following:

• Promises that sound too good to be true.
• Poor communication before you have even signed up.
• Pressure to make quick decisions.
• Unprofessional behaviour.
• Negative reviews that reveal consistent service issues.
• Unwillingness to answer reasonable questions.

If something does not feel right, trust your instincts and continue your search.

Final Thoughts

Transferring to a new debt counsellor is your right as a consumer. If you are struggling to get assistance, cannot obtain information about your case, or simply feel unsupported, it may be time to explore a transfer.

The most important step is choosing the right debt counsellor. Take the time to verify registration, read reviews, compare your options, and make an informed decision. A little research today can help ensure you receive the support and guidance you need to successfully complete your debt review journey.