SCAMMED UNDER DEBT REVIEW

What to Do if You’ve Been Scammed and Placed Under Debt Review Without Your Consent

Falling victim to a scam is a stressful and disheartening experience, especially when it involves something as serious as being placed under debt review without your permission. Unfortunately, scams like these are becoming more common, with fraudsters exploiting individuals who may be financially vulnerable or unaware of their rights. This guide will help you understand your rights, the steps to take if you’ve been scammed, and how to protect yourself in the future.

What Is Debt Review?

Debt review, also known as debt counselling, is a legal process in South Africa aimed at helping over-indebted individuals manage their debt. Once you’re under debt review, a debt counsellor negotiates with creditors on your behalf to create a manageable repayment plan. While this process is beneficial for those genuinely in need, fraudulent activity can occur when individuals are placed under debt review without their knowledge or consent.

Signs You’ve Been Scammed

• Unexpected deductions: Regular deductions appear on your bank statements for debt counselling fees, but you never signed up.
• Unresponsive counsellor: You cannot reach the debt counsellor, or their contact details lead to dead ends.
• Credit access blocked: Your creditors inform you that you are under debt review when you apply for new credit.
• Suspicious communication: You receive calls or emails from people claiming to offer debt review services, pressuring you to sign up immediately.

Steps to Take If You’ve Been Scammed

1. Verify Your Debt Review Status

Visit the National Credit Regulator (NCR) https://www.ncr.org.za/register_of_registrants/registered_dc.php website or call their offices to check if you’ve been placed under debt review. Alternatively, request a credit report from a credit bureau to confirm your status.

2. Gather Evidence

Document all suspicious activities, including:

• Copies of emails or SMS communications with the alleged debt counsellor.
• Proof of unauthorized deductions from your bank account.
• Records of any agreements or contracts you may have unknowingly signed.

3. Lodge a Complaint with the NCR

If you confirm that you’ve been fraudulently placed under debt review, lodge a formal complaint with the NCR. Here’s how:

• Contact the NCR: Call them at 0860 627 627 or email them at complaints@ncr.org.za.
• Submit a Complaint Form: Download and complete the complaint form from the NCR website. https://www.ncr.org.za/index.php/departments/complaints
• Attach evidence of the scam, including your ID copy, proof of deductions, and any correspondence.

4. Report to the National Financial Ombud Scheme

You also have an option to escalate the matter to the NFO https://nfosa.co.za/complaints-process/. This body has the authority to review cases and overturn fraudulent debt review orders.

5. Notify Your Bank

Contact your bank to stop unauthorized deductions immediately. Request a reversal of the payments, if possible.

6. File a Police Report

Report the scam to your local police station to ensure there is a legal record of the fraud. This is essential if the case requires criminal investigation.

How to Avoid Being Scammed

Fraudsters are often sophisticated in their methods, but staying vigilant can protect you from falling victim. Here are a few tips:

1. Verify Credentials

Before engaging with any debt counsellor, confirm their registration with the NCR. You can do this by checking the NCR website or calling their offices.

2. Avoid Sharing Personal Information

Never share your ID number, banking details, or payslips with anyone unless you’ve verified their legitimacy.

3. Be Wary of Pressure Tactics

Legitimate debt counsellors will never pressure you into signing an agreement on the spot. Take time to research and understand the process before committing.

4. Monitor Your Bank Statements

Regularly review your bank statements for unauthorized deductions. Report suspicious transactions immediately.

5. Request a Credit Report

You are entitled to one free credit report per year from any registered credit bureau in South Africa. Regularly check your report to ensure no unauthorized activity is listed.

Conclusion

Being scammed and placed under debt review without your consent can be distressing, but by acting quickly and following the right channels, you can resolve the issue. Always verify the legitimacy of debt counsellors and stay informed about your financial rights to avoid falling prey to fraudsters.

If you’re ever in doubt, reach out to the NCR or consult a trusted financial advisor for guidance. Remember, knowledge and vigilance are your best defenses against scams.

We have a list of Registered Debt Counsellors and Members of the Association that can provide debt review services, members need to adhere to a code of conduct to ensure they practice are legitimate and trusted: https://www.dcasa.co.za/debtcounsellor-search/ . If there is a complaint against a member you can reach out to dcasa@dcasa.co.za for investigation.