Pretoria - The National Consumer Tribunal has cancelled the registration of two non-compliant debt counsellors.
This was in response to applications brought by the National Credit Regulator (NCR) against Petrus Martinus Ferreira trading as Ferreira Debt Counsellors (FDC) and Ralph Zulu of GNR and Associates.
The tribunal was established to adjudicate matters referred by the NCR or complaints related to allegations of prohibited conduct.
According to the NCR, Ferreira's registration as a debt counsellor has been cancelled and he will not be able to conduct business as a debt counsellor in the future.
The tribunal made the decision to cancel Ferreira's registration on 10 March this year.
"Both these debt counsellors were found to have repeatedly contravened the National Credit Act (NCA) and their conditions of registration," said the NCR.
The Tribunal found that FDC had contravened the National Credit Act in a number of ways in that it failed to comply with administrative duties of debt counsellors as well as not submitting debt review proposals on behalf of his clients to the affected credit providers among other things.
"The Regulator found that Ferreira not only failed to maintain adequate records and keep relevant copies of documentation in order to comply with the National Credit Act, he also had set up a close corporation as a payment distribution agent, despite this not having been approved by the NCR," it said.
Ralph Zulu was also found not to have adhered to several NCA and regulatory requirements as well as the keeping of proper records.
The judgment for cancellation of Zulu's registration as a debt counsellor, suspended for a period of one year, ending February 2011, was handed down on the 26 February 2010
This is on condition that he does not contravene the Act or his conditions of registrations.
"Debt counsellors play a key role in the debt review process, therefore the NCR will continue to closely monitor the behaviour of all registered debt counsellors and other registrants in terms of the NCA to ensure that all parties are protected.
"We cannot allow already debt stressed consumers to be exploited by the very people that must assist and protect them," said the NCR.
