September 11, 2007 By Tonny Mafu Johannesburg
Debt counsellors might have to wait another three months before knowing how much they could charge clients, the department of trade and industry (dti) said yesterday. Debt counsellors have been waiting for the government to decide on the fees they can levy on their clients since the introduction of the National Credit Act in June.
A recent snap survey by Business Report found that some debt counsellors had invested up to R50 000 in setting up offices, but could not recoup costs as they could now only charge R50 a consultation.
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Find out moreInitially, fees were expected to range from R500 to R1 500. The failure to finalise fees has thwarted one of the act's core objectives - ensuring consumers receive professional advice on debt management.
"We are in the process of publishing regulations on debt counselling," said Fungai Sibanda, chief director for policy and legislation at the dti. These will be available for public comment this week.
