NCR, Credit Ombud sign MoU for better team work
By Philippa Larkin Apr 15, 2021
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JOHANNESBURG – THE NATIONAL Credit Regulator (NCR) and the Credit Ombud said yesterday they had signed a memorandum of understanding (MoU) to facilitate co-operation and collaboration within the ambit of the National Credit Act (NCA) and investigate disputes involving non-bank credit providers, credit bureaux and consumers.
The NCR is responsible for regulating credit providers and is tasked with: carrying out education and research; proposing policies to the Minister of Trade, Industry and Competition; registering industry participants; investigating disputes; and enforcing the NCA.
The Credit Ombud is a voluntary, non-statutory body that has jurisdiction in terms of the NCA. It resolves disputes between the non-bank credit industry and consumers.
The MoU will see the NCR and the Credit Ombud work together in several areas. The main elements of the MoU include:
As an alternative to the NCR investigating disputes involving subscribing members of the Credit Ombud, the NCR shall refer non-bank credit agreement and credit information matters to the Credit Ombud.
The Credit Ombud shall report quarterly to the NCR regarding the resolution of disputes referred to it by the NCR.
Capacity building and training programmes.
Outreach initiatives and credit industry awareness and education.
Research and information sharing.
The services offered by the Credit Ombud are provided free of charge to consumers. Consumers are not bound by a ruling or decision of the Credit Ombud and can refer a matter to the NCR.
“Working together is pivotal to building and maintaining the spirit and objective of the NCA,” the organisations said yesterday.