Press Release: Debt Counselling Is a Last Resort, Not a Savings Tool, CASA Warns Consumers

(Pretoria, 02 February 2026) – The Credit Association of South Africa (CASA), the national industry body representing South Africa’s non-bank credit sector, is calling on consumers to approach debt counselling responsibly and to engage their credit providers as a first step before entering a formal legal process.

CASA emphasises that debt counselling is a vital consumer-protection mechanism for genuinely over-indebted households, but it is not designed as a convenience or cost-saving tool.

“Debt counselling plays an essential role in protecting vulnerable consumers who are in real financial distress,” says Leonie van Pletzen, CEO of CASA. “But it is a formal legal process with long-term consequences. Our message to consumers is clear: if you are experiencing short-term financial pressure, your first step should always be to speak directly to your credit provider. Many providers can offer temporary relief or payment arrangements without triggering the lasting implications of formal debt counselling.”

Introduced under the National Credit Act (NCA) in 2007, debt counselling allows eligible consumers to restructure their debt through an NCR-registered debt counsellor, following a full financial assessment, negotiations with credit providers, and confirmation by the Magistrates’ Court or the National Consumer Tribunal (NCT). During this process, consumers are protected from legal enforcement action.

What Consumers Should Know Before Applying

Before entering debt counselling, consumers should be aware that:

· The process is voluntary and must be handled by an NCR-registered debt counsellor (consumers may request the counsellor’s NCRDC number)

· A full affordability assessment is required, and not all consumers qualify

· A debt counselling flag will appear on the consumer’s credit profile

· No further credit may be applied for until all restructured debt is settled, or only an up-to-date home loan remains

· The process is not free, regulated fees apply

· Consumers married in community of property must apply jointly with spousal consent

· A clearance certificate is issued once all restructured debt is settled and the credit profile flag is removed

“This is not a short-term solution, it is a long-term financial commitment that can affect consumers for years,” van Pletzen adds. “That is why CASA continues to advocate for informed decision-making and ethical, transparent conduct across the entire debt counselling and credit ecosystem.”

Beware of ‘Too Good to Be True’ Offers

CASA warns consumers to be cautious of unsolicited calls, messages, or advertisements promising instant debt relief, reduced interest rates, or guaranteed approval.

Some agents falsely claim to represent the National Credit Regulator (NCR) or fail to clearly disclose that consumers are being placed into a formal debt counselling process.

The NCR does not contact consumers to initiate debt counselling. While initial contact and information-sharing may occur telephonically, the National Credit Act and its Regulations require that debt counselling be formally initiated through a prescribed application process, including the completion of the required forms, a full financial assessment, and formal notification to credit providers and credit bureaus, followed by confirmation by a court or the NCT. Consumers should be cautious of any process that appears rushed, unclear, or based solely on a verbal agreement.

When Used Responsibly, Debt Counselling Works

According to the NCR’s 2023/24 Annual Report, 47,757 clearance certificates were issued to rehabilitated consumers, demonstrating that debt counselling is an effective pathway back to financial stability when managed by ethical, registered professionals and used for genuine over-indebtedness.

“CASA’s role is to protect consumers while also supporting a responsible, sustainable credit market,” says van Pletzen. “Debt counselling works, but it works best when it is used for the right reasons, with the right professionals, and after consumers have first explored direct engagement with their credit providers.”

Final Message to Consumers

Debt counselling is a legal protection, not a shortcut, savings strategy, or convenience tool. Consumers are urged to:

· First speak to their credit providers if they experience payment difficulty

· Use only NCR-registered, ethical debt counsellors

· Be cautious of any debt counselling process that is presented as complete or binding based solely on a phone call or verbal agreement

A full list of registered debt counsellors is available from the National Credit Regulator at www.ncr.org.za or 0860 627 627.

Ends

About the Credit Association of South Africa (CASA)

CASA is South Africa’s leading association representing responsible and professional non-bank credit providers. CASA exists to enable credit providers to thrive and to build a sustainable credit industry that supports economic growth and financial inclusion across South Africa.

CASA brings together ethical and professional credit providers to build a fair, sustainable, and inclusive credit industry, reflecting a broader mandate and renewed purpose to serve the entire credit sector.

It is a member-based, non-profit association governed by an Annual General Meeting, an elected Board, and specialised Board Committees. CASA is registered as a Section 21 Company (1996/001116/08), with MVB Auditors as its auditors and Nedbank as its official banking partner.

About Leonie van Pletzen

Leonie van Pletzen is the Chief Executive Officer of the Credit Association of South Africa (CASA). With 15 years of experience in the industry, Leonie is recognised as a passionate advocate for ethical lending, financial inclusion, and regulatory reform. She brings a wealth of expertise in industry advocacy, corporate governance, stakeholder engagement, and sustainable development.

Leonie has played a key role in shaping policy dialogue between government, regulators, and the private sector, and is an active contributor on various national committees, including the National Credit Regulator’s Credit Industry Forum and the Banking Sector Education and Training Authority. Her leadership is defined by a commitment to protecting vulnerable consumers while ensuring the long-term sustainability of responsible credit provision in South Africa.

For interviews or further information please contact:

Claire Watt

The Friday Street Club

Tel: 082 490 3796

Email: claire@thefridaystreetclub.co.za