# Regulatory Compliance Category > National Credit Act Forum >  New agreement on debt counselling process

## Dave A

New guidelines may make debt counselling more effective. 



> A code of conduct between credit providers and debt counsellors, released this week, is expected to improve the debt-counselling process significantly and possibly puts South Africa at the forefront globally in dealing with over-indebtedness.
> 
> Debt counsellors will input the clients' information into a programme including the debt information and what the clients can afford. The programme creates a recommended repayment programme that allows consumers to pay off the debts within a set framework and treats all creditors fairly, especially in terms of "sacrifice of yield" where creditors waive interest or charge a lower rate on the outstanding loan.
> 
> If a suitable repayment plan cannot be found because of affordability then the person will not be able to undergo debt counselling and will have to be declared insolvent.
> 
> The banks have agreed that this repayment plan, based on the agreed rules, will be accepted and they will not take the matter to court. But the consumer has to adhere to this payment plan or all protection will fall away, including the lower interest agreement.
> 
> The banks have borne the cost of the development of the programme and the repayment rules were agreed to by the National Credit Regulator and the Debt Counselling Association of South Africa.
> ...

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## helpwithdebt

Hi Dave
Very good new rule to be implimented. The problem with most clients are that they want to lower the repayments to an absolute minimum regardless of the term.
It is a very wise move for any registered debt counsellor to contact an inslovency practitioner for assistance with the "surrender of estate clients"

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## Dave A

What I really like about this is it gives some consistency to the debt counselling process. No more flogging a dead horse, hoping for miracles or denying the inevitable.

And also less fickle behaviour on the part of banks - although with some of the stories I'm hearing of late, that part might not have actually come to pass just yet.

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