How to Choose a Debt Counsellor in South Africa (and the Red Flags)
OurPower - Last verified 2026-08-15 against the National Credit Act 34 of 2005 and its regulations
Step one, before anything else: verify registration
Debt counsellors must be registered with the National Credit Regulator. The NCR publishes a public register of registered debt counsellors, and you can phone the NCR on 0860 627 627 to confirm a name or registration number.
Do this before you pay anything, sign anything, or send documents. A registration number printed on a website or a WhatsApp message is a claim. The register is the check. As at 15 August 2026 the NCR's own homepage reported 1,586 registered debt counsellors, so there is no shortage of legitimate practitioners to choose from.
Questions worth asking before you sign
- What is your NCR registration number, and may I have it in writing? Then check it against the register.
- May I see the fee addendum to Form 16 before I sign anything? The NCR guideline requires the applicable fees and services to be set out in an addendum, explained to you, and signed by you.
- What will my restructuring fee be, in rands, including VAT? It should be the lesser of your first re-arranged instalment or the guideline cap - not a flat figure plucked from the air.
- Which Payment Distribution Agency do you use, and what is its monthly fee? That is separate from your fees.
- Will my matter go by consent order or referral to court, and what will the legal costs be either way? Consent order legal fees are set at R750 in the guideline; anything beyond that must be separately negotiated and supported by the attorney's pro-forma invoices.
- What date do you count as my application date, and what is 60 business days from it? That is your refund deadline if proposals are not submitted or the matter is not referred.
Red flags
- Not on the NCR register, or evasive about the registration number.
- Asks for a large upfront payment before any assessment has been done. The application fee is R50, prescribed by Schedule 2 of the Act.
- Will not show you a written fee schedule before you sign, or wants the Form 16 signed without going through the fee addendum.
- Promises a specific outcome - a percentage reduction in your debt, a guaranteed instalment, a guaranteed timeline. The outcome depends on your credit providers and on a court. Nobody can promise it upfront.
- Tells you debt review will clear your debts. It re-arranges payments. It does not write off what you owe.
- Offers you 'debt intervention' as an available process. Section 86A was legislated in the National Credit Amendment Act 7 of 2019, but its commencement depends on a presidential proclamation that had not been made as at 15 August 2026, so it cannot currently be applied for. This one can change by proclamation without much publicity - rather than assuming bad faith, confirm the current position with the NCR on 0860 627 627 before you pay anyone for it.
- Discourages you from contacting the NCR, or from checking anything independently.
- Goes quiet after taking your money. Diarise your 60-business-day date and act on it.
The refund rule is your main protection - use it
The NCR fee guideline says that if a debt counsellor fails to submit proposals to your credit providers, or to refer the matter to the Tribunal or a Magistrate's Court, within 60 business days of the date of your application, they must refund 100% of the fees you paid, excluding the application fee.
Write your application date down. Count 60 business days. If nothing has been filed by then, you have a refund claim and a reason to phone the NCR. This single deadline is the most effective protection consumers have against a debt counsellor who takes the fee and stalls, and almost nobody is told about it.
If it goes wrong
Debt counsellors are registered with, and answerable to, the NCR. Complaints go to 0860 627 627 or complaints@ncr.org.za. The NCR's physical address is 127 - 15th Road, Randjespark, Midrand, 1683.
For two specific failures the Act gives you a route to the National Consumer Tribunal instead. If a debt counsellor refuses or fails to issue your clearance certificate when you are entitled to it, section 71(3) lets you apply to the Tribunal to review that decision. If they fail to file the certified copy with the bureaux, section 71(4)(b) lets you file it with the NCR yourself and lodge a complaint.
Keep every document, every proof of payment, and a note of every call. It is dull and it is what makes a complaint succeed.
Frequently asked questions
Are all debt counsellors the same price?
They work from the same NCR fee guideline, and the largest fee - the restructuring fee - is the lesser of your first re-arranged instalment or the cap, so it is driven by your own numbers rather than by the practitioner. What varies is service quality, how quickly the matter is filed, and which PDA they use. Ask for the rand figures in writing either way.
Should I use a big national firm or a local counsellor?
Registration status matters more than size. Check the register, ask the questions above, and judge by whether the answers are specific and in writing.
Can a debt counsellor be paid by my creditors instead?
No. Section 86(3)(b) says a debt counsellor may not require or accept a fee from a credit provider in respect of your application. If one tells you their service is free because the banks pay them, that is a problem.
Can I change debt counsellors mid-process?
It is possible but it has consequences, including for fees already paid and for where your file sits in the process. Raise it with the NCR before you move, and note that withdrawing after the restructuring stage triggers a fee of 75% of the restructuring fee under the guideline.
Related guides
Check anything here with the regulator
OurPower is not a debt counsellor and is not registered with the National Credit Regulator. This page is general information about South African debt review law, not financial, legal or debt counselling advice. Debt review is not the right answer for everyone. Only an NCR-registered debt counsellor or a court can determine whether you are over-indebted. Legislation verified 2026-08-15. Sources: National Credit Act 34 of 2005 (as amended), the National Credit Regulations, the NCR Debt Counselling Fee Guidelines, and the NCR.