Debt counselling abbreviations and what they stand for
Debt counselling can be intimidating for anyone, especially considering the financial state that you are in when you reach the point when you need debt counselling. This can be made worse when terms and abbreviations are flung about that you don’t understand.
This guide looks at some debt counselling abbreviations and terms and what they mean.
CCA:The Consumer Credit Association. This is the previous name of the CPA.
Consumer: Under the NCA the term consumer refers to the person to whom credit is granted, money is loaned or goods and services are sold, as well as a mortgagor, borrower, lessee under a lease agreement, or a guarantor under a guarantee.
CPA:The Credit Providers Association. According to the website, this “is a non-profit association representing all credit providers who voluntarily choose to become a member of the Association. The CPA provides a self-regulatory framework by which consumer credit data is shared between all the members of the Association. The cornerstone of the CPA is reciprocity: a member has to share data in order to be able to receive data.”
DCASA: This stands for the Debt Counsellors Association of South Africa. It is a professional body that represents debt counsellors in South Africa.
The website states: “All DCASA members subscribe to a Code of Conduct, ensuring high ethical standards that will maintain the integrity of the Debt Counselling industry.”
Debt: This refers to money that a person (debtor) owes to another person, company or institution (creditor).
Debt Counsellor:According to Legal Wise, a debt counsellor is “a person who assists a consumer, in terms of a credit agreement, who cannot meet his/her monthly payment obligations, by negotiating and restructuring a new payment plan.”
A debt counsellor is the person who will help you manage your debt and work out a plan for you to repay it.
If you want more information on the debt counselling process, click here.
Or for ten questions you should ask your debt counsellor, click here.
NCA:The National Credit Act. According to the Act, its purposes “are to promote and advance the social and economic welfare of South Africans, promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market and industry, and to protect consumers.”
NCR:The National Credit Regultor was established under the NCA and “is responsible for the regulation of the South African credit industry.”
NPDA: The National Payment Distribution Agency.
PDA: This stands for Payment Distribution Agency. As debt counsellors are prohibited from collecting and distributing payments to credit providers after a consumer’s debt has been restructured, there are accredited PDAs with the NCR who are responsible for collecting and distributing these payments.
For more information on your rights when it comes to debt, click here to view the National Credit Act.