Hon Chairperson, allegations have recently emerged regarding the practices of some very unscrupulous debt counsellors and payment distribution agencies, who have allegedly been skimming millions of rands per month from people under the debt review process in terms of our National Credit Act.
It is alleged that these debt counsellors are receiving monthly payments from debtors but, instead of immediately disbursing the same to creditors, are rather holding on to the funds for a period of up to two weeks, in their own interest-bearing accounts. Interest on monies paid in good faith by debtors is said to be nationally in the region of R6,5 million per month.
These actions border on criminal conduct and we are very pleased to hear that the Minister of Trade and Industry is considering appointing a commission to investigate them. We urge the Minister to take this course of action. Thank you.