25 September 2026
Dealing with debt can be overwhelming, and reaching out for help is an important step towards regaining control of your finances. However, make sure the company promising to help you is legitimate. Credible debt review companies follow a regulated process designed to protect consumers. Be very cautious if anything sounds too good to be true.
In this blog, UASA Financial Services explains common scams and red flags that consumers must watch out for when engaging with debt review companies.
Watch out for scam calls
One of the biggest warning signs is an unexpected phone call from someone claiming the National Credit Regulator (NCR), your bank, or another financial institution referred you to them. Legitimate debt counsellors do not randomly contact consumers or obtain their personal information without consent. Don’t ever share your credit report without a reason.
Your credit report records your credit history and includes personal information, including your address, employment details, credit accounts, and insurance information. A legitimate debt counsellor will always explain:
• Why they need to access your credit report.
• How the information will be used.
• Ask for your explicit permission before requesting it.
If someone pressures you into giving consent without explaining why they need it, walk away.
If a promise sounds too good to be true, walk away
Debt review is designed to make your debt more affordable, but it will not disappear. If someone gives you a repayment amount within minutes, without reviewing your income, expenses and credit agreements, that is a major red flag.
Verify company legitimacy
One of the easiest ways to protect yourself is to verify that your debt counsellor is registered with the National Credit Regulator. Ask for their NCR registration number, often called their DC number, as well as their full registered name. Use these details to search the NCR’s public register and confirm they are authorised to provide debt counselling services. If someone refuses to provide these details or avoids the question, consider it a warning sign.
Trace your money
Legitimate debt review companies do not ask you to pay them directly.
Instead, legitimate debt review uses a Payment Distribution Agency (PDA), which distributes your payments to your credit providers and provides monthly statements showing exactly where your money has gone. A legitimate debt review process should never feel rushed. When you meet with a debt counsellor, you should expect them to:
• Explain the debt review process clearly
• Review your income and expenses in detail
• Assess all of your credit agreements
• Obtain your consent before proceeding
• Answer your questions openly
• Provide copies of the relevant documentation
You should never feel pressured into making an immediate decision. Debt review is not a quick fix. It is a legal process that helps over-indebted consumers regain control of their finances. This means you must follow certain steps to protect yourself.
If someone promises instant results, guaranteed savings or debt write-offs, take a step back and verify their credentials before sharing any personal information. The best protection against scams is understanding how legitimate debt review works and choosing a registered debt counsellor who is committed to acting in your best interests.
If you need financial assistance, contact UASA to learn how Debt Rescue, a UASA Financial Services (UFS) service provider, can help you get back on track and reach your financial goals.
Ref: www.debtrescue.co.za www.uasa.org.za