Circular 02 of 2021 – ADR Agents

(February 2021)

This circular, issued by the National Credit Regulator (NCR), addresses the registration and operation of Alternative Dispute Resolution (ADR) Agents within the credit industry. It reaffirms the legislative requirements under the National Credit Act and clarifies that only ADR agents registered with the NCR are authorised to facilitate the resolution of consumer complaints relating to credit agreements.

The circular highlights concerns about entities operating as ADR agents without proper registration and emphasises the responsibility of credit providers to engage only with registered ADRs. It also signals that enforcement action may be taken against non-compliant entities.

Why this matters to you:

For credit providers, this circular clarifies compliance obligations and reinforces the importance of verifying ADR registration status. For consumers, it ensures that disputes relating to credit agreements are handled by properly regulated and authorised entities, promoting fairness, accountability, and efficient dispute resolution within the credit framework.

NCA-amendment-Regulations-March-20151.pdf

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