Debtfree DIGI Oct 2012 theDCI Special Edition

South Africa’s debt counselling magazine

1st in SA Debt Counselling Industry Life Cover For Over Indebted

October 2012 http://www.thedci.co.za/debtfree.php

SECURITISATION Why You Need To Know If your Bond Is Securitised

Message from Deborah Solomon It has been one year since going live on theDCI and to my amazement, I still receive daily emails from DCs asking me: what is the catch or how can theDCI be free to all DCs? My answer is not complex nor does it have fine print.

The simple truth is I care enough to care about others and am determined to build this into our industry culture.

Some may not understand it, others assume there must be a catch, a few think I am just as devious as they are.

The facts speak for themselves: No money has been taken from any DC to belong to theDCI. All information is transparent and shared openly. theDCI was built and given to every DC because there was nothing available for them. It was something that was needed, but those in the know could not be bothered to do. It was built as a safe haven for DCs to confide in each other and to support one another. theDCI fought for you and for millions of South Africans not because we were not one of the 3 "Chosen Ones", but because we believe in the NCA and YOU. In the process of fighting for consumers rights over 8 million Rands worth of free positive press was generated for our industry. While doing so, we did not punt one DC or company as others always do, instead we punted EVERY DC and the industry as a whole. theDCI believe that true change starts from within, not in trying to save face. We need to promote everyone and not only a selective few. theDCI is a family who takes care of each other. We are supportive of each other and lend an ear when guidance is needed. No concern or problem is too big or small. We listen and each voice is heard. We value the strength of each DC's experience. Our actions have shown this. Our words "you now have a voice, united we stand" were never empty for we accomplished what no one else would dare. theDCI leads the way. The rest only imitate and follow.

We need your guidance to lead this industry into the new era of success. If you care enough to care, we need your support in helping us to make a difference to 9.3 million South Africans in need.

We now have a voice, United We Stand.

CONTENTS 7 Editors notes 9 News 14 I got a scary SMS 18 Living on less 20 Contract killing 22 Interested in interest?

26 Debt Vader 32 Securitisation 34 Serivce Directory

wellness@thedci.co.za

EDITOR’S NOTE The Rand is taking a pounding, the recent upheaval in the mining industry and transport industries are effecting the JSE and the economy.

Petrol is up and food is following. It all seems so very financially depressing. Fortunately you don’t have to deal with all of that. All you have to focus on is yourself and your family. Dealing with your debt is the first step and if you are taking strain then now is the time to talk to a Debt Counsellor. If you are already under debt review then please communicate with your DC about any challenges you face and start to make plans to stay within your budget now.

This month, we get back to basics with a look at interest and how it works for (or rather against) you in Chartered Accountant Wayne Coetzee’s interest...ing article. We also consider what to do when you get a scary sms, how to still have fun while living on less (in our new living on less section) and as always we have lots of industry news too. We finally got Debt Vader to stop ranting and raving and we rather look at a very particular type of consumer who might enter debt review and consider what can be done to help them. All in all the magazine is packed with insights and advice for all.

As a final thought: the end of the year draws closer and your debt may yet still seem to loom large. Keep chipping at it, you will get there.

Many consumers find the end of the year a difficult time to maintain their debt repayments.

We urge you to keep making those payments - even if its hard work. Just a slight slip-up can make things even more complicated and have very negative consequences. So buckle down and keep on heading to the oh so sweet goal of being totally debt free!

INDUSTRY

CONSUMER

NEWS FLASH For daily debt counselling news visit www.debtfreedigi.co.za

NCR CONSIDER DEBT COUNSELLOR CODE OF CONDUCT

phrase “or other association” after reference to DCASA in the code. This was not met with the success the NCR had hoped as many DC’s still felt that a code that prevents some Back in 2009 the NCR found that there were South Africans from accessing the benefits some hick-ups in the then new debt counselling of the NCA and demanded use of certain industry. At that time, they appointed a task service providers software and services was team to investigate and report on these issues. unacceptable. Now with the recent scrutiny The Task Team did a report, and what’s more, the NCR has been giving to all things NDMA they came back with suggestions on ways to and DC associations, it seems that the NCR has deal with these problems. One suggestion decided to call on DC’s to make suggestions as they put forward was that industry codes of to what code of conduct they would like to see conduct in regard to debt review be put in created. The NCR called for all DC’s to submit place. Credit providers through the National comments and suggestions by mid-October Debt Mediation Association (NDMA) put such 2012 and will then see if there is room for a a code into effect and some Debt Counsellors common code of conduct. It is unclear when at the Debt Counselling Association of South any announcements will be made about the Africa (DCASA) followed suit. Soon afterward subject, but Debtfree DIGI will report on it the there was an outcry from Debt Counsellors moment anything happens. as the NCR began to insist that DCs sign the code of conduct. The opposed parties did not want to sign for a variety of reasons. The THE DCI FORUM 1 YEAR OLD Main reasons were (1) the opposed DC’s did not belong to the DCASA (2) The NCA never THIS MONTH called for such a code (3) the code proposed The Debt Counselling Industry (theDCI) by DCASA called on DC’s to adopt steps and an online forum and service provider to processes that go beyond what the NCA asks consumers, credit providers and DC’s - brain for. Many DC’s felt that the proposed Task child of Debt Counsellor (and consumer) Team voluntary measures are illegal and do Deborah Solomons is now officially 1 year not conform to the purposes of the NCA. In old. TheDCI made a big splash back in 2011 an attempt to please all parties, especially the when it launched it’s online forum for Debt new association for DC’s called the Alliance of Counsellors. Unlike other forums theDCI has Professional Debt Counsellors (AllProDC) and a secure web-forum for only those directly those unaffiliated DC’s, the NCR added the involved with debt review. The forum quickly

NEWS CONT. became popular. So much so, that other bodies such as AllProDc and DCASA launched their own online forums (which are open to the public and creditors as well). TheDCI is still the most popular and active industry forum around, with numerous discussions happening daily about industry challenges and victories.

TheDCI features a very accurate list of DC’s country wide and helps consumers to locate DC’s who are still practicing (unlike the NCR database which is... less accurate). TheDCI has also been engaged in a series of positive press releases about the debt counselling industry.

Recently theDCI was thrust into the spotlight when founder Deborah Solomons demanded that the NCR investigate the proposed NDMA VDMS project. The NCR investigation revealed many breaches of the NCA and the project was shut down. Many feel this was a great victory for consumers and DC’s alike. Now theDCI are leading the charge against banks who are campaigning to try sell the homes of debt review consumers. TheDCI is beginning a class action suit against banks who are now going back on their previous offers of help to consumers (even when these consumers have already been to court and a magistrate has given them a debt restructuring court order).

It is impressive to see what theDCI has done in it’s first year and the following year looks to be equally as exciting.

the National Credit Regulator (NCR). The NCR ordered all parties involved in the proposed voluntary debt mediation project to scrap the project and halt any involvement they might have in the pilot project. Since then the NDMA have been quite vocal in the press about how they do not agree with the NCR and have been casting the NCR in the role of the baddy, not wanting consumer to get help. They have also continued to make comments focussed on the problems which face debt review rather than the benefits. This seems to be in a drive to say that VDMS would have been better if only the NCR were not so nasty. The NCR have taken a firm stance in regard to the canning of the VDMS project and have indicated that they do not want the NDMA to try find ways to make it work. Rather they want to see the NDMA help make debt review work smoother and encouraging cooperation with debt review by their members.

ALLPRODC AGM 1 YEAR ANNIVERSARY

South Africa’s second largest Debt Counsellors association namely the Alliance of Professional Debt Counsellors (AllProDC) are celebrating their 1 year anniversary and hosting their first annual general meeting (AGM) in November.

AllProDC has a strong presence in the Western and Eastern Cape as well as a smaller presence in KZN, Gauteng and Mpumalanga. Their NDMA VS NCR RE: VDMS membership has been slowly growing over Recently a project instituted by the National the last 12 months since their official launch.

Debt Mediation Association (NDMA) at the Many of the original members came out prompting of the Banking Association of South of the now famous DCASA Western Cape Africa (BASA) called VDMS or Voluntary Debt committee “storm out” but their vision for debt Mediation was declared illegal and stopped by counselling according to the NCA has met with

approval from debt counsellors country wide. the practices of big creditors (including some AllProDC have a popular online forum which who operate in Marikana) such as FNB, African discusses industry issues and allows DC’s to Bank and Capitec. exchange advice. Recently they have been holding monthly workshops in various areas to help DC’s and attorneys improve their level NCR INVESTIGATE of service. Their AGM will be held at the Parow IRREGULARITIES AT Golf Club in Cape Town on 23 October at 10 VEREENINGING MAG COURT am.

Zweli Zakwe has said that the NCR are busy with an “investigation which involves a big credit provider,[where]there is a pattern that has MARIKANA PRESS COVERAGE come to light, there are credit providers who go SPURS NCR TO INVESTIGATE out of their jurisdiction, out of the jurisdiction of where the consumer lives to a particular court LOCAL CREDITORS In the wake of the riots and deaths at Marikana where it appears to be easy to obtain garnishee the eyes of the nation turned to that area and orders...the question that comes to mind [is] many people were wondering what is being why choose a particular court? You cannot done to help improve the situation. It seems that be living in Johannesburg, working in Soweto the NCR were moved to shift their “Operation and then you find that the garnishee order Blitskrieg” to the area in response to concerns. was obtained in the Vereeniging Magistrate’s Raids on the properties of the approximately Court. That’s irregular.”

14 local creditors were launched. The NCR and DTI were surprised to see the large amount of creditors operating in such a small community.

NEXT PAGE 14 It seems they were right to bring their investigation to the Marikana area as almost all of the credit providers in the area were found to be breaking the law. Creditors in the area have been charging excessive interest rates (above that allowed by the NCA), retaining peoples bank and credit cards to enable them to make withdrawals for payments of loans, demanding PAGE 20 consumers pin codes, holding consumers ID books as well as granting consumers who cannot afford loans “recklessly”. The NCR have now referred these creditors to the NCT who will impose fines and arrange for consumer to be refunded (in most cases). The NCR have indicated that they are also now investigating

SCARY SMS

CONTRACT KILLING

CONSUMER

I Got a Scary SMS Dear Nedbank client, note that your Debt Counsellor has withdrawn your Debt Review application, you must get a new DC within 20 business days.

Pls call 0860 109 279 Ref: ***************

If you have ever received a threatening sms you will know it can send you into a flat panic.

Your mind begins to race and doubts about your debt review can quickly surface. The sms may threaten legal action that you can ill afford or it might say things like your debt review is cancelled. Panic stations!!!! Now what?

Recently a number of Debt Counsellors (DCs) have been saying that their consumers are being harassed by certain creditors. These creditors are calling, visiting and sms-ing consumers even though they know the consumer has applied for debt review or may already have a debt restructuring court order.

This is, of course, is in bad faith and shows a blatant disrespect for the consumer, the debt review process and the National Credit Act. Consumers who are the target of such harassment are urged to speak out. Complain to the creditor itself, complain to organisations which represent creditors such as the NDMA and complain to the relevant ombud if all these other ways fail. Your DC can advise you on how to do so.

One example given to Debtfree (by a DC on behalf of his consumer) is where Nedbank sent the consumer a scary sms in May 2012 saying that the DC had withdrawn from the process.

The DC in question strongly denies having sent out any such withdrawal notice to Nedbank (an 17.4). Also the DC says that Nedbank had not even issued a 86(10) ‘we don’t want to help you; we want to sue you’ letter. The DC claims that this sms is supposedly just one of a bulk sms that went out to many consumers under debt review.

1) Don’t Panic!

This is probably the most important step.

Remember that you might be just one of lots and lots of people getting an sms sent out by a computer (not a person who actually knows your case). The SMS might actually not apply to you at all. More than that an sms is simply an indication that may be there is something your It is possible for consumers to receive sms’ DC can help you look into and sort out. incorrectly. In some cases, one department at a large credit provider might simply not 2) Contact your DC rather than replying to or know what another department is doing. In contacting the number on the sms. If you start other cases bad programming of a computer to engage with the credit provider you might may result in the computer simply seeing the accidentally be drawn into making promises consumer being ‘behind’ on payments and you cannot keep. You cannot promise then send them a message without realising something on the phone when you have a that they have entered debt review. It is matter sitting at court before a magistrate who speculated that in other cases a creditor might could change things however they see fit. Also just be “trying his luck” as the saying goes. replying to the number shown may leave you They might send out scary sms’ and hope that open to scams and con artists. Beware! Rather contact your DC (maybe with an email) to let consumers react and call them. them know about the sms and it’s contents.

A more sinister thought is that such an sms If it is serious they will soon inform you and might not actually be from the creditor appropriate action can be taken. themselves. It might be from a 3rd party who is trying to get a consumer to pay money over 3) Make a record of the sms. to them rather than the creditor. Consumers The sms may be part of a harassment should be very cautious when a caller says they campaign against you by a particular creditor. work for “ x Bank”. It might be wise to ask for If you later intend to take action against them documentary proof when contacted by phone (legal action) a detailed record of all such bad or sms in regard to collecting money, especially behaviour on the part of the creditor will be where a new bank account number is given for needed. Remember you might lose or damage your phone so it is best to write these things payments to be made to. down.

Perhaps in the example mentioned above, the Nedbank sms was simply sent by mistake. Thus all things considered, when you receive a sms it is good not to fly into a flat spin, but rather calmly take the below mentioned steps: If this is the case, then Nedbank have seriously overstepped the mark. They would be in contravention of all sorts of Acts including the Consumer Protection Act. It would certainly be outside the spirit of the NCA and the goal of assisting to consumers deal with their debt responsibly.

Sequestration enquiries are moving to a new high with many debt counsellors moving clients from the debt review process through to a sequestration process.

The first warning sign for most clients in debt review is when one can no longer afford their monthly debt review repayments. The second warning sign is when all other living expenses have been cut, yet the budget set cannot accommodate even a R50 increase in living expenses. With the recent petrol and electricity hikes and still more on the cards, you need to have at least around 5% room for movement in your budget. Truthfulness with your debt counsellor will help you not to set yourself up for failure further down the line. In debt review, you must make your monthly repayments without interruption. A single month’s default can result in a termination that would be very hard to have re-instated in court.

Empower yourself by asking for advise when it is needed. A consultation with a good sequestration attorney will not cost you even one cent.

Sequestration can end the nightmare but it’s not always the solution as you can be too poor even to be sequestrated. What does work for everyone is proper professional advice before desperation sets in.

Sequestration Specialist Gauteng and Surrounds Call Diane Lodewyks 011 025 5440/1/2 www.lodewykslaw.co.za

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When you sell a man a book you don’t sell him just 12 ounces of paper and ink and glue, you sell him a whole new life.

Christopher Morley

LIVING ON LESS Pimp your brain When under debt review, money is tight. Your Debt Counsellor will have given you a strict budget figure to work with and sticking to that figure can be a challenge. Often what happens is that because money is so tight you have to miss out on a lot of fun things that you might have done before. However being under debt review does not mean that life needs to come to grind to a boring halt and relaxing and good times go out the window.

Our lives are full of stress and aggravation during the work week. The phone never stops ringing and people are constantly demanding things of us. We struggle to get old work done because of new emails and demands from clients. Wouldn’t it be nice to find a moment of quiet every now and then and just unwind?

Reading can do that for you, find a comfortable spot at home and take some time for yourself.

You remember books don’t you? Its like a Kindle, but with only one story loaded...oh and its a lot cheaper too. True, buying new books from a book store can be pricey so...don’t.

There are tons of second hand book stores out there which charge a pittance for great books.

By joining a local library (which normally will cost you a small once-off joining fee) or asking your friends if they have books for you (which will cost you nothing), you can spark your imagination and get some relaxation all in one.

To much of a tough guy to read a novel?

If you are missing DSTV (a victim of your cruel, For some, reading is a passion, for others a unfeeling Debt Counsellor) well, now you burden. So it really depends on your personal can settle down with a warn cup of coffee (or preferences, but as Charlie Jones once said milo) and be swept off to far distant vistas and “You’re the same today as you’ll be in five years engage your imagination. except for the people you meet and the books Suggestions: you read.”

Try: Sun Tzu’s The Art of War or the very helpful Secrets of lock picking.

Why not learn more about the industry you work in and improve in your skills? Many online resources feature free university text books for download.

CONSUMER

go on... become a contract killer!

When most consumers enter debt review, they have several contracts active for various services. For example they might have a cell phone contract (or several) and a gym contract.

At the time of the debt review it is normally impossible for the consumer to get out of these contracts. Normally the review is concluded in a very short period of time and the contracts are normally over 12 or 24 months. As a result normally the Debt Counsellor will included such contracts into the consumers budget section when making proposals to creditors and later to the court itself. When the court order is then granted the repayment amount is set as is the consumers monthly running costs.

Consumers are encouraged to stick closely to their budget and even save funds if at all possible or budgeted for.

Over time consumers might begin to feel the pinch as the price of food. electricity and fuel increase. What can be done to help consumer alleviate the pressure of rising running costs?

One area that can be looked at is those abovementioned contracts. Over the course of

the debt review, it may be that the time period of the contract is now fulfilled. This means that the consumer can hand in notice to the service provider and cancel the service without any penalties or early cancellation nonsense. If this is true, then consumers can effectively free up more funds to cover their living costs.

Normally a short notice period is needed and then the contract can be killed. Consumers can get rid of unnecessary extra phone contracts and can switch to exercising (i.e. Body Rock) at home. In many cases the cost of similar services will have dropped and these services can be paid for (for less) on a month to month basis.

So go on... become a contract killer!

CONSUMER

Interested in interest?

You need a loan. So you go to a credit provider and borrow R100. They tell you the terms of repayment are over 6 months, and at a 10% Interest rate. They work out your monthly repayment to be: R17.50 per month for 6 months.

2 How is it calculated?

Interest is always quoted at a Per Annum rate (or in simple English: Per Year). Therefore, in this example above, the interest on your loan was 10% per year. If you repay the loan in a time shorter than a year, the interest is divided by the number of months of your repayment i.e. 6/12 instead of the full 12 months.

You take your calculator, and take R17.50 x 6 and see that you actually paid them R105 over the 6 months instead of just the R100 that you 3 How does it work? borrowed!

It is a simple calculation with an easy amount to work with like R100.

Why is this?

This is because of something called “interest” Let’s take 2 examples, the one stated above Lets consider what interest is, how it is (R100 at 10% interest), and another more calculated and how interest works. extreme example if you borrowed R100 at a 60% per annum interest rate, both with a 1 What is interest? repayment period of 6 month.

Quite simply, Interest is the cost of borrowing money, or the price you pay for borrowing money from someone else.

10%

EXAMPLE 1 Borrowed funds: R100 Interest rate: 10% per annum.

Repayment terms: 6 months.

Therefore Interest calculation: R100 x 10% x 6/12 = R105 So you will pay pack R105 in total.

Repayment term = 6 months: Therefore R105 / 6 = R17.50 per month for 6 months.

60%

In both cases the amount borrowed was R100 but one consumer had to pay back R105 while the other had to pay back R130 which is much, much more. Remember, the monthly repayment figure the creditor tells you might be manageable, but you should also consider the total you will be repaying over time. These examples are for borrowing only R100. When you borrow more you will also end up paying back more.

The long and short of it is that you will never pay back only the amount borrowed. There will always be an interest amount to consider when borrowing funds. This is after all how credit providers make their money. Always make sure you understand how interest works, and how much you will actually be repaying when you borrow money. Creditors should give you documents telling you exactly how much you will end up paying back in total. If you don’t like the total cost they say you will have to pay then go to another credit provider and ask them for a better deal.

EXAMPLE 2 Wayne Coetzee Borrowed funds: R100 Email: wayne@wcca.co.za Interest rate: 60% per annum.

Repayment terms: 6 months.

Therefore Interest calculation: R100 x 60% x 6/12 = R130 Wow, so suddenly you will be paying back R130. That’s a lot more, compared to the R105 when paying at 10%.

Repayment term = 6 months: Therefore R130 / 6 = R21.67 per month for 6 months.

theDCI launches First group Life Cover For Over Indebted Consumers

This insurance policy for those in debt is the first and only scheme of its kind in South Africa. It is ONLY available to individuals under debt review. The group life structure ensures affordable rates.

The product was developed by The Debt Counselling Industry in consultation with Tennant Life Benefits and is underwritten by Channel Life brought to you by the Sanlam Group.

Those under debt review need cover like this for three reasons: 1.

In the event of death, it guards against the risk that loved ones will be left in financial distress should the debt be settled from the deceased’s estate. This cover clears debts that might otherwise be ‘inherited’ by the deceased’s loved ones. (This is a huge risk that faces any spouse married in community of property, and also for those married out of community of property but with an ante-nuptial contract with accrual).

2. It is the first insurance cover designed to cater for your needs – because we in The Debt Counselling Industry understand the risks you face. Many other plans do not pay out when a claim is lodged simply because you are in debt review. In contrast, this plan is specifically for individuals in debt review.

We care and we acknowledge your unique circumstances.

3.

This cover addresses the issue of multiple credit risk provision. Many debtors are unaware of the added costs created by insurance charges across multiple agreements and how expensive these credit life plans can be.

Costs increase as interest is added monthly on top of the principal debt amount.

Once you join The Debt Counselling Industry group life scheme, you can make sure these insurance charges are stripped out of the repayments by sending a simple notification to all your credit providers telling them of your new cover. This scheme

provides substantial credit life cover paid for by one premium at a highly competitive rate. Replacing multiple credit life provisions with The Debt Counselling Industry scheme can save you thousands of rands over the duration of these loans.

You and your debt counsellor must ensure your mutually agreed monthly budget includes the group life premium.

In the event of death, the scheme ensures debts with credit providers are cleared. Any money left over goes into your estate.

It is easy for anyone under debt review to join the scheme as cover can be arranged by your debt counsellor, who can help you fill in the form. Your debt counsellor will be aware of your total indebtedness and can help you determine the extent of cover. This is fixed when cover is taken out.

Minimum cover is R50 000 and maximum cover is the amount you owe creditors or R1 million. The proof-free limit (cover without

having to prove you are healthy) is R500 000.

You cannot be refused the first R500 000 of cover irrespective of your health.

Cover costs R1.62 per R1000 insured. Cover for total debts of R500 000 would therefore cost R845 a month.

Cover runs for as long as you are under debt review. Premiums are paid by monthly debit.

Repayments stop once you are debt-free.

You may join from age 18 to 64. Cover terminates at age 65. The product does not include disability or retrenchment cover.

Note, exclusions apply; for example, no benefit is payable should death occur due to: • • • •

Suicide or intentional self-inflicted injuries; War or riot; Substance abuse; Participation in hazardous activities or dangerous work (ask your debt counsellor to go through the full list of exclusions)

Contact life@thedci.co.za for further information or application

debtstar

CONSUMER

Debt Vader

Succumbing to the addiction Have you ever just sat back in your office chair (aboard the Death Star or wherever) and wondered what goes through the mind of a debtor who defaults on his Debt Rearrangement Court Order! This was his last chance, and he just threw it away. You wonder if perhaps you missed something in the initial interview, some hidden expense, like a maintenance payment he hasn’t shared with his present partner?

the Sith are not typically known for sympathy

My friend is a psychologist and after my continuous moaning, he finally just asked me: “Have you ever considered that it’s just

his nature to be a defaulter, which is why he applied for Debt Review in the first place?”

(Honestly, it had never crossed my mind until then!). So I did some digging, and what do you know, there is a legitimate addiction called Spending Addiction - SHOPAHOLISM (I’ve always just thought of it as “Retail Therapy”.

You know, maybe pick up a nice new shiny Light Sabre when I’m feeling down.

What’s this got to do with Debt Counselling?

Seriously, what were the DTI thinking when they called us “Counsellors”? I don’t do traditional counselling in my consultations and generally breakout into hives when someone cries or spills their guts (the Sith are not typically known for sympathy). Debt Counsellors establish a plan for debt relief, typically confirmed by a Court Order (because you can’t trust Credit Providers). I got to thinking that maybe we where missing something, don’t get me wrong here, I’m not talking about psychobabble, I always say: creating debt is similar to “accidental pregnancy”, you don’t fall over get up and voila you’re pregnant! Creating debt took both parties, and both need to take responsibility and accountability for the mess they created.

However, I do believe that people who default under Debt-Re-arrangement Court Orders require something more than what we as Debt Counsellors are trained to offer them.

They require insight into their own spending habits and need to realize that their behavior is similar to other addictive behaviors such as problem drinking (alcoholism), gambling and over eating addictions, except their “fix” comes in the mail from the Credit Providers, directly to their door, in the form of a credit card. These consumers spend because spending offers immediate gratification, a sense of power, control, self-worth and being problem free. For these individuals it truly Isn’t about the price tag but each “cha-ching” of the cash register puts them on an exhilarating high! Throw In an instant-access culture – in which we can get answers on the internet in seconds, have a massage chair delivered to your starship overnight (Guilty!!) and watch movies on demand – and we’re not exactly training the next generation to delay gratification.

you’re anxious, nervous, or feeling worried, you get a flood of panic-inducing epinephrine that can feel like pure jet fuel. When something happens that makes you feel especially good (like when you buy something!), you get a rush of incredibly satisfying neurotransmitters called serotonins that feels GREAT. Spending addicts crave the high they get and thus will spend money regardless of the consequences (does this ring a bell for you?). These behaviors amongst other traits, stem from fear that the façade you have built will crack and everyone will see the “real you”: a fraud, a pretender or a failure. Debt Review can be another way for these consumers to delay any such revelation.

It also explains why when a consumer is retrenched, he will default almost immediately and will just not inform his Debt Counsellor of his changed circumstances, because this addiction can also be exacerbated by depression, anger and stress. These feelings become more prevalent, with a good dose of guilt thrown in, once he realizes the repercussions of all the overspending, which in some instances comes too late and results in legal, social and relationship problems.

What these consumer’s need is rehabilitation not the punitive effects created by the greedy attorneys employed by the Credit Providers.

These consumers have been with their banks for years and that loyalty is not rewarded at all. Again, it comes down to, in my opinion, 2 factors:

Maybe pick up a nice new shiny Light Sabre when I’m feeling down

• Person’s under Debt Review are held to a more stringent standard for debt enforcement procedures; and

Scientifically it works like this: There • Call Centres are chemical messengers known as neurotransmitters that carry communication It seems like the banks employ the most from your brain throughout your body. When incompetent persons they can find and then

purposefully offer them no training of real value, so whether you are a Debt Counsellor or a consumer you are left frustrated just trying to get through to them only for the consultant to treat you like you are merely a number.

When the voice on the machine says: Press 3 for self-help??? SERIOUSLY!! (Okay, so this is my private gripe, but seriously, self-help?). I’m not going there because the editor won’t let me.

So, what to do? It is recommended that spending addicts seek professional behavioral counselling or a self-help group to deal with this problem. Addictive behaviors tend to come in clusters, so if you have an eating disorder, a problem with drugs or alcohol, or gambling, you may be a candidate for shopping addiction.

The industry needs to start looking past the numbers and realize that we are dealing with human lives. There are objective tests accredited by the Human Sciences Research Council which can be used to determine if a consumer fits this profile. Observations about personality are a very important component of any credit decision. Even in highly systematized and automated businesses, Credit Providers need to ascertain how in the future they are going to incorporate personality characteristics into their credit granting and decision making formula. Without taking these softer issues into account poor credit decisions will continue to be made resulting in reckless credit granting.

Mail your comments to Debt Vader on debtvader@debtfreedigi.co.za

Are You:  a debt counsellor?  passionate about helping consumers avoid the debt-trap?  interested in becoming an associate Bond Break Money & Debt Management Course facilitator?

Life is a ‘do it yourself’ project Bond Break’s Back to Basics Money & Debt Management programme is focused on helping consumers:  understand the debt-spiral;  change their approach to debt, credit and money management;  set and achieve goals in pursuit of their own dreams; If you have a passion for helping consumers turn the tide of debt and despair, restore their dignity, and achieve their dreams, then you can consider becoming involved as a Bond Break Course Facilitator.

Enquiries: e-mail:

admin@bondbreak.co.za; or

website:

http://www.bondbreak.co.za

bond break (pty) ltd Registration No 2008/012359/07 Accredited with the Services Seta as a Provider of Education and Training No. 4002

Why You Need to Know if Your Bond is

Securitised It is very possible that your home loan has been settled in full by a third party, called a Special Purpose Vehicle (SPV).

Because your loan has been settled in full (ie. the bank has been paid out for your loan), the bank cannot bring your case to court. Under these circumstances, the collections process undertaken by banks, and any judgments taken by the bank as a result, would be unlawful.

Once a loan has been securitised (this is the technical term for this process), the bank loses the legal right to the asset. Confirmation of this was given to the New Economic Rights Alliance in documentation from the South African Reserve Bank.

Unfortunately the banks “neglect� to tell the customer that their loan has been settled thanks to securitisation. This is why The New Economic Rights Alliance, a non-profit organisation, was formed. We are here to educate the South African people, and take legal action if required.

Legal action is happening right now in support of this action and it is saving houses. Take for instance the case of Mr Plumstead. The day before Mr Michael Plumstead was about to watch his family home being auctioned, an urgent application was brought before the Port Elizabeth High Court. Among other things, Mr Plumstead (the Applicant) stated the following:

“15. It is the Applicant’s intention to settle the arrears with the lawful holder of this debt.”

The auction was temporarily suspended by the Court... but then suddenly the bank backed down. The entire case was removed and the bank agreed to pay all legal costs.

Now... why would a bank abandon all their hard work and withdraw a case when the debtor agreed to pay the arrears? Well, look at the words carefully: Mr Plumstead agreed to settle with the “lawful holder of this debt.”

If you read the supporting affidavit of the Plumstead Case on page 19, you will see the securitisation argument. You can view the full document here: http://downloads.newera.org.za/NewERA/PlumsteadCase.pdf Once again NewERA maintains the following: If your loan has been securitised, not only has your legal status with the bank changed, but your debt with the bank no longer exists.

Visit http://news.newera.org.za/bf.php?fid=1233 for the Debt Counsellors survey

CONSUMER Achievements

Thousands of consumers have visited www.thedci.co.za to educate themselves about debt, debt counselling and debt relief.

First in SA足 the only long and short term insurance products underwritten specifically for consumers in debt review. theDCI was pivotal in protecting consumer's rights from abuse by the voluntary debt mediation system which credit providers wanted to create.

The largest base of verified, practising Debt Counsellors in SA. Financially Free IQ 足The only wellness programme of its kind to offer specific benefits to all consumers in financial stress.

Exclusive Partnership and pricing with Credit Dot Cozaa for consumers to know and understand their credit status.

DEBT COUNSELLOR Achievements

theDCI has referred hundreds consumers to DCs for assistance. theDCI has hosted a specialised debt counsellors only online forum where Debt Counsellors discuss industry issues daily.

Debt Counsellors can download debt review judgments at www.thedci.co.za to enhance their learning and see recent legal precedents. theDCI was instrumental in ensuring that debt review was left to Debt Counsellors rather than creditors, in opposing the planned VDMS project.

DCs can now do credit reports, traces and deed searches within theDCI. Pricing is exclusive to theDCI members Secure online support for DCs from the industry and legal experts

1Year of achievements

SERVICE DIRE DEBT COUNSELLING AA Debt Counselling Centre Anthea Johannes NCRDC531 Tel: +27 (0) 21 982 0522 Cell: +27 (0) 84 402 7032 Alan Watts NCRDC 962 NCR registered Debt Counsellor Tel: 084 4448439 Fax: 086 6501954 alan@active-debt-counselling.co.za www.active-debt-counselling.co.za Central SA Debt Counsellors 082 950 7806 Fax: 086 563 1621 Consumer Assist Johann Vermeulen Tel: 0861 628 628 Credit Matters 021 431 9100 info@creditmatters.co.za CS Debt Counselling Bernidene Smith NCRDC 764 057 352 4115/352 5000 Welkom - Free state Darran Manikam NCRDC704 debt@mailbox.co.za Debtbusters 0861 663 328 (NO DEBT) Debt Budget Tel: 021 824 8885 Debt Solve Debt Counsellors Office: 033 397 0945

DEBTINC NCRDC’s 1071, 1188, 1189.

Tel: (022) 713-2021 Fax: (022) 713-2028 Share Call: 0861 20 21 20 E-mail: Info@debtinclusive.co.za Website: www.debtinclusive.co.za SMS: HELP to 35075

Debt Rescue Neil Roets NCR DC 474 Cell: 083 644 7406 Tel: 0861 800 009 Fax: 086 523 0617 E-mail: admin@debtrescue.co.za www.debtrescue.co.za

DebtSafe 0861 100 999 Debt Serious We are serious about debt Vida Scheepers NCRDC1792 Po box 394, Garsfontein, Pretoria 0042 Fax no: 086 553 9403 vscheepers@mweb.co.za Debt Rehab Colleen Van Wyk(BCom, LLB) Debt Counsellor NCRDC2619 Tel: 083 290 0848 Tel: 011 740 7374 Fax: 086 716 9694 Website: http://debtrehab.co.za Debt eezy Your Debt Solution made Easy Ashley Carstens NCRDC858 Tel: 021 839 2809 Fax: 083 512 4160 / 086 665 9125 Email: debt.eezy@gmail.com Website: www.thedci.co.za

Debt Management & Counseling Services “The greatest glory in living lies not in never falling, but in rising every time we fall.”

- Nelson Mandela Derry Burge NCRDC108 140 Irene Avenue, La Concorde, Somerset West, 7130 Tel: 021 855 5997 Cell: 074 177 5375 Fax: 021 855 1195 or 0865413200 E-mail: dburge@telkomsa.net Durban Debt Counselling Services Suite 112, 1st floor Union Club Building 353 Sm ith Street Durban, 4001 Tel: 031 301-7893 Fax: 031 301-5809 phumla.ngema@telkomsa.net

ECTORY Debt Counselling South Africa Cape Town Branch Tel: 021 919 66 94 Rod De Witt NCRDC831 Visit: www.debtcounsellingsa.co.za Fincorp debt Counsellors cc Cecilia Zwarts fincorpdc@yahoo.com Holistic Debt Counsellors info@holisticdc.co.za Helpdesk Debt Counsellors Allan Hoffman Tel: 0861 000 754 Help-U-Debt (Vaal Triangle) Wanine Tel: 082 445 3967 Help-U-Debt (Potchefstroom) Madra 083 390 3275 Help-U-Debt (Parys) Marilouise 082 920 6249 Help-U-Debt (Vanderbijlpark) Herma 083 320 8303 Incentive Debt Counselling “Paving the way to a Debt Free Tommorrow” Darran Manikam NCRDC704 Tel: (031) 409 9379 Fax: (031) 409 1327 Cell: 0845898286 Branches: Phoenix and Shallcross Indigo debt counsellors CC

Tel: 087 808 9734 Fax: 086 580 8675 indigodc@iburst.co.za MG Consulting Strand - Helderberg Area Telkom : 021 853 4537 Mobile Phone: 082 450 7459 Fax Number: 0866 220 690 E-Mail: info@mgconsulting www.mgconsulting.co.za NDA Debt Counsellors Your Trusted Debt Counsellors Gary Williams (NCRDC 143) Tel: 034 315 3880 Fax: 086 612 4112 gary@ndad.co.za www.ndad.co.za Rihanyo Debt Counselling (012) 804 50 57 Think Green Debt Counselling Sandi Pauw sandipauw@mweb.co.za Tel : 012 991 6638 Cell : 082 460 7800 Fax : 086 219 2615 U-Win Debt Counsellors Coreli Roos - NCR DC 509 Aliwal North, Burgersdorp, Bethulie, GariepDam, Smithfield, Springfontein Cell:079 626 66241 croos@global.co.za Zuné Coetzer Debt Counsellors NCRDC 1599 24 van der Stel Street, Dan Pienaar Bloemfontein Tel: 051-4364515 Fax: 086 5870 845 Email: zunecoetzer1@gmail.com

The best angle to approach debt is the Triangle Caledon - Western Cape Contact Person: Yolande 8 Hoop Street, 7230 Caledon caledon@triangletrust.co.za Tel: 028 212 2537 Ceres - Western Cape Leyll str 61, 683 Ceres andre@triangletrust.co.za Tel: 023 312 1292 Fax: 023 312 2119 Worcester - Western Cape 71 Porter Street 6850 Longitude: 19.44305 Latitude: -33.64942 worcester@triangletrust.co.za Tel: 0233420576 Fax: 086656801 Bloemfontein - Free State 94 Zastron, 9301 Bloemfontein Contact Person: Yolande bloemfontein@triangletrust.co.za Tel: +27 51 448 2828 Fax: +27 51 447 9481 Viljoenskroon - Free State 35 Denyssen Street, 7230 Contact Person: Johann Olivier viljoenskroon@triangletrust.co.za Phone: +27 56 343 0352 Fax: +27 56 343 035 Welkom – Free State 329 Stateway, 9460 Welkom Contact Person: Susan Roux Email: welkom@triangletrust.co.za Tel: +27 57 352 6117 Fax: +27 57-352 2355

SERVICE DIRE DEBT RESTRUCTURING SERVICES BORDER REGION: DRS BEACON BAY Johan Pretorius Cell: 082 324 4038 Office: 043 748 1139 DRS BUFFALO CITY Herman Marias Cell: 082 378 3743 Office: 043 7210652 DRS KING WILLIAMS TOWN Herman Marais Cell: 082 378 3743 Email: herman@drssa.co.za DRS CRADOCK Office: 043 721 0652 DRS QUEENSTOWN Herman Marais Cell: 082 378 3743 Email: herman@drssa.co.za

DRS BOND CHOICE Andrea Atkinson Office: 041 393 7000 Email: andrea.atkinson@drssa.co.za DRS CENTRAL EXPRESS Derryn Fish Office: 041 373 9693586 2020 Email: derrynfish@drssa.co.za DRS DESPATCH Isabe Landman Cell: 072 337 3328 Office: 041 933 1189 Email: isabe@drssa.co.za DRS HUMANSDORP Morne Steyn Cell: 083 298 8182 Office: 042 291 0135 Email: Morne@drssa.co.za DRS NKONKOBE (Fort Beaufort) Bernadine von der Decken Cell: 083 2859289 Office: 046 645 1898 Email: bernadine@drssa.co.za

DRS MTHATHA Herman Marais Cell: 082 378 3743 Email: herman@drssa.co.za

DRS KIRKWOOD Keith Le Roux Cell: 073 207 1675 Office: 041 451 0474 Email: keith@drssa.co.za

EASTERN CAPE:

DRS PORT ELIZABETH Derryn Fish Cell: 084 515 6135 Office: 041 453 8961 Email: derryn@drssa.co.za

DRS ALBANY Office: 041 373 9693 Email: dcfull@drssa.co.za DRS ALGOA Marius Weyers Cell: 083 497 3219 Email: marius@drssa.co.za

DRS SIDWELL EXPRESS Keith Le Roux Cell: 073 207 1675 Office: 041 451 0474 Email: Keith@drssa.co.za

DRS SOMMERSET EAST Luther De Bruyn Cell: 082 568 2970 Office: 042 243 1107 Email: luther@drssa.co.za DRS UTENHAGE Lynn Lindoor Cell: 083 7174 183 Email: Lynnl@drssa.co.za FREESTATE: DRS GOLDFIELDS (Welkom) Irvin Billy (Derryn Fish) Cell: 072 114 4427 Office: 081 319 0083 Email: Billy@drssa.co.za DRS MANGAUNG Amanda Johnson Office: 041 373 9693 Email: dcfull@drssa.co.za DRS FOREISTATA EXPRESS (Bloemfontein) Derryn Fish Office: 041 373 9693 Email: dcexpress@drssa.co.za DRS SOUTH FREESTATE Nelmarie De lange Cell: 079 236 3615 Office: 053 591 0734 Email: nelmarie@drssa.co.za GARDEN ROUTE: DRS DE AAR Veronique Louw (Derryn Fish) Cell: 076 382 2020 Office: 053 631 1189

ECTORY Email: deaar1@drssa.co.za DRS GEORGE Francois Van Zyl Cell: 079 522 1930 Office: 044 874 2820 Email: francoisv@drssa.co.za DRS EDEN (Hartenbos) Bruno Mertsch Tel: 042 291 1083/4 Email: brunom@drssa.co.za GAUTENG: DRS CENTURION EXPRESS Amanda Johnon Office: 041 373 9693 Email: dcfull@drssa.co.za DRS LYNNWOOD Junique Julius Office: 012 807 4339 Email: lynnwood1@drssa.co.za DRS PRETORIA EXPRESS Ben Vermeulen Cell: 082 442 8654 Office: 012 331 2145 Email: bverm@lantic.net DRS PRETORIA NOORD Office: 041 373 9693 Email: dcfull@drssa.co.za DRS ROODEPOORT EXPRESS Derryn Fish Office: 041 373 9693 Email: dcexpress@drssa.co.za DRS RUSTENBURG Amanda Johnson Office: 041 373 9693 Email: dcfull@drssa.co.za

KWA ZULU NATAL:

WESTERN CAPE:

DRS GREYVILLE Vyas Juggernath Cell: 083 206 0300 Office: 031 309 8716 Email: vyas@drssa.co.za

DRS BELLVILLE Patricia Bekker Office: 021 948 8523 / 4 Email: patricia@drssa.co.za

DRS KOKSTAD Melanie Louwrens Cell: 083 269 0424 Office: 039 727 1430 Email: melanie@drssa.co.za DRS MORNINGSIDE DURBAN Erica Mtshali (Amanda Johnson) Cell: 076 578 8660 Office: 031 301 5990 email ericah@drssa.co.za DRS PHOENIX Vyas Juggernath Cell: 083 206 0300 Office: 031 309 8716 Email: vyas@drssa.co.za DRS PIETERMARITZBURG Sanele Zulu Cell: 083 543 3487 Office: 033 394 8319 Email: sanele@drssa.co.za

DRS DIAMOND Clive Palmer Office: 021 421 8563 Email: clive@drssa.co.za DRS TYGERBERG Craig Lakey Cell: 082 627 0957 Office: 021 945 4062 Email: craiglakey@drssa.co.za DRS WEST COAST Marius Coetzee Cell: 082 978 4407 Office: 022 713 3766 Email mariusc@drssa.co.za DRS SALDANHA Marius Coetzee Office: 022 713 3766 Email: mariusc@drssa.co.za DRS SOLUTIONS Christelle de Villiers Cell: 084 586 5600 Email: cdv@vodamail.co.za

SERVICE DIRE SUPPORT SERVICES Staff Line Ndizani Executive Recruitment Cell no: 083 3028163 Direct Line: (011) 468 - 2150 E- Mail: saki@staffline.co.za

Information resources & services www.thedci.co.za Designtimes South Africa’s creative resource www.designtimes.co.za TRAINING Compuscan Academy 0861 51 41 31 www.compuscanacademy.co.za You & Your Money Western Cape: NCR Debt Counsellor Training: For a Cutting Edge Course with practical input contact: You & Your Money Dawn Jackson Dawnjackson.training@telkomsa. net Cell: 072 1769789 (021) 761 3287 FINANCIAL ABSA Customer Debt Repair Line 0861 005 901

Credit Ombudsman 0861 662837 Experian 011 799-3400 debtcounsel@experian.co.za Eric Streso Financial Planner B Juris LL B CFP MBA Tel: 0833273358 Fax: 086 612 7912 Fair Debt 0829019788 or 012-3772558 ray@fairdebt.co.za PACFIN Financial Solutions Head Office Tel: +27 11 9757445 Fax: 0865368783 36 Van Riebeeck road Kempton Park 1619 pieter@pacfin.co.za Monte Carlo Building No 8 Voortrekkerstreet Kempton Park 1619 Kempton Park Contact: Reyno Coetzee Tel: +27 11 3945363 Fax: 0866048002 Cell: +27 73 3690884 kemptonpark@pacfin.co.za Boksburg / Germiston Contact: Armand Posthumus Tel: +27 11 8921911 Fax: 0865620378 Nelspruit Contact: Ann Baker Tel: +27 13 7415559 Fax: 0880 1374 15559 Cell: +27 82 9024236 jeleroux@telkomsa.net

Springs Contact: Wynand Mclachlan Tel: +27 11 8113728 Fax: +27 11 8113728 Cell: +27 83 2754014/5 wynmc@telkomsa.net Gooseberry Business Advisory Tel: 012 644 0589 Nedbank Debt Rehabilitation & Recoveries Services 0860 109 279 STD Bank Debt review Helpline Telephone: 0861 111 402 TransUnion 0861 482 482 Thinkmoney Financial comparison website Contact: Gareth Mountain Tel: 079 0996 798 www.thinkmoney.co.za WIZARD Vereeniging Making Mortgage Magic Wanine Smit Tel:+27 16 454 1132 Fax:+27 86 686 3678 Cell:+27 82 445 3967 www.wizard.za.com FINANCIAL PLANNING Eric Streso Financial Planner B Juris LL B CFP MBA Tel: 0833273358 Fax: 086 612 7912

ECTORY LEGAL

RM Brown and Associates 601 Pier House, 13 -17 Heerengracht, Cape Town Tel: 021 431 9127, f: 021 425 0875 Email: oliver@rmbrown.co.za

Karen van Staden Scheepers Attorneys Tel: 012 998 9117 / 012 993 2132 Gerhard Scheepers Fax: 086 721 6467 / 086 662 1153 schlaw@iburst.co.za IsEmail: it timekaren@hauptearle.co.za to expand your Debt Counselling practice? office@hauptearle.co.za Agiliti CC www.hauptearle.co.za Colleen Van Wyk(BCom, LLB) Do you need specialist Attorneys with a national Tel: 083 290 0848 footprint?

LUCID Attorneys Tel: 011 740 7374 Do you need expert advice on how to protect Tel: 011 880 1100 Fax: 086 716 9694 your practice and your clients?

Fax: 011 880 1101 Website: http://agiliti.co.za Are you informed about recent statutory and Email: info@lucidsa.com legal developments within the industry? www.lucidliving.co.za/attorney CREDIT BUREAUS

Dont miss out on a single issue!

Attorneys servicing individual needsCompuscan

Pretoria: +27(0)12 998 9117

www.hauptearle.co.za

0861 514 131 www.compuscan.co.za

Nelspruit: +27 (0)13 752 7084

O’Connell & Associates Attorneys at Law Keegan O’Connell k.oconnell@oalaw.co.za Tel 021 462 1663 Fax 0866 504 550 303 Millborough, 70A Upper Mill Street, Vreedehoek, Cape Town, 8000 Prinsloo & Associates Attorneys and conveyancers Nanika Prinsloo Farm Bergamot, Paarl 7620 P O Box 6199, Paarl 7620 14 Laing Street, Barrydale 6750 Cell: 072-8558-106 Fax: 086-623-5986 nanika@vodamail.co.za www.empowerlaw.co.za

Computer Profile Bureau 0861 28 7328 www.c-p-b.co.za Experian www.experian.co.za Business- 0861 63 60 70 Consumer- 0861 10 5665 Micro Lenders Credit Bureau 0861 28 7328 www.mlcb.co.za TransUnion 0861 886 466 www.transunion.co.za XDS 0860 937 000 www.xds.co.za

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