Debtfree Magazine - August 2018

SOUTH AFRICA’S DEBT COUNSELLING MAGAZINE

RECKLESS LENDING

ARE YOU A VICTIM? August 2018 www.debtfreedigi.co.za

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Why won’t this winter ever end? It’s almost spring already.

Seriously! It just feels like things are dragging their heels. At the same time, the year is almost ¾ done. Can you believe that? Time sure flies when you are busy and cold. If the Debt Review Awards signal the middle of the year to the industry, then the DCASA Conference, which was held in August, signals that we have very little year left. Before we realize it December will be upon us and then the dreaded January cash crunch. So, watch out!

This month we are looking at the topic of reckless lending. No, not ‘reckless borrowing’ - where consumers go and try get a loan they know they can’t really afford. That’s a whole different ball game and a topic for another day. Rather, we are looking at things from a mainly credit provider perspective. We explain what reckless credit is and why some consumers actually have their debts written off. Could you be one

of those people? Now getting debt written off may sound fantastic but it is not easy to establish if something is or isn’t actually reckless. These matters are so sensitive they actually have to be decided by a Judge or Magistrate. We discuss why that is the case and also why consumers need to rely heavily on their Debt Counsellors when this topic comes up.

We also have a bunch of recent industry and economy news, articles with consumer advice, interviews with some new role players within the industry and some very interesting court cases which could directly impact on your debt.

For those who did not get to attend the recent Debt Counsellors of South Africa annual conference we get a quick round up of the day and what was said and who was there (or not there). The event is one of the largest meetings of Debt Counsellors each year and was once again well attended this year. The rather hot topic of Debt Intervention came up and you probably want to check out what was said about that (hint: it wasn’t too optimistic).

The debt review process, much like the year, starts off like a rocket, with lots of changes and excitement. Over time, however, things seem to slow down and start dragging on and on without any end in sight. Don’t be fooled though.

Each month is taking you closer and closer to the end of the process. You might not be too aware of it but the end of the process can roll up on you suddenly and much like spring might be here before you realize it.

So, keep on ‘keeping on’. Make those debt review payments. Learn more about the process and how to manage your finances and before you know it you will be basking in the warmth of finally being totally debt free.

FROM THE

E D I T O R

RECKLESS CREDIT

JOB HUNTING

PDA PROFILE

NEWS

SERVICE DIRECTORY

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However, reporting inaccuracies can occur, consequently readers using this information do so at their own risk. Debtfree Magazine makes content available with the understanding that the publisher is not rendering legal services or financial advice. Although persons and companies mentioned herein are believed to be reputable, neither Debtfree Magazine nor any of its employees, sales executives or contributors accept

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C O N T E N T S

JOB SEARCH ADVICE One of the reasons why many families have to enter debt review is because of one member of the family losing employment. When your income takes a serious knock it is hard to make ends meet, never mind pay all your creditors. Fortunately debt review can help during your hunt for new employment.

But in an environment where 1 out of 4 are unemployed countrywide, competition for jobs can be tough. Here is some advice from job searching Guru Gerard Le Roux about looking for work and your daily routine while doing so: Job Hunting: Do you find it...

Gutwrenching? Stressful? Panic inducing?

Whether you are younger and still live at home or you’re an exec, with no current job, in your 50s, wondering if ‘this is it’ (but you’re not ready for that… not mentally and definitely not financially!), the question is:

What can you do?

How can you cope?

Whoever you are you can benefit by having a good routine.

A good active routine is key to success. Not only in life in general but in having the right mindset for searching for new employment.

Wake up early. Read something positive. Get some exercise. Eat healthy.

Work on yourself. Remember the good you’ve done in the past. Create a very clear vision of what you want your future to be. Picture yourself making a difference. Embrace the feeling of being successful in achieving something meaningful. Feel it! Plan some home improvement or get going on a home organisation project. Help a charity on a Saturday morning. Tutor some kids in Maths.

It’s hard. But you have to put one foot in front of the other. Do good stuff for you and do good stuff for others.

The WORST thing you can possibly do is sit around the house in your pajamas and wait for the phone to ring, while surfing for jobs online.

Check out Gerard’s Facebook page with lots of free stuff to help in your job search here: https://www.facebook.com/kickassjobsearch

RECKLESS LENDING

ARE YOU A VICTIM?

RECKLESS LENDING When the National Credit Act was being drafted, credit providers panicked at a new provision in the act which addressed the practice of giving credit to consumers who could not realistically afford to repay it.

New provisions were made to postpone or even write off the debt. Credit Providers were very concerned since, from the beginning of time, consumers have come to credit providers when they do not have enough money, not when they have nearly enough, and definitely can repay it over time. Most of the collections industry was dependant on consumers being given loans they would default on, and then making a huge profit off the collections process. Consumers who defaulted were liable for, not only legal and collections costs but, also extra fees and interest. This new provision was a game changer.

The end of 2006 and early 2007 saw a huge drive by credit providers to offer credit and credit limit increases to everyone they could get their hands on. To this day we have more credit users in South Africa than employed people. This is somewhat a testament to these last minute efforts.

When the Act (NCA) came into effect, so did this provision. Thus credit granted before 2007 is not subject to this provision but all credit granted since is. Over a decade has passed and surprisingly not many high profile reckless lending cases have been heard. In fact, you may know a little about the topic but not be entirely sure what it is and how it works.

Have you been a victim of reckless credit granting? What does this mean?

Could you have your debts written off?

DID YOU KNOW?

If you were granted credit recklessly, it can be postponed or totally written off by a court. You would then not have to repay a cent more toward that debt. The court can also order that all the payments you already made be refunded to you. The National Consumer Tribunal can fine Credit Providers for granting credit recklessly.

NOTE: It is important to acknowledge that credit providers have made big changes to try to avoid reckless credit since the NCA came into effect.

In addition to this, the National Credit Regulator (and DTI) have pushed for stricter lending criteria and assessment requirements. Not all credit you cannot afford is “reckless�, and just because people become over indebted does not mean they were when they first gained access to credit.

Things change, the unexpected happens and this is a common cause for consumers ending up in need of help or debt counselling.

RECKLESS CREDIT

WHAT IS RECKLESS CREDIT? Credit is defined as “reckless� for a variety of reasons, not just if you can afford it or not. This is something many people forget. Here are some of the reasons as set out in the National Credit Act (& regulations): The consumer was given credit which the credit provider knew they could not realistically afford to repay.

This is the big one. This is what most people think of when discussing this topic. A greedy or foolish sales agent at the credit provider gets all the consumers information and works out that the consumer is probably going to fail to make the required payments each month. Regardless, knowing the consumer will eventually default, the agent grants the credit.

Credit Providers have adjusted their computer systems to try to avoid this, but most times, these are open to some human manipulation to ‘get it to work’ regardless. A classic example was a credit provider whose staff, many times, captured customers monthly household running costs as R850/ month regardless of the size of the family. This figure pleased the software and allowed the staff to grant credit, meet targets and earn commission (even though the consumers would later default).

The consumer was given credit which the credit provider should have known they could not realistically afford to repay.

When you apply for credit, the credit provider will ask you to share your monthly running costs with them. They will also draw a credit report and see who else you are paying each month. They will ask for proof (of some sort) of your income.

Math’s then allows them to take your income (which they can see on your bank statements and payslip) and subtract your other debt repayments (which they can see on your credit report) as well as your monthly household running costs (which they can see from your bank statement and your application form).

Even if you ‘fudge’ your figures a little on the form (hey, mistakes happen) the information they have access to, will show them whether you can afford the credit or not. If you can’t, and they grant the credit anyway, perhaps due to laziness in not checking the figures properly, then the credit is reckless.

RECKLESS CREDIT

MYTH BUSTED: ‘TOTAL DEFENSE’ Many credit providers think that if you are not 100% honest or accurate in the form you fill in with them, that they have a ‘complete defense’ against reckless credit. This is simply not true.

If they had enough info to check what you told them (even if slightly inaccurate) and grant you credit that you cannot afford then they made a mistake and breached the requirements of the NCA. Eg. A wife applies for new credit, not realizing her husband has run up secret debt due to his gambling habit. She hands in the requested documentation and completes the credit application form which asks about their other debts, but does not include the secret debt. She also forgets about their monthly insurance debit order which comes off her husband’s account.

The credit provider draws a credit report on them and sees the extra hidden debt noticing it is not included in the list of debts she has mentioned.

They also see the monthly insurance deduction on the husband’s bank statements.

If the calculations show that the couple cannot actually repay the new credit she is applying for, the credit provider should not grant the credit. If they do, based only on the incomplete figures which she gave them and not all the information they have, then the credit is reckless.

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RECKLESS CREDIT

UNDERSTANDING YOUR OBLIGATIONS Many consumers who default on bond or vehicle repayments are horrified that the creditor has the legal right to go to court and get a judgment, which ultimately allows them to not only to sell the asset but also collect on the left over debt for up to 30 years. This is because they never understood the agreement they were signing.

A frequently overlooked reason why credit may be reckless is when the consumer did not fully understand the obligation they were taking on. This can happen for a variety of reasons.

The Pre Agreement (quote) and Credit Agreement (contract) may have been in a language that the consumer is not able to read well. Many times consumers are just too happy, and too desperate, to even read the contract. Some will sign the agreement even if it is in a language they cannot read. Others cannot read at all and yet will still sign, simply trusting that the credit provider knows best.

Can you clearly define difficult terms like:

Default; Litigation; Interest; Residential; Notification If not, then how could you fully understand and agree to a contract which uses these terms? The NCA (and other laws) requires that consumers actually understand what they are agreeing to if not, the account may be reckless.

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RECKLESS CREDIT

MISSING INFO OR SIGNATURES There are a number of other reasons which may make credit reckless such as: did the consumer actually get the legally required pre-agreement quote or not? Did the pre-agreement have all the information about all the costs included in it? Did they initial or sign the pre-agreement and/or the contract document. Were only some pages initialed and not others?

These small but significant things also determine if credit was granted recklessly or not. It is not just about whether the consumer could afford the debt at the time or not. That is too simplistic and narrow a view of the requirements of the NCA.

RECKLESS CREDIT

WILL YOUR DEBT BE WRITTEN OFF? When consumers apply for Debt Review then they can ask their Debt Counsellor to look for reckless credit.

At present, the onus in the NCA is on the consumer to ask. If a Debt Counsellor investigates and finds something that looks suspicious they can approach the court with the information they have been able to gather, and ask the court what they think.

NOTE: a Debt Counsellor does not find the matter to be reckless but rather can aver or suggest to the court that it may be reckless. The court is then empowered under the Act to find the credit reckless or not.

Whenever any court in SA considers a matter about any credit agreement, they can have it investigated to see if it may be reckless.

If a court finds the debt to be reckless, they have a few choices. Most consumers hope that the court will say that the debt no longer has to be

repaid, and perhaps even that the credit provider has to give back all the payments which have already been made. This can and has happened in the past. It is seen as a way that Credit Providers can be punished and taught not to grant credit recklessly again in the future.

More frequently, however, many courts are now simply delaying repayment on these particular debts until the consumer’s other debts are repaid through debt review. Then payments on this reckless debt would start up again.

RECKLESS CREDIT

WHY SO FEW RECKLESS CREDIT CASES? There have been one or two high profile cases where a pensioner ended up not having to pay off a bond, or where the National Credit Regulator severely punished a major bank but these cases are few and far between. Why?

Cost & Credit Provider Push Back Debt Counsellors find that as soon as they mention that an account could possibly be “reckless� then the credit provider sends a huge legal team and really delays and fights the debt review application in an effort to bury the matter. This means the consumer is unable to benefit fully from debt review and often prevents them from getting a court order to protect their other assets. It also means very big legal costs for the case. Debt Review consumers cannot readily afford these, especially if it is a small debt.

Settling Out of Court Rather than extensive legal battles, many times a Credit Provider will make a brilliant offer on the possibly reckless account, or may even offer to write off the debt themselves rather than let the court rule on the matter (court cases are never cut and dry and things can always go either way). This is something Debt Counsellors also need to keep in mind. They do so because they do not want to face possible fines of a Million Rand at the NCT over a small credit amount.

Credit Providers May Not have the Original Documents

Delayed Payments Remove the Incentive Some courts now delay payments on these reckless accounts. It may cost many thousands of rand to prove that a small debt is reckless and then the court simply delays payment. This means that the consumer ends up worse off than if they had simply paid the account normally through debt review (with the relevant discounts and benefits).

Debt Counsellors and their clients are forced to analyze the cost to benefit ratio and make a choice.

When Debt Counsellors ask for the original documents to see what the consumer did or didn’t sign, they are often met with silence or non cooperation. This could simply be because the credit providers cannot find or do not actually no longer have the original documents. Some have tried to pass off similar documents signed by other people at the time.

Not too long ago, a huge bank in the USA got into huge trouble for providing fake contract documents, which a company in Mexico had made up for them. They simply no longer had the original documents.

No documents equals no actual contract, this is scary for Credit Providers. When credit providers do not cooperate and provide these documents, it may be a sign that the agreement is reckless.

RECKLESS CREDIT

INCENTIVIZING RECKLESS CREDIT INVESTIGATIONS One of the highest profile cases involved the NCR asking the NCT to fine African Bank, who had revealed what was happening at their Dundee branch where credit had been recklessly granted. The banks shares nose dived, the CEO quit and the bank folded within a short time.

Then the whole issue of consumers losing their life savings came up, and the bank had to be shut down, split up and eventually relaunched as a new credit provider with the same name (and same staff and same branding).

Other cases have not been as successful.

Overall, Government has been disappointed that there have been so few reckless credit matters. They would like to see more.

The NCR recently made a bold move to try to get Debt Counsellors motivated to investigate reckless credit. Debt Counsellors reported to the NCR that a reckless credit application doubles the amount of time and resources required to do a debt review application. The NCR updated their suggestion on Debt Counselling Fees and included an amount of R1500 to be paid to the Debt Counsellor if they investigate reckless credit.

It is no surprise then that Debt Counsellors followed this cue from the Regulator, and began to do so even though this fee is small. There has since been a lot of complaints from credit providers over this, as some have received hundreds of requests for additional account information as a result. The big banks have tried to get the NCR to get Debt Counsellors not to ask them for information on accounts, as this is expensive for them to find and difficult for them to get. They have made several proposals at the Credit Industry Forum to try reduce these requests.

DebtSafe, a debt counselling firm, reports in their quarterly Reckless Lending Indicator that they investigated 5591 cases between 1 April 2018 and July 2018. Their findings in those cases showed that as many as 40% may indeed be reckless. They report that they have really struggled to obtain many of the needed documents to fully clarify if this is the case or not.

Note: The NCR has released a non binding opinion (or guideline) on their 2009 NCR Task Team Report which requires that every account in debt review be investigated for reckless regardless of whether the consumer asks for it or it appears to be dodgy. The NCR say each account must be investigated. Thus Debt Counsellors who decide to follow the NCR opinion will all be charging this fee on every matter.

RECKLESS CREDIT

POTENTIAL AMENDMENTS TO THE NCA – RECKLESS LENDING Many consumers are as excited about the prospect of ‘Debt intervention’ which may be included in the National Credit Act as they were many years ago about reckless credit. There is a wild hope that all their debts will be written off as was speculated about reckless lending.

One of the more worrisome parts of the new bill which has Debt Counsellors concerned, is that it may become a punishable offence (meaning fines or prison time) if they do not report any matter which may be reckless. As we have seen an account may be reckless for many reasons and not just if a consumer could not afford to repay the debt at the time.

Did the consumer sign every page of the agreement? Did the Credit Provider actually draw a credit bureau report? Did the consumer understand every phrase in the agreement or not? If in doubt, Debt Counsellors may have to take the safe route and report that every account they see may in some way be reckless, but they were unable to make a full determination and recommendation with the info they had at the time.

They would then have to report this to the NCR who would be swamped by thousands of such reports each month (anywhere from 70000 to 140 000 reports each month). This would then bury the NCR in paper and pretty much defeat the actual intent of the bill. However, when faced with the choice between being reasonable or being 100% sure of not going to jail or being fined Debt Counsellors will make the obvious choice.

Some experts say that if the draft bill becomes law, even more Debt Counsellors will leave the shrinking industry (over the last 2 years the NCR has reduced the amount of Debt Counsellors by 50%) as a result.

RECKLESS CREDIT

HAVE YOU BEEN A VICTIM OF RECKLESS LENDING? It is entirely possible that some of your credit accounts may have been granted recklessly. This means that a court could order that this account be written off or the payments postponed.

Though it seems that it is best to have each account investigated (and this could become the norm in the future) it could also result in legal fees which are much higher than you are able to financially cope with (in some cases as much as R25 000). In addition, the benefits could end up being minimal compared to the risks it brings to your overall debt review application. You could spend all that money, and run additional risks, just

to have payments postponed for a while or you could lose the case and end up having to pay the credit providers fancy lawyer’s bills. A balanced and practical approach to this topic is typically best.

Your Debt Counsellor will know more about the particular credit providers involved, the court the matter will go to, and the likelihood of any benefit in investigating the account. If you ask for an investigation, it will of course happen, but it is good to rely on their experience and expertise in these matters and not to get your hopes up of an easy debt write off.

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These firms are registered and checked on by the NCR (National Credit Regulator) and are part of the National Credit Act.

NEWS DEBT REVIEW AWARDS OPEN REGISTR ATIONS & SUGGESTIONS The annual Debt Review Awards process for 2019 is now set to begin and as usual, NCR registered parties will all be considered. To be eligible to win however participants need to register. The annual Debt Review Awards peer review process allows those within the industry to weigh in on the performance of their counterparts on the opposite side of the industry on a number of occasions. These evaluations or Peer Reviews are then compiled (by an online system) into a composite overall result.

If you have suggestions on ways that the Debt Review Awards process can be improved you can register and capture your suggestion at the end of the form. Over the years dozens of suggestions from the industry have been incorporated into the process and Awards event.

Suggestions have seen the process transform from an industry panel of experts to an online peer review process, seen additional categories and Awards been added and even helped shape the criteria that are used to evaluate each NCR Registrant.

The 2019 registration sign up can be found here: https://tinyurl.com/y8jjq8bg

DEBTSAFE REPORT 40% OF ACCOUNTS RECKLESS DebtSafe is a nationally operating debt counselling firm with thousands of debt review clients. They have just released an interesting report on the state of reckless lending which shows that as much as 40% of all the credit accounts they have looked at recently may be reckless.

Reckless credit is credit granted illegally to consumers who do not understand their obligations, do not receive all the information about their obligations or cannot afford to realistically repay the credit.

Credit Providers can be heavily fined for granting credit recklessly and consumers can in some cases have their recklessly granted debt written off.

DebtSafe reviewed thousands

of client’s cases over the last 3 months and of the over 5000 accounts they looked into, over 2000 appear to be reckless in one way or another.

You can download the Report here: https://tinyurl.com/ybbuwl8q

DC PARTNER INTRODUCE NEW SUPPORT DESK Payment Distribution Agencies or PDAs are part of the National Credit Act and often help Debt Counsellors with software to manage their businesses and clients, as well as, calculate the best way to repay debts. One of the four NCR registered PDAs, DC Partner have now introduced additional support and training to Debt Counsellors and their staff who work on their system.

DC Partner has set up a support desk specifically for Debt Counsellors (or their staff) to provide web based training via Skype. This allows the PDA to reach their many clients online swiftly and provide country wide training on an ongoing basis.

NCA AMENDMENTS TAKE THE NEXT STEP The Portfolio Committee on Trade & Industry has been working on a way to deal with the growing need among millions of low income South Africans who are accessing credit and getting deeper and deeper into debt. They recently delivered a finalized amendment bill to the NCA which they feel will address this by creating something called Debt Intervention. The process is basically debt review done, for free, by the NCR for consumers who earn less than R7500 and have debt smaller than R50,000. The process also caters for those who are unemployed. The adopted bill now goes to the council of provinces and potentially on to the President.

KIM ARMFIELD

AND ASSOCIATES

DEBT REVIEW | CREDIT LAW | LITIGATION CONTRACTS | FAMILY LAW | WILLS & ESTATES Tel: 021 949 1758 | 084 702 3760 info@legalwc.co.za | w w w.capeat torney.co.za

NCR ISSUE NEW DC CERTIFICATES

BANKS IN TROUBLE AT COMPETITION TRIBUNAL

The NCR recently began issuing Debt Counsellors with annual renewal certificates when they pay their annual fees. In the past there were some concerns and some mix ups in getting these certificates to everyone in time for their next court appearances.

This year, the NCR has reportedly done a great job in emailing a digital version of the Debt Counsellors annual certificate on time and also mailing hard copies to all registrants promptly.

When visiting a company offering debt restructuring assistance or dealing with one online ask to see their certificate of registration with the NCR to ensure you are dealing with a legal, NCR registered individual.

30 different individuals working at 23 different banks have been accused of colluding to manipulate foreign exchange rates. These banks are now defending themselves before the Competition Tribunal against the Competition Commission who are looking to have these banks fined up to 10% of their annual turnover.

It has been said that the various banks made secret agreements on when to trade and when not to trade and buy currency from international currency trading platforms. They allegedly took turns to trade so that they could get the right price and it is alleged even created fake bids to manipulate the price of the Rand V Dollar. The case is set to begin at the end of August and run into September 2018.

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Die Republiek van

SKYT AFRICA Hi Almal, Daar is al baie dinge in die verlede gesĂŞ oor hoe om geld te bespaar maar teen die tempo wat ons verarm deur die styging in lewenskoste soos elektrisiteit, water, brandstof en voedsel, dinge buite ons beheer, dink ek tog dit is n onderwerp wat weer bespreek kan word.

Ek het op n facebook blad die vraag aan mense gestel, hoe bespaar julle?

Is julle in die proses van besparing bereid om kwaliteit in te boet? Alhoewel hierdie groep in Pretoria is met die naam van EK IS VAN DIE OOSTE, is daar honderde sulke groepe in julle onderskeie omgewings waar julle inligting en idees kan uitruil. Opvallend was dat niemand mekaar gekritiseer het nie of opinie gehad het die ander persoon is n armgat nie. Die inligting en raad wat uitgeruil was, was opreg. En ja, kwaliteit was en is belangrik.

Hier is van die insette: Riatha: Ek koop my skoonmaakmiddels by Westpack. Dis R40 vir 5L en doen presies dieselfde as die brand name. Katkos daar is R200 vir 10kg.

Eiers, room, kaas en mushrooms word by die boeremark gekoop. Die naby geleë Escort fabriek vir bacon en viennas. Koop koffie voor die 25st van die maand in die supermarkte want dit is dan op n special. Die maand was Nescafe R75 ipv R120. n Maandpak hamper vleis by die slaghuis is goedkoper.

Ria: Soms is dit goedkoper om uit te eet as om vleis en groente te koop en elektrisiteit te gebruik om gaar te maak. O’Gallito’s se spesiale middagetes wissel van R80 – R110 per bord. Maak ook die kinders groot om nie soos die res oor “brands” bekommerd te wees nie.

Bernice: Kan nie kruideniers koop nie. Koop genoeg paste en a paar blikkies tamatie en uie souse, brood en so nou en dan eiers. Gevriesde groente is die kleinste pakkies R11 wat ons in twee deel. Af en toe hoender borsies vir minder as R50.

Ria se raad aan Bernice: Gaan kyk by FoodLovers daar is gereeld sakke gemengde groente vir goedkoop. Jy kan dit opsny en vries. Aartappels, rys en soppoeier rek enige gereg, die soppoeier is vullend en smaaklik.

Pieter: Met GD10 Multipurpose Cleaner bespaar die gemiddelde huishouding R4800 per jaar op skoonmaakmiddels en kwaliteit word nie ingeboet nie.

Jennifer: Ek koop Ackermanns, Truworths, Edgars of Woolworths se 50% uitverkoping op kinderklere vir volgende jaar se winter/somer want hulle groei so vinnig.

Cathleen: Nog iets waarop ek bespaar waar die pryse gebiedsgebonde is, is n haarsny. In Villeria betaal ek vir n sny, kleur, strepies en blow wave R350. In die Ooste is die pryse belaglik. Jy kry nie noodwendig swakker diens omdat jy nie jou hare in n salon sny waar die huur R25 000 is nie.

Da-Ina: Ek sny gereeld vleis uit. Groente hetsy gekook, gebak of gebraai is heerlik saam met kruie of kerrie.

Marinda: Ek het so n jaar terug vanaf die Ooste na Middelburg verhuis.

MInce is R137kg hier en in Pretoria R85kg. Koop maar genoeg vleis wanneer ons Pretoria/Ooste toe gaan.

Cathleen: Ek het vir die afgelope 8 jaar nie n bediende of tuinman nie.

Gebruik tuindienste vir R650 per maand, tuinman sou R250 per dag kos uitgesluit taxi fooi en voedsel. Die take van n bediende tussen my kinders verdeel wat geroteer word. Dit wat ek aan n bediende sou betaal word aan die kinders betaal, nie eintlik n besparing nie maar dit leer my kinders hoe om te werk vir dit wat jy in die lewe wil hĂŞ. Nadat ek gehoor het pryse is gebiedsgebonde het ek meer uitgevind. My kruideniers vir 5 mense is tussen R4 500 en R5 000. By Shoprite in die Bougainville sentrum het dieselfde kruideniers my R3 000 gekos. R2 000 besparing vir 35 minute se ry. Groente vanaf Fruit Stop in Gesina en vleis direk van n boer, 21kg vir R1 400 verpak en afgelewer.

Charles: Dstv afgesit en Netflix met uncapped internet gekry, n mens kan dus n kleiner bundle op jou foon vat. Skoonmaker kom elke 2de week ipv weekliks, dit is darem nie n hele dag se werk om self gou te vee of te stofsuig. Brandstof - gebruik Shell me Clicks clubcard en kry so n paar sent terug op n liter. Maak genoeg kos om die volgende dag werk toe te vat.

Om op te som, praat met die mense in jou omgewing, sit n post op facebook en hoor waar en hoekom hulle koop. Vergelyk pryse en ry miskien n kilometer of twee verder, dit kan jou miskien duisende spaar.

Dankie aan almal wat waardevolle raad gedeel het.

Groete.

Christo Hattingh Kyk gerus my LinkedIn profile: https://www.linkedin.com/in/christo-hattingh-351a52130/ * Seriously please do let us know if you found this article to be funny/offensive/amusing/interesting feedback@debtfreedigi.co.za

DEBT REVIEW SCHOOL Establish connections with your Debt Counsellor in various ways (eg: Facebook, phone, website, physical office).

This helps you stay in touch in case you lose their phone number or if they move.

Listen to a great interview with Toby Chance MP, Shadow Minister for Small Business Development in SA. Toby is introducing new legislation that creates an Ombudsman for small businesses

Debt Counsellors Collective iDCC is waiting to hear back from the NCR in regard to our official request to join CIF. We encourage non-affiliated DCs to join.

https://soundcloud.com/scottcundill/toby-chance-mp-and-the-neweconomic-rights-alliance

A representative will be attending the meeting at parliament on Tues 31 July 2018 where proposed amendments to the NCA will be discussed. www.allprodc.org

Visit our facebook page for more info.

www.bdcf.co.za

Free State Branch Meetings Kopano Nokeng Country Lodge, Date: 19th October 2018 Gauteng Branch Meetings Kempton Park Golf Club Dates: 23rd October 2018 KZN Branch Meetings Westville Country Club Dates: 26th October 2018 Western Cape Branch Meetings Parow Golf Club Dates: 23rd October 2018

www.dcasa.co.za

NDCA continues to actively participate in industry forums, including the CIF, and looks forward to the implementation of proposed DCRS rule changes

We appear in the following courts and act as a correspondent for Dc’s and their attorneys.

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COURT MATTERS A number of important court cases are underway or have recently been held. We take a brief look at some of them and how they impact on the industry and debt review. Also be sure to download the latest version of the Magistrates Court Act at the end of this article.

University of Stellenbosch’s Law Clinic & Summit Take On Section 103(5) Back in 2016, Stellenbosch University’s Law Clinic and Summit Financial Partners helped a group of poor farm workers to get relief from their crushing EAOs (commonly called Garnishee orders). It was a landmark case that finally sparked change in how garnishee orders are handled. Subsequently, the Magistrates Court Act has actually been amended to make allowance for the refined processes suggested in that case.

The basic idea of Section 103(5) Induplum is that when you owe someone money and default on payment, then this draws a line on how much they can recover from you in the future. The law says you only ever then have to pay double the defaulted amount. In the past, lawyers and credit providers really abused the old common law Induplum rule and people ended up paying many, many times more than double what they originally owed due to the wording of the law.

Even now since the inception of the NCA some credit providers (and even courts) say that if you make a new arrangement to pay off a debt (like debt review) this ‘cures’ the default (even if you are paying a lot less than what you should). That then means they can carry on milking you for more and more payments and fees and interest as long as you pay something and don’t let the debt prescribe. This seems to defeat the fundamental purpose of the law.

Over the years, consumers who have had “garnishee orders” (EAOs) have often ended up paying ridiculous amounts toward this debt and

later find out after many years that they still owe more according to their creditors and greedy lawyers. This is because the lawyers try to say that the collections costs are not part of the Induplum amount or they simply ignore the law on Induplum.

In an example put forward by Summit and USLC, they shared how one Bayport client who borrowed R12 000 in 2011 (who planned to pay off the debt in 3 years) defaulted on payments. He then received a EAO against his salary of R732/month towards the remaining debt of R11 685.00.

After 6 years of payments (+-R52 704.00) Bayport said that he still owned R7400. Why? Because they had added interest charges of R21 019 and countless other legal and collection charges of around R6500 onto his debt).

They cite another case where a consumer with a EAO ended up paying over R5000 for a R600 debt.

While it may seem that these things are obviously immoral and illegal based on the law, many credit providers and their collections agents say that they are operating according to the limits of the law.

Credit provider’s collections & accounting units hate this law because it limits how much they can collect from debtors and thus their profit margins. If they ignore it or work around it they can make a lot more money than if they automatically institute it on their systems (as some good credit providers already have). Over the last 10 years, the NCRs and Debt Counsellors have been valiantly trying to get credit

providers to abide by the requirements of NCA Section 103(5) to the benefit of consumers but many credit providers have successfully ducked and dived for over a decade.

This case should now force the issue into the public eye and help set absolute clarity on the involved consumer’s matters. This, in turn, should help when the matter arises in other courts across the country.

SBSA & ABSA At Court Over Setting Reserve Prices For Auction Sales If you take a bond on a property you are committing to making payments over several decades. Also part of that agreement is that if you default at any point (and leave the account in default) then the bank has the right to summons you and get a judgment. After getting a judgment the credit provider can then move to sell the property on auction to recover some of their funds. Normally, this takes about 30 months from the time of first default but can be much faster if the bank is aggressive and uncompromising.

Often though, properties sold on auction this way have been sold for very little (as little as R10 in one case), leaving the consumer in deep debt with the balance of the bond to pay even though the property is sold. This can leave consumers with many years of debt repayments on an asset they no longer own.

The real goal of the collections process is to get in the missing funds and so in many cases the consumers catch up payments before the property is actually auctioned.

In that case, the consumer can carry on with the original agreement (after paying for some extra fees). It is said nearly 66% of such matters are sorted out before the auction. This, however, means that a third of these matters end up with the property being sold.

Recently, the law changed so that a reserve price (minimum amount for which the property can be sold for) can be set by the court before the auction. Some courts have been quick to implement this while others have simply ignored it as the law is not clear on under what circumstances such a reserve price must be set.

Now ABSA and Standard Bank will be heading to the South Gauteng High Court, following a directive from Gauteng judge president Dunstan Mlambo, in an effort to gain clarity on when this must happen. The banks all say that when there are reserve prices set it can reduce the amount of interest from potential buyers.

These two banks would like to see a very particular set of circumstances under which this would happen while others in the court case argue that it should always be done.

KIM ARMFIELD

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The Minister of Trade and Industry & the National Credit Regulator vs Micro Finance South Africa case no A172/17 Recently, MFSA took the DTI & NCR to court over changes that they claimed were made to the National Credit Act regulations without proper industry consultation and consideration of how the changes would affect industry parties. Many smaller credit providers often give consumers repeated loans such as small pay day advances etc and this case dealt with the rate that could be charged. The court originally ruled in favour of the MFSA. The DTI then asked that the matter, as previously ruled on by Justice Louw in the North Gauteng High Court, be reviewed as they were not happy with the outcome and how the case was handled.

The recent changes to the NCA regulations which were published, meant that if a credit provider gave another loan to a consumer, within a calendar year (which is very common with small lenders and low-income consumers) that the rate cap for that loan then dropped from 5% per month (original loan cap) down to 3% per month (subsequent loans).

A full bench of several Judges carries more weight than a ruling by a lone Judge and in this case, when the matter was reviewed, the ruling swung in the opposite direction (now in favour of the DTI).

The ruling in the case of The Minister of Trade and Industry & the

National Credit Regulator vs Micro Finance South Africa case no A172/1 makes a number of points and says that the previous ruling was incorrect because (1) the Judge didn’t consider all the evidence, the changes to the regulations help combat heavy debt, credit providers (like the big banks) have already adjusted to the new regulations and MFSA members (small lenders) are relatively unimportant in terms of the overall credit industry. It also says that the Minister of Trade & Industry did actually consider the effect and do enough research.

Therefore due to this new ruling, the regulation changes about subsequent short term loans is still in effect and consumers will pay 5% interest on the first short-term loan and then a reduced 3% interest on any other short term loans from that credit provider within a calendar year.

SA Class Action Law Suit Vs Steinhoff Retail giant Steinhoff was revealed to be an unstable house of cards when shocking accounting fraud was finally revealed late last year.

Once the first irregularities were revealed the situation snowballed with Directors quitting, the sudden sale of assets to try to stay afloat and the slow unveiling of the true extent of the cunning accounting which had hidden the SA founded company’s rather empty coffers.

Steinhoff was first incorporated in South Africa, then in Netherlands

and was eventually listed both on the Johannesburg Stock Exchange and Frankfurt Stock Exchange.

Now three legal firms have launched a joint class action suit against the firm, former directors (including Mr Jooste) and even several banks such as ABSA, Standard Charted (UK) and Commerzbank (Germany). Other respondents are auditors Deloitte and Rodi & Partner.

Though other shareholders are taking similar action overseas, local SA law in a class action is beneficial in that it automatically includes share holders unless they specifically ‘opt out’ (as opposed to overseas where people have to actively opt in). The class action suit could well end Steinhoff as they are seeking damages for those affected to the tune of R185 Billion.

Download the Amendments to the Magistrates Courts Act The recent changes to the Magistrates Courts Act, as signed off by the President, allow for refinement of procedures surrounding things like consent to jurisdiction (regional or district), recession of judgments where the debt is paid up, clarifies the process of debtors making offers after a judgment has been issued on a debt and adds in fines and penalties relating to emolument attachment orders or EAOs (commonly called “garnishee orders” by most people).

The amendments really attempt to reshape the past EAO (Garnishee) practices and hope to ensure an end to abuses in this regard by adding limits and ensuring proper oversight.

There are also some refinements to the definitions section to add greater clarity. It also adds that orders in terms of section 55 should be just and equitable and allow the consumer enough to cover necessary costs and obligations while taking into account their income. This is something that was often overlooked in the past.

Download the updated Act here: https://tinyurl.com/y9lbeye5

ď•­

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PDA PROFILE Debtfree took some time to speak to Marcelle Williams, Director at CollectNet PDA.

Where are you from (where did you grow up)?

I was born in a Township called Eersterust in Pretoria. I have lived in Pretoria area ever since.

Where have you worked in the past?

Can you tell us a little about your education background?

I matriculated from Eersterust Secondary before doing a Marketing and Business Diploma (Damelin) (1995) and a B.Com (Financial Accounting) at the University of Pretoria. (2000).

I then completed my Hons B.Compt (Accounting Science) /CTA via UNISA in 2005. Because I am a big believer in ongoing education I am currently busy studying M.Phil Management Coaching. You are never too old to learn new skills.

I started working in 1995 at Telkom (Clerical in the finance dept) and spent 5 years at Telkom where I was eventually promoted to be a Debtors & Creditors supervisor. I spent 5 years at TFMC – in various positions from Financial Supervisor to Financial Manager and even acting Finance Exec. This gave me a lot of experience both in management and the corporate environment.

After some time after that at Business Connexion as Financial Manager, I moved into the banking world at FNB in the Property Finance division and then on to Mettle Property Finance.

Starting in 2009, once the National Credit Act was already in force, I started a debt collection business (MIW Risk Solution) and got to really see the needs in the industry. Then, in 2014, I moved to CollectNet as a Director.

How did you become involved with the financial industry and specifically CollectNet? As you can see, I have really been in the financial industry for the past 24 years. I have had numerous financial type roles in different industries from pure accounting and auditing to financial management and financing.

I had previously been involved in a debt collection business for about 5 years. In 2010 I bought a small debt counselling franchise which I quickly found was very labour intensive. I eventually closed the franchise after a year. So, I have been aware of

and exposed to the DC environment since 2009.

I was later introduced to Capital software, in 2013, through my business partner Rene Pillay. Rene, Jacques De Wet (CEO of Capital Software) and I created CollectNet in 2014 to explore different opportunities in the FINTECH space including, eventually the PDA environment. We have since applied and subsequently received approval to become the 4th NCR approved and registered PDA in the country.

So, you are very familiar with what it takes to be a Debt Counsellor?

Yes. I had a DC franchise in 201011. It was a tough time for the industry and being a DC is a lot of very hard and time consuming work.

I learned that a good PDA can make all the difference.

Can you share a little more about your role at CollectNet?

Do you have any hobbies when you are not hard at work?

Yes: Playing Golf and also watching all sorts of sports like soccer, cricket and rugby. I also really enjoy I am one of the 3 owners of travelling.

CollectNet along with Rene Pillay and Jacques De Wet. I perform the function of Operations Director looking after implementation and also now directly heading up the PDA division.

Yes. I have 3 white Swiss Shepherds.

Do you have any pets?

?

Are you excited that the NCR are relooking at the PDA fee structure?

Where do you see CollectNet and the industry going over the nex t few years?

I believe the industry is currently going through some tough times from a perception perspective.

In time, the value we deliver as a industry will be more appreciated.

I don’t see debt counselling as an industry going away anytime soon.

I do believe that, like with any other industry, it will change. We at CollectNet are ready for change and I believe that in the next 5 years we will be a noticeable player not only in the PDA environment, but in the Fintech space as a whole.

Yes, we are but we are not holding our breath. We will just wait and see what transpires. I do however believe that if the PDA fees do not increase somewhat, it will be difficult to sustain a PDA business going forward.

Do you think that PDAs will play a role in Debt Intervention?

If I look at the Bill that was drafted I cannot see how the NCR will deal with Debt intervention without involving the PDA in some way or form. In order to perform an efficient PDA function, you need the systems and expertise to do it properly. This is a function that the existing registered parties can perform.

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HELP NEW MOMS & BABIES Being in Debt Review and Pregnant can be daunting prospect due to the sudden extra unexpected costs. It can even threaten to ruin your debt review. DCCS want to help pregnant Debt Review moms with a special gift hamper to help them deal with the extra costs.

Each Hamper consists of nappies, creams, soaps, wipes, clothing and a receiving blanket. Would you like to donate a pack to help a pregnant debt review mom?

DONATE R180.00

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DEBT COUNSELLING COMMUNITY SUPPORT

DEBT REVIEW SCHOOL Your Debt Counsellor or their staff should never ask you to pay money into their account.

They will probably ask you to make debt repayments via a NCR registered PDA.

DCASA Annual Conference REVIEW

The Debt Counsellors Association of South Africa held their annual conference in Gauteng this month. Debt Counsellors from around the country attended along with credit providers and other support services. You may not have had the opportunity to attend this year and so we have a brief look at some of the highlights from the day.

The day began and ended early with hundreds in attendance. Most of those attending were from the Gauteng area and at least one of the largest Debt Counselling firms in SA had representatives at the event. Most Debt Counsellors in South Africa are split between Gauteng and Cape Town, with the biggest firms being mostly situated in Cape Town. Debt Counsellors are able however to assist consumers countrywide and DCASA have many provincial branches across the country. Representatives from these regional DCASA groups were in attendance.

The event took place in the now familiar venue at Emperor’s Palace (who have a conference centre) and was well attended. Also there on the day were a number of displaying industry role players ranging from industryspecific insurance providers (like ONE|SURE), to PDAs (all except NPDA attended) to ancillary services such as Compuscan (who also offer training to the industry). Some banks such as FNB and ABSA had stands where Debt Counsellors could interact with them face to face.

This was very helpful and allowed Debt Counsellors to breifly exchange contact info and mention matters that require urgent attention.

Special time was set aside during the event for guests to mingle and enjoy some tea and visit the sponsor stands. Though brief, these breaks enabled everyone to stay fresh between all the speeches and presentations.

Attendees were able to grab a bunch of the printed Special Edition of Debtfree Magazine as well. Many of those displaying had nice gifts for the guests ranging from pens and water bottles to lip ice and sweets. At the

end of the day some even gave away prizes such as Hyphen PDA (a Tablet) and CollectNet PDA (an iPad).

The day was a mix of general business information (such as the presentation on PoPI) and association-specific speeches (such as the review of the year by the DCASA President).

• Starting off the day DCASA President Russel Dickerson spoke to the audience and welcomed all.

• Next, was a presentation from previous conference speaker Mr Mike Schussler. Mike is an economist and gave an overview of where the SA economy stands at present and where it is likely to go. All in all, he painted a rather sad picture and warned that tough times are ahead.

He did, however, point out that this means that Debt Counsellors would soon be busier than ever with more consumers needing help.

• Mr Theo Vorster and the folks at Galileo Capital then made a presentation themed: ‘The investment solution and how to build a long-term annuity income for business‘. They showed how investing in property only brings a marginal income slightly higher than inflation over time whereas investing in shares will, over time, bring a higher return. Interestingly, they showed how if you just leave your investments/ shares and don’t trade and mix them up too much you make a high return anyway (though slightly lower than if you are trying to move them around). One of the most interesting slides presented showed what happens when investors run scared during a sudden downturn and what can happen if you miss just 6 days on the market over a period of several years.

• If you are unsure of how the Protection of Personal Information Act is going to impact on your debt counselling practice then you would have benefited from Mr.Juan-Jacques Jordaan’s presentation on the

topic. He pointed out how no one really reads the T&Cs anymore and a lot of consumers data has been illegally shared already. He warned that the fines and punishment for breaches are sever and showed examples of how an innocent thing can get you into a lot of trouble once the Act kicks in 100%.

• The next speaker was Ms Maya Fisher-French, well-known journalist (Maya on Money). She discussed how nearly no one is saving and how fewer people than ever are saving toward retirement. So, while South Africans are in trouble now with over usage of credit they will be even more in trouble in the future when their meagre savings run out or they have to face retirement without any savings at all.

• After Lunch “the prof” Mr Frans Haupt (of the University of Pretoria Law Clinic) gave a walk down memory lane as he reviewed the last few years of debt review. He explained some of the serious hurdles that the industry has had to overcome and in particular the inconsistent legal rulings on the topic which have shaped the current debt review landscape. He also said some very nice things about Debtfree Magazine and how it is a good resource to the industry and consumers alike.

• The two final speeches of the day were from DCASA President Russell Dickerson and former President Mr Paul Slot. Russel gave a presentation on the industry and industry updates which covered all sorts of things such as what is happening or not happening at CIF. • Mr Paul Slot gave a rather gloomy presentation on Debt Intervention.

He pointed out how the Portfolio Committee have decided that Debt Counsellors do not want to help low income consumers and how this is simply not true. DCASA has repeatedly indicated that this is not the case. Regardless, the Draft Bill (which should be passed over to the Council of Provinces in the next few weeks) simply cuts Debt Counsellors out of the process. The general feeling was that the NCR will be

swamped by the work and that everyone knows this. Of particular concern was how many staff it will take to assist just a fraction of the people who should apply. Some estimates are 1.5 million people, others are around 5 million. If the NCR take on just 15 000 new consumers each month then they will need to match the current staff amount of all debt counselling companies countrywide at present (this is roughly how many consumers Debt Counsellors help each month).

DCASA wish the NCR well and hope that things go better than they anticipate.

The day ended a bit earlier due to a decision to forgo the usual question and answer session at the end of the day and guests who wrote down questions were promised an electronic reply. This made it possible for many to leave a bit earlier and beat the traffic. The day ran smoothly and all who attended enjoyed receiving a new helpful guide booklet on PoPI and its impact on debt review, as well as, all the chats, snacks, lunch buffet and speeches.

DON’T WORK WITH AN OUT DATED VERSION OF THE ACT

UPDATED 2017

We are happy to announce that the Amended National Credit Act booklet is now available via our shop.

Get the latest version for only R250.00

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Specialist Debt Management Centre Beverley Ludick, NCRDC948 Pretoria Tel: 012 377-3557 Email: obligco@gmail.com Email: dc@obligco.co.za www.obligco.co.za

NCRDC197 Tel: 011 660 9970 Fax: 086 540 5017 KRUGERSDORP e-mail: nicky@nvdmdc.co.za www.nvdmdc.co.za

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CCDC Consumer Care Is our Priority.

Tel: 018 462 4263 / 073 624 6949 Email: info@ccdc.co.za www.ccdc.co.za

DEBT NO MORE - NCRDC1973 Christelle du Toit Tel: 016 423 6301 Cell: 083 321 6731 FAX: 086 219 3306 Email: debtnomore@jjckruger.co.za

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MV Business Empowerment 9 River Road Morning Hill Bedfordview (next to Eastgate mall) Tel: 083 490 3339 velaphi@infitech.co.za

Suite 7 Gladstone Court 103 Smiso Nkwanyana [Goble] Road Morningside Durban Tel: 031 303 1004 Mobile: 076 835 2810 Email: jbechoo@jb-attorneys.co.za

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LIMPOPO National Debt Advisors Fighting For Consumer Justice Tel: 021 007 1688 www.nationaldebtadvisors.co.za

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South Africa’s largest and most trusted, multi-award winning Debt Counsellor.

SMS Salary Management Services Annerien de Jager Registered Debt Counsellor NCRDC0075 015 307 2772 info@smslimpopo.co.za

086 999 0606 info@debtbusters.co.za www.debtbusters.co.za

www.maaudebts.co.za 2014

2016

2017

Debt Review Awards

Debt Review Awards

Debt Review Awards

WINNER

WINNER

WINNER

MPUMALANGA GMC Debt Solutions 52 Kerk Street Lydenburg Tel: 087 802 7054 Tel: 087 151 1034 www.gmcdebtsolutions.co.za

Romi Oliphant Debt Counselling Service 013 650 0116

rodcs4u@gmail.com http://rodcs4u.webs.com/ WhatsApp 062 502 5987

South Africa’s largest and most trusted, multi-award Credit Matters South Africa’s Leading Debt Counsellor. winning

Debt Counsellors 14th Floor, The Pinnacle Cnr Strand & Burg St 086Cape 999Town 0606 Tel: 086 111 6197 info@debtbusters.co.za Fax: 021 425 6292 info@creditmatters.co.za

www.debtbusters.co.za

2014

2016

2017

Debt Review Awards

Debt Review Awards

Debt Review Awards

WINNER

WINNER

WINNER

National Debt Advisors Fighting For Consumer Justice Tel: 021 007 1688 www.nationaldebtadvisors.co.za

National Debt Advisors Fighting For Consumer Justice Tel: 021 007 1688 www.nationaldebtadvisors.co.za

Credit Matters South Africa’s Leading Debt Counsellors 14th Floor, The Pinnacle Cnr Strand & Burg St Cape Town Tel: 086 111 6197 Fax: 021 425 6292 info@creditmatters.co.za

NORTH WEST

Depopulating a generation of over indebted and populating a debt free generation.

Office No. 6, Prime Pharm Building, 36 Dr Nelson Mandela Drive Tel: 0186320053 Tel: 0877026744 Email: papi@maaudebts.co.za www.maaudebts.co.za

South Africa’s largest and most trusted, multi-award winning Debt Counsellor.

086 999 0606 info@debtbusters.co.za www.debtbusters.co.za

2014

2016

2017

Debt Review Awards

Debt Review Awards

Debt Review Awards

WINNER

WINNER

WINNER

National Debt Advisors Fighting For Consumer Justice Tel: 021 007 1688 www.nationaldebtadvisors.co.za

NORTHERN CAPE

South Africa’s largest and most trusted, multi-award winning Debt Counsellor.

086 999 0606 info@debtbusters.co.za www.debtbusters.co.za

2014

2016

2017

Debt Review Awards

Debt Review Awards

Debt Review Awards

WINNER

WINNER

WINNER

Credit Matters South Africa’s Leading Debt Counsellors 14th Floor, The Pinnacle Cnr Strand & Burg St Cape Town Tel: 086 111 6197 Fax: 021 425 6292 info@creditmatters.co.za

National Debt Advisors Fighting For Consumer Justice Tel: 021 007 1688 www.nationaldebtadvisors.co.za

Credit Matters South Africa’s Leading Debt Counsellors 14th Floor, The Pinnacle Cnr Strand & Burg St Cape Town Tel: 086 111 6197 Fax: 021 425 6292 info@creditmatters.co.za

EASTERN CAPE

South Africa’s largest and most trusted, multi-award winning Debt Counsellor.

086 999 0606 info@debtbusters.co.za www.debtbusters.co.za

2014

2016

2017

Debt Review Awards

Debt Review Awards

Debt Review Awards

WINNER

WINNER

WINNER

WEBSITE | www.debt-therapy.co.za

debt therapy

integrity guaranteed

debt therapy is registered with NCR | NCRDC49

National Debt Advisors Fighting For Consumer Justice Tel: 021 007 1688 www.nationaldebtadvisors.co.za

Drastically reduce your monthly debt repayments Let US help 0861111863 Regain control of your finances www.debt-therapy.co.za

WESTERN CAPE

CONSOLIDEBT Heidie Knorr NCRDC209 Paarl, Worcester, Wellington, Ceres, Piketberg, Clanwilliam, Vredendal Tel: 021 863 2754 / 082 380 4401 consolidebt@vodamail.co.za

CHOOSE YOUR FINANCIAL FREEDOM TODAY Tel: 021 204 8001 • Email: dc@ffsdc.co.za

www.financialfreedomsolutions.co.za dc@ffsdc.co.za www.financialfreedomsolutions.co.za

ISISEKO DEBT HELP Get Your Life back on track TEL: 087 230 0223 FAX: 086 551 1649 EMAIL: makanti@isiseko.co.za WEB: www.isiseko.co.za

Credit Matters South Africa’s Leading Debt Counsellors 14th Floor, The Pinnacle Cnr Strand & Burg St Cape Town Tel: 086 111 6197 Fax: 021 425 6292 info@creditmatters.co.za

NCRDC1142 No 2 Golden Isle Building 281 Durban Road, Oakdale, Bellville, 7535 Tel: 086 111 3749 Email: help@zerodebt.co.za www.zerodebt.co.za

All Debt Solutions Fast tracking your financial freedom Tel: 0861 255 3328 / 021-557 9981 Email: info@allds.co.za www.alldebtsolutions.co.za https://www.facebook.com/ alldebtsolutions

“There is no dignity quite so Impressive and No Independence quite so important as Living within your Means - Calvin Coolidge” For your Convenience Our Range of Services are Availble to you Anywhere in South Africa!

Jackie Coetzee 079 317 8557 022 713 2021 documentswc@fusiondc.co.za

South Africa’s largest and most trusted, multi-award winning Debt Counsellor.

Your Guide to Financial Wellness and Recovery 0861 229 922 info@debthero.co.za www.legalhero.co.za

086 999 0606 info@debtbusters.co.za www.debtbusters.co.za

2014

2016

2017

Debt Review Awards

Debt Review Awards

Debt Review Awards

WINNER

WINNER

WINNER

WESTERN CAPE

CONSUMER DEBT SUPPORT Annienne Nel NCRDC2452 Kairo’s House, 22 Fairfield Southstreet, Parow, 7550 Office: 021 930 5791 Cell: 082 641 2328 Fax: 086 563 3264 e-mail: info@debtcentre.co.za www.debtcentre.co.za

“Helping you the SMART way” 0860 061 008 info@smartdebtadvisors.co.za www.smartdebtadvisors.co.za

RIGHT STEP TO A DEBT FREE LIFE. 086 111 2274 081 785 3724 info@logicaldebtsolutions.co.za www.logicaldebtsolutions.co.za

SUPPORT SERVICES

011 451 0041 0860 072 768 www.dcmax.co.za

DEBT lana Van Herwaarde, DC Operation Centre (PTY) Tel: 0867227405 Email: info@dcoperations.co.za www.dcoperations.co.za

086 126 6562 debt@one.za.com www.one.za.com

COMING SOON

TRAINING

COMING SOON

FINANCIAL PLANNING

LEGAL

Liddles & Associates “It always seems impossible until it is done” N. Mandela (T) 021 930 5790 (F) 0866070940 (E) frontdesk@liddles.co.za www.liddles.co.za

Steyn Coetzee Attorneys / Prokureurs Adri de Bruyn 11 Market Street / Markstraat 11, Paarl, 7646 Tel: 021 872 1968 Fax: 021 872 2678 adri@steyncoetzee.co.za

RM Brown and Associates 16th Floor, The Pinnacle Cnr Strand & Burg St Cape Town Tel: 021 202 1111, f: 021 425 0875 Email: roger@rmbrown.co.za

Your Debt Counselling Attorneys Johannesburg | Cape Town Andre Van Zyl 021 494 4862 Kim Armfield Attorney & Family Law Mediator Address: Unit 1B, FinansHuis, 7 Voortrekker Road, Bellville Tel: 021 949 1758 / 021 945 2526 Office cell: 084 8588 284 kim@legalwc.co.za

info@bassonvanzyl.com

www.bassonvanzyl.com

CREDIT BUREAUS

Xpert Decision Systems (XDS) South African information bureau.

Cape Town | Johannesburg +27 11 645 9100 info@xds.co.za www.xds.co.za

PAYMENT DISTRIBUTION AGENCIES

DC Partner 044 873 4530

COLLECTNET +27 12 140 0602

Hyphen PDA 011 303 0060

NPDA 0861 628 628

SYSTEM PROVIDERS

FINWISE - INNOVATIVE DEBT M

Tel: 011 451 0041 Tel: 0860 072 768 www.maxpayments.co.za

Debt Review Software Tel: 016 004 0031

South Africa’s premier debt management solution www.finwise.biz

•

•

•

•

•

‘’ I was pleasantly surprised by our experien new system is intuitive and e Debt counsellor Eas

CAPITEC CONTACT DETAILS

Form 17’s Proposals Court documents General Queries Refund Requests / Cancellation of Debit Orders Complaints Insurance Certificates Sharecall Contact Number

ccsforms17@capitecbank.co.za ccsproposals@capitecbank.co.za ccsdebtrevieworders@capitecbank.co.za ccsdebtreviewqueries@capitecbank.co.za ccsrefundrequests@capitecbank.co.za ComplaintManagement@capitecbank.co.za coming soon 086 066 7783 - Select Option 2

ESCALATION PROCESS COMING SOON

Turnaround Time

Debt Review DepartmentEmail Address

Contact Details Standard Bank Debt Review Debt Review Call Center:

0861 111 525 or 0861 111 402

Debt Review Documents*:

DRApplications@standardbank.co.za

Debt Review Service requests:

debtreviewservices@standardbank.co.za

5 days

Debt Review payment queries:

DRPayments@standardbank.co.za

7 days

Debt Review administrative requests**:

DebtReviewAdmin@standardbank.co.za

5 days

Debt Review complaints and escalations:

debtreviewcomplaints@standardbank.co.za

5 days

Reckless Lending Allegations

recklesslendingallegations@standardbank.co.za

*Debt Review documents: Form 17.1; Form 17.2; Proposals; Court Applications; Court Orders **Debt Review Admin related requests: debit order cancellations; statement requests ; refunds; paid up letters; account closure instructions; settlement balances; or outstanding balances

Other Standard Bank areas Credit Card

086120 1000

Diners Club

0113588400 / 0860346377

Vehicle Asset Finance Recoveries

0861102347

Vehicle Asset Finance Collections

0861102347

Home Loans Pre Legal

0860102270

Home Loans Customer Service

0860123001

Standard Bank Insurance

0860123911

Deceased Estates

0861001868

Department

Call Centre

Email address / Contact number

0861 005 901

TAT

Absa En

For your convenience we now offe in these departments are subject m could delay the resolution of your q Option 1: Updated balances, s Option 2: Any COB related qu Option 3: Any proposal relate Option 4: Any termination rel 5 Business Days

Pr

5 Business Days

M

DCCOBQueries@absa.co.za

5 Business Days

M

Debitordercancellations@absa.co.za

5 Business Days

M

DCRCAssessment@absa.co.za

10 Business Days

M

DCProposalquery@absa.co.za

10 Business Days

M

DRProposals@absa.co.za

10 Business Days

Pr

Courtapp@absa.co.za

5 Business Days

Al

DRTerminations@absa.co.za

10 Business Days

M

17.4@absa.co.za

10 Business Days

M

Clearance

DCClearanceCertificate@absa.co.za

5 Business Days

M

KYC

DCKYC@absa.co.za

For return of KYC forms.

Debtreviewqueries@absa.co.za

10 Business Days

En

Debtreviewmanager@absa.co.za

5 Business Days

Es

DRCob@absa.co.za DCTransfer@absa.co.za Certificate of balance

Proposal

Legal

Termination

Service 2 |

Presentation title

Function

unity to call our contact centre and be transferred to specific departments. Note that our consultants s and will best be able to assist you for a swift resolution. Please note; choosing the incorrect option

settlements, refunds and general enquiries

Function

a Debt Review ntry Points

er the opportunity to call our contact centre and be transferred to specific departments. Note that our consultants matter experts and will best be able to assist you for a swift resolution. Please note; choosing the incorrect option query. statements, settlements, refunds and general enquiries he 17.1 application. ueries ed queries lated queries

bt counsellor swaps and system changes.

rocessing of the 17.1 application.

B escalated queries and follow-ups.

Manage all debt counsellor swaps and system changes.

bit order cancellation requests.

Manage all COB escalated queries and follow-ups.

ss lending allegations.

Manage all debit order cancellation requests.

oposal escalated queries and follow-ups.

Manage reckless lending allegations.

he following documents: 17.2, proposals, proof of Insurance, 17.3 & supporting documentation.

Manage all proposal escalated queries and follow-ups.

rocessing of the following 17.2, proposals, proof of Insurance, 17.3 & supporting documentation. ments to be provided todocuments: this department for review.

ll legal documents to be provided to this department for review. mination queries, reinstatement requests and follow-ups.

Manage all termination queries, reinstatement requests and follow-ups.

untary termination requests.

Manage all voluntary termination requests.

arance-related queries and requests.

Manage all clearance-related queries and requests.

Types of queries managed by this department: Account closure Types of queries managed by this department: Account closure confirmation/request.

Balance confirmations/query. Account status confirmation/request. Balance confirmations/query. Account status confirmation.

Statement request.

Paid upupletter Refund confirmation.

Statement request.

Paid letterrequest. request. Refund request.

All relevant operational queries totobebereferred to operational operational request.

All relevant operational queries referred to nt for all point query-related matters. matters. scalation for all query-related mentioned above. queuesqueues mentioned above. all query-related matters.

ntry point for all query-related matters.

SECRET CONFIDENTIALINTERNAL INTERNAL ONLY SECRET CONFIDENTIAL ONLY

First National Bank – a division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider (NCRCP20). Reg. No. 1929/001225/06.

DC Query Process DC Query Process

www.nedbank.co.za

17.1, 17.2, Proposals, General correspondence: debtcounselling@africanbank.co.za To register for Legal Web Access: lwac@africanbank.co.za Reckless Lending investigations: RLA@africanbank.co.za

ESCALATION PROCESS DETAILS COMING SOON