www.debtfreedigi.co.za

DebtfreeSouth Africa’s debt counselling magazine

November 2011

NCR accredited payment distribution agency

Can you believe that we are in November? I can’t. This year has really flown by for all of us. Maybe you, like me, were just busy working (or out looking for work) and time somehow just slipped by. That’s life I guess. Well, hopefully another year going by means you are one year closer to accomplishing your goals. Your goal might be that of many South Africans - to get out of debt. Well, we hope you are getting there. Sometimes it can feel like it is a long and arduous road filled with a million things trying to drag you down and derail your best efforts. Well keep at it. All your hard work will pan out in the end. Be sure to read the welcome to the

EDITOR

CONTENTSEditors notes

News

theDCI

The danger zone

Striking a balance

Debtwise tutorial

Case to watch

Service Directory

03

05

10

15

16

20

26

27

danger zone article with some plain talking advice about end of year spending.

We also focus in on the DCI this issue: Who are they and what can they do for you? If you have not heard of them be sure to check them out as they are here to stay and are determined to help you regardless of whether you are a consumer or a DC or CP or PDA (or any other letters like that). We have the usual round up of industry news from the last few days for you as well and some interesting industry stories. Our favorite story is one about www.debtfreedigi.co.za: We are so happy with our new look for our site www.debtfreedigi.co.za that we can’t help but talk about it. We are just glad that you

can visit our permanent home anytime you like. As normal you will still be able to find the magazine online at all the usual spots so if you have been reading it at one of these locations keep doing so but...if you are jonesing for a little bit o’ Debtfree goodness, why not head over to our site and see what’s up? We will try keep the site up to date with fresh content and all the latest news or maybe just some gossip...who knows?

We hope you enjoy this issue.

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REPO RATE UNCHANGED AT 5.5%The Reserve Bank left the repo rate unchanged at 5.5 percent this month as expected. Most economists were expecting the rate to hold steady. Had there been an unlikely 50 basis point cut to 5.0 percent, this would have been a new all-time low. The Bank’s monetary policy committee think that underlying inflation pressures are of a “cost push nature” and that the subdued state of domestic demand and output would contribute to “core inflation remaining contained”, Governor Gill Marcus told a media briefing. “However the Committee is concerned that the change in the profile of the inflation forecasts, and the extended breach of the upper end of the inflation target range, may impact adversely on inflation expectations,” she said. Food prices continued to increase and a further acceleration of food inflation was expected in the near term. There was also mention made of the situation in Europe and how that may negatively effect SA Markets. The Reserve Bank has slashed rates by a cumulative 650 basis points in the two years leading up to Nov 2010, but has kept it steady at all six of it’s last policy meetings this year. Reportedly no one on the seven-member MPC had advocated a cut, though it was extensively discussed. It looks as if rates are to stay at three-decade lows for longer in view of gloomy forecasts of times to come. “The domestic economic recovery remains hesitant. The relatively weak economy has ensured that demand pressures on inflation are restrained at this stage,” Marcus said.

NCR CEO?The latest news on the appointment of a new National Credit Regulator ended when the Parliamentary Committee recently declining the applicant that was presented to them. So now it is back to the drawing board. The candidate is set forward by the NCR board and a “new” Board has been appointed. The Members of the new NCR Board are: Mr Trevor Albert Bailey, Ms Mercy Kenosi Mongalo, Mr JD Pema, Ms Constance Glerah Nxumalo, Mr Mmatli Barnabas Ntlou, McDonald Netshitenzhe (DTI designate) They have been appointed members of the NCR Board for a period of five (5) years. One of their first tasks is to find a new candidate to present to the Parliamentary Committee to consider. Let’s hope this is done soon, as it seems the NCR is in the doldrums waiting for this appointment before many important steps can be made to improve things for the industry.

ALLPRO DC ANNOUNCE NEW BRANCHThe Alliance of Professional Debt Counsellors have announced the formation of a new branch in the Eastern Cape. New members were elected at the meeting held and include Raynard McLaren as the Regional Chairperson. Other appointments were also made, including Judy Fouche as Secretary. ALLPRODC is a new association for Debt Counsellors. Many but not all DC’s currently belong to the long running Debt Counselling Association of South Africa. The New association has been traveling

NEWS FLASHINDUSTRY CONSUMER

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country wide in an effort to get DC’s to work closely together. They have also been trying to get DC’s to contribute to possible changes to the National Credit Act. Many DC’s do not belong to an association even though the NCR encourage this and may even include this as a requirement in a Debt Counsellor’s conditions of registration. AllProDC are hoping to gain support from these unaffiliated DC’s as well as those who are unsatisfied elsewhere. The next hurdle is for them to gain access to the various bodies and committees that influence the industry. These would include bodies like DRAC. Representatives of AllProDC have already met with the NCR and an official letter of introduction handed to the regulatory body.

JOHANNESBURG MEETING OF ALLIANCE OF PROFESSIONAL DEBT COUNSELLORSAllProDC have announced the date of the next meeting in Johannesburg. The meeting will be aimed at introducing Debt Counsellors to a new association for Debt Counsellors.DATE: 17 NOVEMBER 2011 (THURSDAY)TIME: 9H00 – 12H00VENUE: ALBERTON CIVIC CENTRE, ALWYN TALJAARD STREET, ALBERTONCOSTS: ANY CONTRIBUTION TOWARDS TEA AND COFFEEThey have said: “You do not have to become a member to attend the meeting we would however like to encourage you to attend and see what we are about! We look forward to meeting you.”

DCASA FEEDBACK ON COMPLAINTS PROCESSDCASA (a debt counselling association) provide a free service for consumers to lodge complaints against DC’s. DCASA carry the cost of this process. DCASA provides this service to assist Consumers who have applied for Debt Review and to resolve as far as possible all complaints. Where no co-operation is received or where the matter cannot be resolved the matter is referred to the Credit Ombud and/or NCR. The overall benefit of this service is the improvement of the Debt Counselling profession and industry. Generally good cooperation is received from parties involved. At present there are about 50 matters being processed through DCASA each month. Which is not bad considering the number of consumers under debt review. DC conduct can be regulated by their consenting to a code of conduct. To date 690 DC’s have signed a Code of Conduct (although the service is available to clients of all DC’s at present not just those who have signed the code.) Where DC’s do not want to co-operate the matter is referred to the Credit Ombud and/or NCR with details of the DC and case notes for action. These bodies will then investigate. If you would like to register a complaint against a DC through this free service then head over to DCASA’s website for more info: www.dcasa.co.za Please note to lodge a complaint against a Creditor please visit: www.ndma.org.za

NEWS CONTINUED

WWW.DEBTFREEDIGI.CO.ZA Why not visit our website at www.debtfreedigi.co.za. It features all the latest news... go on... click it... you know you want to.

ABSA ANNOUNCE NEW NATIONAL MANAGER FOR DEBT REVIEW ABSA have announced that Grace Nkomo has been appointed to the role of National Manager, Stakeholder Management with effect from the 31 October 2011. Grace will be replacing Pascal Sinclair, who is now “ pursuing opportunities outside of Absa.” Grace has been part of ABSA’s Collections Customer Management team since February 2010 and is described as having a wealth of experience in the banking sector with particular focus on relationship management and customer value management. The difference between collections and debt review are obviously great however Grace is reportedly looking forward to improved relationships and building rapport with various stakeholders especially DC’s and Payment Distribution Agencies. Debtfree DIGI will be interviewing Grace for the next issue. We wish her all the best.

PRESS COUNCIL RULE ON COMPLAINT BY PETER SETOU AGAINST THE SUNDAY INDEPENDENT The Press ombud has ruled against Mr Setou who claims that the story about the alleged corruption and investigation are false and misleading. The report is long so we have only taken excepts therefrom. This ruling is based on the written submissions of attorneys De Swardt Vögel Myambo, for Mr P. Setou, and the Sunday Independent newspaper.

Complaint: Mr Peter Setou complains about a story in the Sunday Independent, published on August 21, 2011 and headlined Hawks investigate complaints – Allegations of a conflict of interest and corruption against Credit Ombudsman. Setou complains that the newspaper: did not contact him for his comment; and used a wrong document that falsely alleges that he had an inappropriate relationship with Rudo Consulting. Analysis: The story, written by Gcwalisile Khanyile, is about complaints by debt counsellor Reginald Nyiko Matjokana against Credit Ombudsman Manie (misspelt in the story – “Mannie”) van Schalkwyk (for conflict of interest), former National Credit Regulator (NCR) CEO Gabriel Davel (for maladministration) and senior manager of education and strategy Peter Setou (for corruption). The story says that Matjokana lodged these complaints with the Public Protector and the Hawks. Khanyile writes that Setou was being investigated by the Hawks. The complaint with the Public Protector is reportedly about Setou’s relationship with Rudo Consulting (RC), an independent consulting firm with expertise in debt counselling (who was to assist the NCR with monitoring and providing support to debt counsellors). We shall now look at the merits of the complaint: Not contacted for comment. The story says that Setou was “unavailable for comment”, implying that it tried to contact him. Setou complains that the Sunday Independent did not ask him for comment prior to publication. He adds that the newspaper nevertheless proceeded to publish the story – resulting in creating the impression that there was some wrongdoing on his part. His lawyer writes: “The irresponsible manner in which this story was researched and published has tarnished

our client’s reputation.” The newspaper denies this, saying that”... our reporter... then sent him sms notices on his cellphone...” in order to elicit a response from him. I asked the newspaper for copies of these sms notices. This is what the newspaper sent me: Dear Mr. Setou, I’ve been trying to get hold of you, but your phone is still on voicemail. We are doing a story about corruption allegations against you relating to Rudo Consulting, DSG (Digital Solutions Group) and Feasibility. The Hawks and the public Protector are already investigating you.1. Why did you record the incorrect figure when you recommended the appointment of Rudo Consulting? 2. Was your intention to deceive other Expo members? 3. You also recorded an incorrect figure on your recommendation for an appointment of DSG, saying the cost was below R100 000 when it was actually more. Why did you do it? 4. Did you have any hidden agenda when you did this? (Please explain). We would appreciate any other comment or additional information related to this matter as we intend to publish the matter we understand to be true. Our deadline is: Saturday, August 20 2011 @ 17:H00. Kind regards, Gcwalisile Khanyile. The report also contains a second sms... ”there are no dates to these messages. However, the journalist sent these to me seconds after we have spoken on the phone – which makes it unlikely if not impossible that she has made them up afterwards. I have checked that the number that the journalist said she used was the right one. It was indeed. Also, there is no apparent reason why the journalist would purposefully send these messages to a wrong number. Therefore, I believe that I have enough evidence to accept that the newspaper tried to contact Setou. Wrong document; False allegation. The sentence in dispute says: “Setou

allegedly manipulated various contracts to favour Rudo Consulting.” The issues at stake are: Did the newspaper use the correct document? If it did not, how reasonable was it for the newspaper to use that document? Was the newspaper’s reportage, based on a right or wrong document, reasonable and fair? Another document that the newspaper provided me with now features – the NCR one, dated 25 August 2011. In this memorandum to Setou, the NCR informs him that he was required to attend a disciplinary enquiry/hearing into several allegations of misconduct against him. These allegations range from preferential treatment of suppliers, fraud and failure to disclose his relationship with a service provider, to breach of the provisions of his special leave. He is also told that, if he was found guilty of any of these charges, he would be dismissed. I note that the story was published on August 21 ...The story says that there was an allegation that Setou manipulated contracts to favour RC – and it is true that there was such an allegation. (This has nothing to do with the question whether Setou was guilty or not.) This means that the newspaper was justified in its reportage on this matter, irrespective of the legitimacy of the document in question. Also, the Sunday Independent did not portray Setou as guilty (regarding his argument of being innocent until found guilty). The story says that he was being “investigated” for “allegedly” manipulating contracts. This is a far cry from being portrayed as guilty. Finding: The complaint is dismissed in its entirety. Johan Retief, Deputy Press Ombudsman

more news at www.debtfreedigi.co.za

In an industry full of acronyms you may wonderif there is space for one more? Aren’t we bogged down by the NCA, NCR, DCASA, PDASA, APDC, DRAC, DCRS and that is just to name a few. You might be wondering who and what theDCI is. DCI stands for the Debt Counselling Industry. The brain child of founder Deborah Solomon theDCI hopes to fill the gap between all parties involved in the debt review process. Debtfree DIGI got to chat to Deborah and see what all the hype is about.

What is theDCI?theDCI is a communication platform that aims to deliver a host of value added services that the industry would benefit from. It has been built specifically, to address the difficulties that debt counsellors face in their daily practice. Whether your practice is big or small, all the services and offerings are designed, negotiated and delivered in a manner that is beneficial to all within the industry.

Are you some sort of association? No.

What can theDCI do for Debt Counsellors?The only secure online forum that is available for the industry, whereby solutions can be found between parties. Open forums are not good

for the industry due to the already negative public perception. This is the only system that can help DC’s make a more informed decision, with regards to assisting consumers that were previously under debt review. For the first phase, DC’s can store terminated consumers, and moving into the next few phases, theDCI will act as a storage facility for DC’s with a data recovery centre in place. Storing the clients data forms part of the regulations of the NCA which to date, no system has been put into place for the industry. DC’s have the ability to collect their debt in 3 different ways, two of which do not cost the DC anything up front. If no money is collected, no fee is charged. The 20% fee that is charged upon collection, includes all legal action at the collection companies discretion. Access to online legal advice and opinions by legal experts specialising in debt review matters both from the DC’s perspective and the credit providers perspective. It also includes a judgment library of all the reported and unreported cases, industry contacts and information pertaining to the NCA and CPA in one central point. The ability to offer your consumers long and short term insurance product that have been specifically developed and designed for the over indebted consumers. theDCI will

INDUSTRY CONSUMER

ensure that the debt counsellor is protected from the FAIS Act issues. theDCI will also appropriately compensate debt counsellors for their involvement in the documentation processes. To gain access to these products, you must belong to theDCI. theDCI gives all leads coming into the site to DC’s who have registered and have sent through the required documentation. Online directory of credit providers view live notifications from credit providers and various other industry players. All DC’s joining, will have 10 free legal letters that they can send off in an attempt to collect money owing from the consumer. theDCI gives DC’s the ability to stand united and have a voice that is heard.

What can theDCI do for Credit Providers?Bridge the communication gap between DC’s and CP’s, change information pertaining to their debt review departments and with the click of a button, help DC’s solve problems in asafe secure environment within the industry. theDCI assist with mediation and resolution rather than court battles that cost the consumer more money and save them huge monthly bills. Share expertise and help evolve the industry by joining forces with DC’s. DC’s that are professional, ethical and honourable looking to find solutions for the industry as a whole will use theDCI. DC’s can now offer the creditors guarantees that there are insurance products in place, as part of the proposals sent out, (if DCI insurance is taken by the consumer), which can and will help to lower their exposure risk. The creditors can be assured that the DC’s will know when debit orders have been returned. They can also be assured that they will be informed by theDCI when a policy lapses, placing their asset at risk.

Transparency of consumers playing the system who do not honour the very people who tried to help them, the DC.

What can theDCI do for Consumers?The consumer section will be launching on 30 November 2011. This will empower the consumer about their rights while under debt review; to make them aware that it is still their debt, and money and they have the right to know and act on certain information. This section will help them make a better informed decision when choosing a DC and the truth of debt review from a DC’s perspective, legal perspective and creditor perspective. It will help the consumer to realise when it is too late for debt review and what other options are available. There is info on how to treat their DC’s and what to expect from their DC’s. There is also a guarantee that the DC’s listed on theDCI are all verified with proof of documentation held by theDCI. By using a DC that will be recommended to them via theDCI, they can have a point of reference back to us if needs be. The DC’s using theDCI are professional and ethical, who have service tools and legal expertise at their service if needs be. We offer Insurance that is specifically designed to cater for their needs while they are under debt review. They can also only obtain these products from a registered DC, who is registered with theDCI. They will have a list of attorneys that are currently on theDCI specialising in debt review matters/their cost and what it entails. They can be guaranteed that these attorneys have their best interest at heart and will help to guide the DC’s in making vital decisions about their future and debt, this includes when the DC’s make unrealistic proposals to their creditors.

What is it going to cost me?Nothing, except if you want to send off legal Letters, which will be R70.00 per letter. If you have information stored on the site about consumers who don’t pay DC’s doesn’t that make you a credit bureau? As theDCI does not receive payment related to the information which it stores from the debt counsellors and the consumers, it is therefore not a credit bureau as defined in terms of Section 43 of the National Credit Act.

If I store documents and info on this site, is it safe and why should I do this?Yes. The system implements several layers/methods of security to protect the site/system, as well as the information and the members. The several layers of security in place are SSL, XSS & SQL Injection, upper level security and backups. Hetzner hosts theDCI and is one of SA’s most trusted web hosting specialists. theDCI servers are located at one of Hetzner’s South African based data centres. Security at Hetzners data centres includes Climate Control, UPS and Generators, Security and Monitoring, Biometric/Magnetic Access Control, 24/7 Monitoring of premises, Fire Protection, Technicians and Support. Go to www.hetzner. co.za for further information on their security centres. DC’s need to understand that in accordance with the Regulations of the NCA, if they do not keep/store all their consumers information, they can get into serious trouble. If their laptops or PC’s are stolen, damaged or data lost, how do they recover it if they do not have some sort of storage facility plan in place? Most storage facilities and debt recovery services cost vast sums of money, theDCI will offer this facility at no charge because it is always the consumer who suffers the most

when things are not done properly. theDCI cares about the industry and especially for the over-indebted consumers.Who is already on theDCI?More than 400 DC’s have sent through their Documentation. Unfortunately, due to on-compliance of required security documentation, more than 500 have registered but do not have access to the site. Major creditors have also given theDCI the thumbs up. Major advertisers will be loaded onto the site by 30 November 2011 as most of them will also be viewed on the consumer section as part of the deal.

How do I sign up?Go to www.thedci.co.za fill in the online registration information and send through the relevant proof of ID, NCR certificate and renewal fees. There is no exception to this rule as I made a guarantee to the consumers and insurance products that an audit trail of documentation is kept.

There are many more exciting aspects to theDCI currently being developed. This is only the first phase of another six still to come. There will be a lunch in CT and JHB in late Jan 2012, a “save the date email” will be sent out within the nextweek. This is the time for all industry players to stand together and truly make a difference in the lives of those South Africans committed to paying their debt, with honour and dignity.

www.thedci.co.za

Just a quick note on court days.

Both the Magistrates and the High Courts work on the basis that a Saturday, Sunday or Public Holiday shall not, unless the contrary

appears, be reckoned as part of any period calculated in terms of the rules. Public Holidays are set out in the First Schedule to the Public

Holidays Act 36 of 1994.

So simply, when you calculate court days you exclude Saturday, Sunday and Public Holidays.

CONSUMER

For many consumers the debt review process takes about 5 years to settle most of their debts. While that may seem long, the good news is that for many about 24 months is all the time they need to change their circumstances enough to be able to leave debt review. Sadly however on the other side of the success coin, 24 months is also about the average time it takes before a consumer defaults on their court order and has to be removed from the process. Normally this is simply because the consumer can’t or won’t pay. The unfortunate part is that this is often simply due to bad planning and a lack of saving by consumers for annual or unplanned expenses. With the end of the year approaching we once again enter the DANGER ZONE- that time when many consumers “bomb out” of debt review due to non payment. This can be for various reasons some legitimate, others frivolous. Some consumers want to spend funds on presents, parties and such rather than face the fact that this year they can’t really afford it.

Others simply find themselves without enough cash set aside in January when it comes time to pay for unusual expenses like school books and clothes for their kids. Let’s be honest your kids need these things and you knew about this expense months ago. However many consumers simply think that it will be ok to default on the new agreement and maybe skip a payment or simply pay less than agreed. Make sure you don’t fall into this trap. No payment = no debt review. One missed month can undo all the effort and changes you have put into place since entering debt review. Not to mention all the costs that have been incurred in paying both debt counsellor, PDA and attorneys for the work they have done. If you default most of your creditors will simply revert back to the contractual amounts owed and remove any concessions they have granted under debt review. They will soon summons you and have judgments granted in an effort to repossess their assets and get at your salary.

WELCOME TO THE DANGER ZONE

With any new industry there are bound to be challenges. In debt counselling, one of the biggest challenges has been trying to strike a balance between consumer rights and those of creditors. Another positive step has been the adoption by all parties of the voluntary processes suggested by the task team on debt review which was set up by the NCR to smooth out hiccups and delays. This has put a heavy administration burden on the debt counselor. What has resulted though, is the need for a lot more work than all parties originally envisaged. Many new Debt Counsellors became involved in the industry to try help consumers and did not imagine the amount of admin work which would accompany that goal. As a result of being bogged down with administration work many smaller Debt Counsellors have failed to spend time marketing their services to their fellow South Africans. At present many consumers still know little about the process and thus these debt counsellors might find , when they lift their heads from behind the piles of paper on their desks, that they have no new clients in their waiting room. This is not a good thing in an industry which is structured to operate on cash injections from new clientele. Many cash strapped Debt Counsellors are now even thinking of leaving the industry for more profitable waters. Before they do so they should ask themselves: is there no way i can strike a balance between the vital administration part of their work and the equally important aspect of finding new work?

For most this has meant the step of employing someone to assist them in their work. For some, this has meant employing several “someone”s. Once again a balance needs to be struck in this area. It is not enough just to hire an extra body to fill a seat at the office. All staff need to be knowledgeable about the process and be kept up to date with new developments in this evolving industry. Here to balance is needed between increased overheads vs income. One way to enable themselves to keep an eye on both sales and admin is by using software systems which are specifically tailored to the needs of the debt counselling industry. After all there is only so far that most of us can make Excel spreadsheets go. These custom designed software packages can help Debt Counsellors track progress along each and every step of the process- from sending out the very first form, to checking up on what is happening with the attorneys who are handling the legal side of the matter in a court on the other side of the country right on through to checking that consumers are making regular payments and seeing if consumers don’t need to be removed from the process for not sticking to their monthly payments. It is amazing how good software can help save time. It also allows Debt Counsellors to focus, not only on doing work, but then suddenly having time to find new work too.

Johann Vermeulen, The DCM Group johann.vermeulen@debtcontrol.co.za

INDUSTRY

THE CHALLENGE OF STRIKING A BALANCE

Debt Counselling

Administration

a nightmare?

Consumer Assist Support Services is a unique service to accredited debt counsellors, which includes:

Legal administration, including attorney payment administration

Automated communication to debt counsellor and client

Full view of client interaction on web-based system

Informative work sessions for debt counsellors

For more information, call us on For more information, call us on 0861 628 628 or visit www.consumersssist.co.za.

We can help

Consumer Assist is a member of the DCM Group

Debtplan is a niche based insurance service provider within the debt review industry. Our aim is not just to add value to consumers during their debt review process, by providing them with debt risk related products that can save them money, but also serving as the conduit between the debt counsellor and their client`s. Should you as a Debt Counsellor or consumer require further information on our products and services, please contact us on our toll free number 086 133 2875 or one of our relationship managers.

Western Cape & Eastern CapeSam Haasbroek T: 072 55 104 99E: sam@debtplan.co.za

Gauteng & Free StateBianca MaraisM: 084 491 0997E: bianca@debtplan.co.za

Call us on 0861 33 2875 www.debtplan.co.za FSP 30490

Debtplan is a niche based insurance service provider within the debt review industry. Our aim is not just to add value to consumers during their debt review process, by providing them with debt risk related products that can save them money, but also serving as the conduit between the debt counsellor and their client`s. Should you as a Debt Counsellor or consumer require further information on our products and services, please contact us on our toll free number 086 133 2875 or one of our relationship managers.

Call us on 0861 33 2875 www.debtplan.co.za FSP 30490

Completion of Applicant and Generation of Form 19 Clearance Certificate

When a consumer has paid up all their debt or the debt has been written off, the DC should complete the consumer’s application by updating the consumer’s status to complete and issuing a form 19 clearance certificate. The user needs to have permission to be able to do this function. Permission can be assigned to a user by a Debt Counsellor Admin user:

An applicant can only be updated to Complete – Consumer Paid Up if the applicant status is “Returned Needs Attention”. Once the applicant status has been updated to “Complete – Consumer Paid Up”, the user cannot update the applicant status to “Complete – Consumer Paid Up” again, but will be able to print out the clearance certificate multiple times.

DEBT

WIS

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Steps on completing a consumer’s application: On Debt Wise Solutions, Debt Counsellor Interface:

1. Go to applicant list and go into applicant details (click on open)

2. Click on Other Options Menu Option > Complete application

3. The system will display a pop up window with a list of all the creditors of the applicant, each creditor’s status (e.g. Outstanding Balance, Paid Up or Written Off), account reference number, name, creditor reference name, COB balance and outstanding balance.

a. The applicant can only be updated to complete once all creditors have been updated to

Paid up or Written Off. b. A creditor can be updated to Paid Up or Written Off at the Balance Adjustment function on

the applicant Budget screen ONLY if the applicant status is “Returned needs attention” (please refer to steps below).

c. Adjust COB balance to a zero balance

i. On the applicant creditor screen, click on the “Adjust Balance” button:

ii. Select the balance adjustment method of “Zero Balance (creditor paid off)” and enter the effective date and reason for adjustment. Click on the “Confirm Zero Balance” button:

iii. The system will prompt you to review your entered details and to enter your password. Click on the “Confirm Balance Adjustment” button

iv. Once the adjustment has been confirmed and done, the balance will be displayed as 0:

v. Go back to the “Complete Application” menu option. The creditor will be displayed as “Paid Off”:

d. Write off COB balance:

i. On the applicant creditor screen, click on the “Adjust Balance” button

ii. Select the balance adjustment method of “Write off Balance” and enter the effective date and reason for adjustment. Click on the “Confirm Balance Write-off button” button:

iii. The system will prompt you to review your entered details and to enter your password. Click on the “Confirm Balance Adjustment” button: ( as displayed above)

iv. Once the adjustment has been confirmed and done, the balance will be

displayed as 0:

v. Go back to the “Complete Application” menu option. The creditor will be displayed as “Written Off”:

e. Once every creditor has been updated to “Paid Up” or “Written Off”, the list will be displayed as follows and you can click on the button “Complete Applicant” and “Clearance Certificate”

f. The applicant status will be displayed as “Complete – Clearance Certificate Issued”

Debt review and distribution software.Proud Software provider to DC Partner, Payment Distribution Agency.

https://debtwisesolutions.co.za

CASE TO WATCHA little background to the case: The consumer had been under debt review in 2010 with Octogen. However, due to dissatisfaction, the consumer withdrew from their services particularly because many creditors had terminated the debt review. Then in August 2011 the consumer (after more than half a year) re-applied for debt review with Munnik Debt Counselling . Most of the other creditors complied, with the exception of FNB who refused to participate in the new debt review as they claimed the debt review was terminated.An interesting point to note is that FNB claim a S86(10) termination notice is perpetual and remains in effect for any and all debt reviews to followed in the future.FNB sent the consumer a S129 notice 6 days before application for debt review with Paul Nieuwoudt , but the 10 days notice had not expired, and the consumer decided to accept their proposal to approach a Debt Counsellor thus the argument is that FNB must be

included in the review. In September 2011 FNB issued Summons against the client in the North Gauteng High Court for the consumers house bond. This would seem to indicate that FNB were in contravention of S88(3) and were acting in bad faith in a debt review under S86(5)(a)(b). Instruction was given to Advocate Hendrik Jansen Van Rensburg to oppose the application for Summary Judgment.Here is what happened at the High Court: On 18 Oct 2011 Judge van der Byl in term of S130 and 85 of the NCA ordered the matter to be heard for restructuring in the Klerksdorp Magistrates Court. The matter in the high court was postponed sine die.On the 11 Nov 2011 Paul Nieuwoudt of Munnik & Associates was successful in the application at the Klerksdorp Magistrates Court and a debt restructuring order was granted (case no. 13465/2011) . Now the matter will resume in the North Gauteng High Court in December where costs will be applied for.

FNB v A KOBASHE - North Gauteng High Court, Debt Counsellor: P Munnik.

DEBT COUNSELLING

AA Debt Counselling CentreAnthea JohannesNCRDC531Tel: +27 (0) 21 982 0522Cell: +27 (0) 84 402 7032

Alan Watts NCRDC 962NCR registered Debt Counsellor Tel: 084 4448439 Fax: 086 6501954alan@active-debt-counselling.co.zawww.active-debt-counselling.co.za

Central SA Debt Counsellors082 950 7806Fax: 086 563 1621

Consumer AssistJohann VermeulenTel: 0861 628 628

Credit Matters021 431 9100info@creditmatters.co.za

CS Debt CounsellingBernidene Smith NCRDC 764057 352 4115/352 5000Welkom - Free state

Darran ManikamNCRDC704debt@mailbox.co.za

Debtbusters0861 663 328 (NO DEBT)

Debt Budgetph. 021 701 7744

Debt Solve Debt CounsellorsOffice: 033 397 0945

DEBTINCNCRDC’s 1071, 1188, 1189.Tel: (022) 713-2021Fax: (022) 713-2028Share Call: 0861 20 21 20E-mail: Info@debtinclusive.co.zaWebsite: www.debtinclusive.co.zaSMS: HELP to 35075

DebtSafe0861 100 999

Debt RehabColleen Van Wyk(BCom, LLB)Debt Counsellor NCRDC2619Tel: 083 290 0848Tel: 011 740 7374Fax: 086 716 9694Website: http://debtrehab.co.za

Debt RescueNeil RoetsNCR DC 474Cell: 083 644 7406Tel: 0861 800 009Fax: 086 523 0617E-mail: admin@debtrescue.co.zawww.debtrescue.co.za

Durban Debt Counselling ServicesSuite 112, 1st floor Union Club Building353 Sm ith StreetDurban, 4001Tel: 031 301-7893Fax: 031 301-5809phumla.ngema@telkomsa.net

Debt Counselling South AfricaCape Town BranchTel: 021 919 66 94Rod De WittNCRDC831Visit: www.debtcounsellingsa.co.za

Debt Knowledge Debt Counselling082 379 2337

Debtonators041 585 0276

Fincorp debt Counsellors ccCecilia Zwarts fincorpdc@yahoo.com

Holistic Debt Counsellorsinfo@holisticdc.co.za

Helpdesk Debt CounsellorsAllan HoffmanTel: 0861 000 754

Help-U-Debt (Vaal Triangle) WanineTel: 082 445 3967

Help-U-Debt (Potchefstroom)Madra083 390 3275

Help-U-Debt (Parys)Marilouise082 920 6249

SERVICE DIRECTORY

Help-U-Debt (Vanderbijlpark)Herma083 320 8303

MG Consulting NCRDC 1403Strand - Helderberg AreaTelkom : 021 853 4537 Mobile Phone: 082 450 7459 / 082 782 0595 Fax Number: 0866 220 690E-Mail: info@mgconsulting / cambouris.christina@gmail.comwww.mgconsulting.co.za

NDA Debt CounsellorsYour Trusted Debt CounsellorsGary Williams (NCRDC 143)Tel: 034 315 3880 Fax: 086 612 4112gary@ndad.co.za www.ndad.co.za

Think Green Debt CounsellingSandi Pauwsandipauw@mweb.co.zaTel : 012 991 6638Cell : 082 460 7800Fax : 086 219 2615

Incentive Debt Counselling“Paving the way to a Debt Free Tommorrow”Darran Manikam NCRDC704Tel: (031) 409 9379Fax: (031) 409 1327Cell: 0845898286Branches: Phoenix and Shallcross

Indigo debt counsellors CCTel: 087 808 9734 Fax: 086 580 8675 indigodc@iburst.co.za

Zuné Coetzer Debt CounsellorsNCRDC 159924 van der Stel StreetDan PienaarBloemfonteinTel: 051-4364515Fax: 086 5870 845Email: zunecoetzer1@gmail.com

BORDER REGION:

DRS BEACON BAYJohan PretoriusCell: 082 324 4038Office: 043 748 1139

DRS BUFFALO CITYHerman MariasCell: 082 378 3743Office: 043 7210652

DRS KING WILLIAMS TOWNHerman MaraisCell: 082 378 3743Email: herman@drssa.co.za

DRS CRADOCKOffice: 043 721 0652

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

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

EASTERN CAPE:

DRS ALBANYOffice: 041 373 9693Email: dcfull@drssa.co.za

DRS ALGOAMarius WeyersCell: 083 497 3219Email: marius@drssa.co.za

DRS BOND CHOICE P.E.Andrea AtkinsonOffice: 041 393 7000Email: andrea.atkinson@drssa.co.za

DRS CENTRAL EXPRESSDerryn FishOffice: 041 373 9693586 2020Email: derrynfish@drssa.co.za

DRS DESPATCHIsabe LandmanCell: 072 337 3328Office: 041 933 1189Email: isabe@drssa.co.za

DRS HUMANSDORPMorne SteynCell: 083 298 8182Office: 042 291 0135Email: Morne@drssa.co.za

DRS NKONKOBE (Fort Beaufort)Bernadine von der DeckenCell: 083 2859289Office: 046 645 1898Email: bernadine@drssa.co.za

DRS KIRKWOODKeith Le RouxCell: 073 207 1675Office: 041 451 0474Email: keith@drssa.co.za

DRS PORT ELIZABETHDerryn FishCell: 084 515 6135Office: 041 453 8961Email: derryn@drssa.co.za

DRS SIDWELL EXPRESSKeith Le RouxCell: 073 207 1675Office: 041 451 0474Email: Keith@drssa.co.za

DRS SOMMERSET EASTLuther De BruynCell: 082 568 2970Office: 042 243 1107Email: luther@drssa.co.za

DRS UTENHAGELynn LindoorCell: 083 7174 183Email: Lynnl@drssa.co.za

FREESTATE:

DRS GOLDFIELDS (Welkom)Irvin Billy (Derryn Fish)Cell: 072 114 4427Office: 081 319 0083Email: Billy@drssa.co.za

DRS MANGAUNGAmanda JohnsonOffice: 041 373 9693Email: dcfull@drssa.co.za

DRS FOREISTATA EXPRESS (Bloemfontein)Derryn FishOffice: 041 373 9693Email: dcexpress@drssa.co.za

DRS SOUTH FREESTATENelmarie De langeCell: 079 236 3615Office: 053 591 0734Email: nelmarie@drssa.co.za

GARDEN ROUTE:

DRS DE AARVeronique Louw (Derryn Fish)Cell: 076 382 2020Office: 053 631 1189Email: deaar1@drssa.co.za

DRS GEORGEFrancois Van ZylCell: 079 522 1930Office: 044 874 2820Email: francoisv@drssa.co.zaDRS EDEN (Hartenbos)Bruno MertschTel: 042 291 1083/4Email: brunom@drssa.co.za

GAUTENG:

DRS CENTURION EXPRESSAmanda JohnonOffice: 041 373 9693Email: dcfull@drssa.co.za

DRS LYNNWOODJunique JuliusOffice: 012 807 4339Email: lynnwood1@drssa.co.za

DRS PRETORIA EXPRESSBen VermeulenCell: 082 442 8654Office: 012 331 2145Email: bverm@lantic.net

DRS PRETORIA NOORDOffice: 041 373 9693Email: dcfull@drssa.co.za

DRS ROODEPOORT EXPRESSDerryn FishOffice: 041 373 9693Email: dcexpress@drssa.co.za

DRS RUSTENBURG Amanda JohnsonOffice: 041 373 9693Email: dcfull@drssa.co.za

KWA ZULU NATAL:

DRS GREYVILLEVyas JuggernathCell: 083 206 0300Office: 031 309 8716Email: vyas@drssa.co.za

DRS KOKSTADMelanie LouwrensCell: 083 269 0424Office: 039 727 1430Email: melanie@drssa.co.za

DRS MORNINGSIDE DURBANErica Mtshali (Amanda Johnson)Cell: 076 578 8660 Office: 031 301 5990email ericah@drssa.co.za

DRS PHOENIXVyas JuggernathCell: 083 206 0300Office: 031 309 8716Email: vyas@drssa.co.za

DRS PIETERMARITZBURGSanele ZuluCell: 083 543 3487Office: 033 394 8319Email: sanele@drssa.co.za

WESTERN CAPE:

DRS BELLVILLEPatricia BekkerOffice: 021 948 8523 / 4Email: patricia@drssa.co.za

DRS DIAMONDClive PalmerOffice: 021 421 8563Email: clive@drssa.co.za

DRS TYGERBERGCraig LakeyCell: 082 627 0957Office: 021 945 4062Email: craiglakey@drssa.co.za

DRS WEST COASTMarius CoetzeeCell: 082 978 4407Office: 022 713 3766Email mariusc@drssa.co.za

DRS SALDANHAMarius CoetzeeOffice: 022 713 3766Email: mariusc@drssa.co.za

DRS SOLUTIONSChristelle de VilliersCell: 084 586 5600Email: cdv@vodamail.co.za

U-Win Debt CounsellorsCoreli Roos - NCR DC 509Aliwal North, Burgersdorp, Bethulie, GariepDam, Smithfield, SpringfonteinCell:079 626 66241croos@global.co.za

Rihanyo Debt Counselling(012) 804 50 57

SUPPORT SERVICES

Business and Personal Website and Software, Design and Development Services. Contact Number: +27 76 382 0933 Email: info@myecommerce.co.za Web: http://myecommerce.co.za

Staff Line Ndizani Executive RecruitmentCell no: 083 3028163Direct Line: (011) 468 - 2150E- Mail: saki@staffline.co.za

Blank DesignFor all design and marketing needs including websites, brochures, business cards etc.Steve Rosenbergsteve@blankds.com083 700 2020www.blankds.com

DesigntimesSouth Africa’s creative resourcewww.designtimes.co.za

TRAINING

Compuscan Academy 0861 51 41 31www.compuscanacademy.co.za

FINANCIAL

ABSA Customer Debt Repair Line0861 005 901

Credit Ombudsman0861 662837

Experian011 799-3400 debtcounsel@experian.co.za

Eric StresoFinancial PlannerB Juris LL B CFP MBATel: 0833273358Fax: 086 612 7912Fair Debt0829019788 or 012-3772558ray@fairdebt.co.za

PACFIN Financial Solutions Head OfficeTel: +27 11 9757445Fax: 086536878336 Van Riebeeck roadKempton Park 1619pieter@pacfin.co.zaMonte Carlo BuildingNo 8 VoortrekkerstreetKempton Park 1619

Kempton ParkContact: Reyno CoetzeeTel: +27 11 3945363Fax: 0866048002Cell: +27 73 3690884kemptonpark@pacfin.co.za

Boksburg / GermistonContact: Armand PosthumusTel: +27 11 8921911Fax: 0865620378

NelspruitContact: Ann BakerTel: +27 13 7415559Fax: 0880 1374 15559Cell: +27 82 9024236jeleroux@telkomsa.netSpringsContact: Wynand MclachlanTel: +27 11 8113728Fax: +27 11 8113728Cell: +27 83 2754014/5wynmc@telkomsa.net

Gooseberry Business AdvisoryTel: 012 644 0589

NedbankDebt Rehabilitation & Recoveries Services0860 109 279

STD BankDebt review HelplineTelephone: 0861 111 402 TransUnion0861 482 482

ThinkmoneyFinancial comparison websiteContact: Gareth MountainTel: 079 0996 798www.thinkmoney.co.za

WIZARD Vereeniging Making Mortgage MagicWanine SmitTel:+27 16 454 1132Fax:+27 86 686 3678 Cell:+27 82 445 3967 www.wizard.za.com

FINANCIAL PLANNING

Eric StresoFinancial PlannerB Juris LL B CFP MBATel: 0833273358Fax: 086 612 7912

LEGAL

Brett Carnegie AttorneysTel: +27 (21) 4470332 Fax: +27 (21) 4470338 Mobile: +27 (0)82 320 6099 www.carnegielaw.co.zaSuite 23(B) Unit 8 Waverley Business Park Mowbray 7700

Scheepers AttorneysGerhard Scheepersschlaw@iburst.co.za

LUCID AttorneysTel: 011 880 1100Fax: 011 880 1101Email: info@lucidsa.comwww.lucidliving.co.za/attorney

Ludick Attorneysbev.ludickattorneys@gmail.com

Prinsloo & AssociatesAttorneys and conveyancersNanika Prinsloo Farm Bergamot, Paarl 7620P O Box 6199, Paarl 762014 Laing Street, Barrydale 6750Cell: 072-8558-106Fax: 086-623-5986nanika@vodamail.co.zawww.empowerlaw.co.za

RM Brown and Associates 601 Pier House, 13 -17 Heerengracht, Cape TownDocex 138 Cape Town t: 021 431 9127 f: 021 425 0875 e: lodea@rmbrown.co.zaAgiliti CCColleen Van Wyk(BCom, LLB)Tel: 083 290 0848Tel: 011 740 7374Fax: 086 716 9694Website: http://agiliti.co.za

CREDIT BUREAUS

Compuscan 0861 514 131www.compuscan.co.za

Computer Profile Bureau0861 28 7328www.c-p-b.co.zaExperianwww.experian.co.zaBusiness- 0861 63 60 70 Consumer- 0861 10 5665

Micro Lenders Credit Bureau 0861 28 7328 www.mlcb.co.za

TransUnion 0861 886 466www.transunion.co.za

XDS 0860 937 000 www.xds.co.za

OTHER

Association of Debt Recovery Agents: 011 781 3337 www.adraonline.co.za

Banking Ombud0860 800 900 www.obssa.co.za

Credit Bureau Association011 463 8211www.cba.co.za

Credit Providers Association011 789 6825 www.cpa.org.za

Department of Trade and Industry0861 843 384 www.thedti.gov.za

Financial Advisory and Intermediary Services Ombud012 470 9080 www.faisombud.co.za

Financial Services Board012 428 8000 www.fsb.co.zaFurniture Traders Association 011 789 6770

Legal Resources Centre011 836 9831 www.lrc.org.za

Long Term Insurance Ombud021 657 5000 www.ombud.co.za

Micro Finance South Africa012 345 0809 www.mfsa.net

Motor Industry Ombud012 841 2945 www.miosa.co.za

National Credit Regulator0860 627 627

Ombud for Short term Insurance011 726 8900 www.osti.co.za

Pension Funds Adjudicator021 674 0209 www.pfa.org.zaSouth African Fraud Prevention0860 101 248 www.safps.org.za

The Banking Association011 370 3500 www.banking.org.za

SA FRAUD PROTECTION SERVICE (FREE SERVICE)www.safps.org.za0860 101 248

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