IS DEBT REVIEW EXPENSIVE?www.debtfreedigi.co.zaJuly 2017

South Africa’s debt counselling magazine

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Don’t expect to hear an endless amount of“spin”aroundwhythingsfailed!.

As human beings we have the drive to improve our lives and situation. It is totally normal and in almost every facet of our daily lives we try to do more, do better and do it easier. It manifests itself in the way we buy new things for our homes, try to earn more money and how we give ourselves treats and rewards, the luxuries in life. That is one of the reasons why dealing with debt can be so difficult. After the benefit of the credit - which fools us into thinking we are progressing - we eventually have to deal with the debt – which then makes us feel like we are moving backwards.

Life in debt review is not one of luxury. It is one of covering the basics while shedding the extra weight of the debt we have accrued. In reality, it is actually moving onward and upward. Each month we have less debt and are one step closer to being debt free but it might not always feel that way. To get help many have had to consult experts and pay them for assistance. Pay more to get out of debt? Does that seem right? In this issue we consider if debt review is worth it. Is it value for money? We look at the costs and ask: is it expensive or not?

We also look at the recent industry news and economy. Some big things are coming in August so, be sure to check out our “News Section”. We also have some tips for debt review success in our Debt review School articles. We also have reviews and letters from readers and much more.

We hope you enjoy this issue as it informs you, motivates you and helps you see that you ARE taking an important step towards a more successful life by dealing with your debt. A step that leads you to better things. A step towards financial freedom and becoming debt free.

FROMTHE

EDITORSDESK

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CONTENTS

DON’T MISSYOUR FEE

PAYMENTS

NEWS

SERVICE DIRECTORY

TWIN PEAKS GOOD NEWSBAD NEWS

IS DEBTREVIEW

EXPENSIVE?

Debtfree Magazine considers its sources reliable and verifies as much information as possible. 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

any responsibility whatsoever for their activities. Debtfree Magazine contains material supplied to us by advertisers which does not necessarily reflect the views and opinions of the Debtfree Magazine team. No person, organization or party can copy or re-produce the content on this site and/or magazine or any part of this publication without a written consent from the editors’ panel and the author of the content, as applicable. Debtfree Magazine, authors and contributors reserve their rights with regards to copyright of their work.

DISCLAIMER

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Is Debt Review Expensive?

We all know that you get what you pay for. Buy a cheap ‘n nasty no-

name brand product from the guy on the station platform for a pittance,

and you will not be surprised if it stops working after a short while. At

the same time, many products these days, are outrageously overpriced.

Way too expensive for what you actually get. The same can be said for

certain services. So the question is: What about Debt Review? Do you

get what you pay for and is it expensive?

While some products are overpriced, a product or service that is a

bargain can also be suspicious. If the cost is too low, will the company

offering the service actually provide the full service they are selling?

Would you trust an open heart surgeon who offers to do the surgery, on

the cheap, in the back room of a local hotel for only R5000? Obviously

not! We understand that to get quality service, you often have to pay a

reasonable price.

Is Cheap Always Better?

Debt Review is a legal process done via court. It takes many hours for

the trained individual to assess your debt situation, consider the law to

ensure the consumer’s rights are protected and make a proposal to the

courts on how the debt could be restructured.

Debt Counselling is a Professional Service

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Plumbers, doctors, accountants and lawyers all charge professional fees. In some industries these fees are regulated by law or by association standards. In South Africa at present, there are no legal limits in the National Credit Act or regulations on what a Debt Counsellor can or can’t charge. Over the years however, the industry has set its own standard fee structure, which most Debt Counsellors charge. This normal fee structure is endorsed by the NCR. Debt Counsellors are trained professionals who pass a set exam and are vetted by the National Credit Regulator to practice debt review. They are entitled to charge a professional fee. Without it, they would not be able to run their business and assist consumers.

No Set Fees

Plumbers, doctors, accountants and lawyers all charge professional

fees. In some industries these fees are regulated by law or by association

standards. In South Africa at present, there are no legal limits in the

National Credit Act or regulations on what a Debt Counsellor can or can’t

charge. Over the years however, the industry has set its own standard

fee structure, which most Debt Counsellors charge. This normal fee

structure is endorsed by the NCR.

Debt Counsellors are trained professionals who pass a set exam and are

vetted by the National Credit Regulator to practice debt review. They are

entitled to charge a professional fee. Without it, they would not be able

to run their business and assist consumers.

No Set Fees

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At present, the DTI and NCR are investigating new fee structures and

maybe one day they will be included in the law, but in this article we

will deal with the fees as they are ‘commonly’ charged at present. The

fees consist of two parts; the first 2 months - where the largest portion

of fees are paid and then a small monthly amount until the debt is paid.

What Are The Fees?

The First Two Months

When a consumer enters the process, the Debt Counsellor performs a debt review and figures out what the consumer needs each month to pay their household needs and what they have left to pay towards their debts. This available amount for debt is then turned into a proposal to all credit providers and the court. Until the court makes a ruling on the suggestion and says the consumer is over indebted a temporary repayment arrangement is put in place and the consumer begins to pay according to this plan each month.

In the very first month, when the consumer starts repaying their debt through debt review, some of the funds are allocated to the Debt Counsellor.

If a consumer pays very little toward their debt, according to what they can afford, then perhaps all the funds will be allocated to the Debt Counsellor.

If the consumer pays a lot, then a larger amount will be allocated to the Debt Counsellor.

There are caps or limits that Debt Counsellors charge. At present, the norm is that if the consumer ends up paying any amount less than R6000 a month toward their debt then that full payment amount (whatever it is) will be allocated to pay the Debt Counsellors fee.

If under the restructured plan, the consumer pays more than R6000 a month toward their debt, then only the capped R6000 will be charged, no matter what the consumer pays. Some consumers pay up to R50 000 a month toward their debts because that is what they can afford to repay each month.

So, as an example: If the consumer can afford to pay R2500 toward their debt each month under debt review, then when they make their first payment of R2500 the full amount is set aside for the Debt Counsellor that month.

The Restructuring Fee

Debt review matters go to court or tribunal and most Debt Counsellors and consumers make use of attorneys to handle the legal side of things. Once again the National Credit Act remains silent on fees for this part of the process, but the legal fraternity does have guidelines and limits in place for legal work. Before starting this side of things, the Debt Counsellor will inform the consumer of the legal costs. Most of the time, this can be done (estimated) at the very first consultation. There is no indication of what exactly the legal fees are for but most of the time it relates to setting the debt review application before court and all those associated costs. Legal fees may also cover a monthly retainer or cover legal representation throughout the entire process for various services. Consumers can get more info on that from their attorney or DC.

The Legal Fee

From month 2 until month 25, an after care fee of 5% (of the restructured debt repayments) can be charged. There is a limit on these fees in that the amount can never be more than R400 a month, even if 5% would normally be more than that.

These fees ensure that a consumer continues to get service from their Debt Counsellor. This may include among other things, counselling, advice, assistance obtaining information from credit providers, tracking the consumer’s payments, helping resolve differences between the PDA and credit providers, an annual review of the consumer’s situation, amending the court order and many other things. If a consumer does not pay their Debt Counsellor, then like any other service you do not pay for, the DC would not continue provide any services (unless they felt like it for some reason).

After Care Fees

An Advocate of the High Court can charge their clients R6000 per hour for the time spent in court. Most cases take many hours to resolve and countless phone calls, emails, consultations and more, all of which are billed.

A consultant to the Department of Public Works can charge around R1620 per hour. Consultants to the Department of Public Service and Administration can charge between R900 and R1363 per hour. According to the South African Council for Property Valuer Profession if an arbitrator or mediator is needed to assist in a dispute they can charge (a minimum of) R12000 for a day. Their professional fee guideline shows that a professional Property Valuer with several years’ experience can charge R1600 per hour (or part thereof).

According to the South African Council for the Architectural Profession, an architect with less than 10 years experience can charge R1779 per hour and if they have more than 10 years experience they can charge R2963 per hour.

Back in 2014, a Debt Counsellors association conducted research across the industry and found that a Debt Review consists of over 50 hours total work per matter, and that at the time Debt Counsellors were earning on average R87.20 per hour. They also reported that at the time, around 1 out of every 5 clients never paid for the work done for them.

Is This Expensive?

An Advocate of the High Court can charge their clients R6000 per hour for the time spent in court. Most cases take many hours to resolve and countless phone calls, emails, consultations and more, all of which are billed.

A consultant to the Department of Public Works can charge around R1620 per hour. Consultants to the Department of Public Service and Administration can charge between R900 and R1363 per hour. According to the South African Council for Property Valuer Profession if an arbitrator or mediator is needed to assist in a dispute they can charge (a minimum of) R12000 for a day. Their professional fee guideline shows that a professional Property Valuer with several years’ experience can charge R1600 per hour (or part thereof).

According to the South African Council for the Architectural Profession, an architect with less than 10 years experience can charge R1779 per hour and if they have more than 10 years experience they can charge R2963 per hour.

Back in 2014, a Debt Counsellors association conducted research across the industry and found that a Debt Review consists of over 50 hours total work per matter, and that at the time Debt Counsellors were earning on average R87.20 per hour. They also reported that at the time, around 1 out of every 5 clients never paid for the work done for them.

NCR Issued, Non Binding Opinion on Fees

Due to the fact that most credit providers assist consumers in debt review

by dropping fees and charges on accounts, as well as interest charges,

consumers often save a huge amount over time. This saving soon

outstrips the fees paid to the Debt Counsellor, and allows consumers to

get out of debt sooner.

For example; creditors could charge a consumer (around) R60 a month

in account fees. Many consumers have between 8 and 12 different

accounts when they begin debt review. For simplicities sake, let’s use

the figure of 10 accounts, R60 x 10 accounts is R600 a month in fees

that credit providers will probably stop charging a consumer who enters

debt review. In a year, that’s R7200 in saving on just these small fees. It

can immediately be seen that based on these small fees, the cost of the

debt review is expeditiously recovered. Consumers who have dropped

interest rates on unsecured credit can save thousands of Rand quickly.

These concessions are negotiated with credit providers by the DC and

help consumers get out of debt ASAP.

Pay The Fees and Save A Bundle on… Fees?

Undoubtedly then, paying a professional DC for their services is well worth it and convenient. Since the fees are part of the restructured repayment plan (not over and above a consumer’s monthly debt repayments) this means the funds are available immediately after starting the debt review process. No need to save up for months before starting the process while things get worse and worse. The fees are built in from the start.

The majority of debt review fees are quickly paid in the first 2 months and consumers then only pay a small amount to ensure they get ongoing professional advice on handling their debt situation. Debt review is an incredibly cheap way to get professional specialized assistance and as a bonus, receive great concessions from credit providers to help you get out of debt, as soon as possible.

Debt Review Is Not Expensive

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Twin Peaks Coming and the NCR is Still Nowhere To Be SeenAt the end of June 2017, an important piece of legislationleadingtoTwinPeakswaspassedbyParliamentandsenttoPresidentJacobZumatosignintolaw.ItiscalledtheFinancialSectorRegulationActanditoutlinesthearchitectureforhowthe new “twin peaks” regulatory structure will govern thefinancialservicesindustry.

This move ties in with a plan going back to 2011 to try address gaps and weaknesses in the financial sector. In 2013, the proposed legislation was made available to the public for comment. A looming issue that was identified with the Act was that its provisions have largely ignored the future functions of the National Credit Regulator (NCR).

Rather than talk about the NCR the Financial Sector Regulation Act creates two new regulators: The Prudential Authority - Will be responsible for regulating prudential aspects of banks and all non-bank financial institutions. They will essentially look after the stability of financial institutions

The Financial Sector Conduct Authority - Will be responsible for regulating market conduct and safety of consumers. They will have to ensure that financial institutions treat consumers fairly and enhance the efficiency and integrity of the financial system. They will also provide consumers with education programmes and promote financial literacy.

At present, there is no fixed time given for the phasing out of the current structures of the Banking Supervision Department of the SA Reserve Bank (which will be replaced by the Prudential Authority) and the Financial Services Board (which will become the Financial Sector Conduct Authority).

To bring about the twin peaks model, the Minister of Finance will begin to make new regulations providing for transitional arrangements regarding the exercise of powers and performance of functions. Perhaps then the role of the NCR will be addressed. For now though, nothing will change until those regulations are made. So for now, all financial institutions are still regulated by their current governing legislation and bodies. Eventually however, each type of financial institution will be allocated a new licensing authority. Banks and insurers will fall under the Prudential Authority and other financial institutions will be allocated to the Financial Sector Conduct Authority. Then old laws will be phased out and new ones will come into place to facilitate the change.

The question remains where will the NCR fall in the new Twin Peaks structure?

NCR Crack Down On Club Fees

The National Credit Regulator (NCR) has recently launched a campaign to prevent credit providers from trying to charge fees in an unsanctioned way under the National Credit Act (NCA). In recent weeks, they have taken several credit providers to the National Consumer Tribunal (NCT) and asked for customer refunds, audits and fines.

Investigations began back in 2015 and focused initially on insurance charges. As a result, several Tribunal cases were heard regarding charging insurance that

With fewer consumers gaining employment and enteringthecreditmarket,tighterrestrictionsonlendingcriteria,andeverincreasingconsumersdefaultingonpayments,theretailindustryhasbeenquietlyrakinginafortuneincustomerclubfeestohelpoffsettheirreducedincome.

could never be claimed on. At the same time the NCR began looking at club fees and considered if credit providers were allowed to charge these fees under the NCA. The NCA and regulations has a simple list of things for which a credit provider may charge and the percentages they can charge for interest etc. So called Club fees are not mentioned.

Several firms such as Edcon, Lewis and TFG (who own Totalsports and Foschini) have been hauled before the NCT.

How You Sign Up MattersIn the matter involving Edcon, a tick box was included on the credit application form for the club. The fees for the club were charge for through the credit providers store card. This caught the eye of the NCT who ordered that Edcon pay consumers back billions of Rands in fees since the NCA came into effect, or since Edcon changed their club fee application process in 2013. An audit was ordered to identify how much, but around half of all their clients have club membership and the 2016 club fees alone came to an estimated R590 000 000. Edcon are appealing the ruling.

Lewis received an alternative ruling based on how they conduct the sign up process (they use a separate form) and calculate interest on their accounts. Lewis recently report making about R710 000 000 in ancillary services, and these may include the club fees they charge. The NCT however ruled in their favour and dismissed the matter. The NCR are appealing the ruling.

TFG only contact customers about joining their club via their call centre, after the credit agreement is signed. This may protect it from a negative ruling at the NCT but time will tell. A large part of TFG’s club offering (other than competitions and insurance) is their club magazine. They currently are making around R400 000 000 (four hundred million) per annum from the magazine.

If TFG did lose their case (and appeal which would automatically follow as Edcon have done) they could pay back an estimated R2.9 000 000 000 (two point nine billion) to consumers. If Edcon lose their appeal they could be forced to pay back an estimated R4.3 000 000 000 (four point 3 billion).

INDUSTRY CONSUMER

NEWS FLASHSURPRISING INTERESTRATE DROPThis month, the SA Reserve Bank Governor, Lesetja Kganyago announced that the Monetary Policy Committee (MPC) has decided to cut the interest rates. This came as something of a surprise since many had thought that rates would remain the same. Combined with the recent reduction in petrol price, this is set to assist credit users.SARB Governor Kganyago said that, after some deliberation, the MPC has decided to reduce the repurchase rate by 25 basis points with effect from 21 July 2017. This means it has now dropped to 6.75% per annum.The decision was not unanimous since only four members were in favour of a reduction. The other two members would have preferred an unchanged rate, but the final decision is a reduction.The repo rate is the interest rate at which the SARB lends money to commercial banks. They then add regulated profit figures or percentages and lend to the public. The cut means a little bit of relief for those consumers who were on the absolute edge of defaulting on

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repayments. It also however means less earnings for those with investments linked to the interest rate.

NCT DISMISSES DE-REGISTRATION APPLICATION BY NCRSince 2014, the NCR have been trying to get the National Consumer Tribunal to de-register a Cape Town Debt Counsellor. The matter began when the Debt Counsellor issued a press statement entitled ‘NCR sleeps as African Bank and consumers’ crash and burn’. This month, the Tribunal ruled on the matter and dismissed the case saying that the Debt Counsellor, Ms. Deborah Solomon, had the constitutional right, as a SA citizen, to speak out about concerns over public entities like the NCR. They said that her Conditions of Registration did not prohibit her from speaking about the NCR in the media.

NEWS CONTINUED

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DCASA ANNUAL CONFERENCE IN AUGUSTEach year the Debt Counsellors Association of South Africa holds a conference in Gauteng. The conference is a chance to address members about what the association has been busy with, and to host a number of informative speakers.This year there will be presentations from trainers, a DTI representative, information from the FSB on the coming Twin Peaks regulatory changes and also a speaker with internet marketing advice.

SUN FINANCE SOUTH AFRICA IN TROUBLEFollowing their initial success in regard to Allied Capitol (a company who offer to pawn your car while you still drive it), the NCR have now made an application to the National Consumer Tribunal in regard to Sun Finance South Africa. The NCT found that Allied Capitol’s pawn your car and still drive it offering is actually just a credit agreement in disguise and thus needs to be done according to the requirements of the National Credit Act. The NCR and would also like the Tribunal to fine Sun Finance and order them to repay consumers.

ANNUAL RENEWAL DEADLINE FOR NCR REGISTRANTSDebt Counsellors are reminded to pay their annual renewal fees to the NCR by the end of this month (July). Should a Debt Counsellor fail to pay their renewal fee they will no longer be allowed to perform the functions of a Debt Counsellor and their NCR registration will lapse. There is a short grace period after the deadline, but following that Debt Counsellors who miss the cut off will have to apply to be registered all over again (a longer process). Debt Counsellors are reminded that the renewal fee is now R500 plus a R250 fee for each branch they operate. Their headquarters are also considered as a ‘branch’ so, the minimum fee will be R750. Credit Providers must also not forget their annual renewal or will find any new credit agreements to be invalid and will have to refund consumers.been given a short time to comply and register.

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A while back, some pretty significant changes were made by the DTI to the regulations about credit life insurance. As is common with amendments and new regulations, some time is given for all industry players to get ready and make adjustments. Now these big changes are coming into effect on the 1st of August 2017. The idea of the new regulations was to stop credit providers milking consumers with high fees and with little disclosure on how to claim. Traditionally this type of insurance has had a very low claim rate even though every credit user has been forced to take this type of cover. It has been the secrete cash cow of the credit industry for many years. The new regulations are going to force credit providers and their insurance partners to lower their fees significantly.

New Maximum Credit Life Insurance Rates As Of AugustThe new regulations place minimum requirements and maximum caps on the fees that can be charged. Insurers can now only charge a maximum of R4.50 per R1000 of unsecured credit taken whereas before there were reports of as much as R11/ R1000 or more being charged by some. As usual, consumers should expect their credit providers to try stick to the maximum allowable rates to try to make as much money off them as possible.

Whenconsumers takeoncredit,creditproviders insist theytakeatypeofinsurance(eithertheirownorprovidedbytheconsumer)tocoverthedebt,incaseoftheconsumerdyingorlosingtheirjob.Thisiscommonlycalled‘creditlife’insurance.Mostconsumerssignforitanddon’treallyknowwhatitisorhowitworks.

Raising The Bar For Credit Life Insurance

Chose Your OwnFor a long time Debt Counsellors have been working with firms like ONE|SURE who have offered consumers in debt review really low insurance rates and great benefits. Consumers have been able to save lots of money that is better spent towards their debt or household needs by providing their own cover.

We caught up with Christopher Keuler, Divisional Manager- Debt at ONE|SURE on the changes to their product. “It is important to note that we have always been well below the proposed rate caps” said Keuler. ONE|SURE will be enhancing their Retrenchment and Temporary Disability benefit to 12 months.” In terms of the DTI notice, Critical Illness is not included as a prescribed benefit but we will continue to include Critical Illness as a benefit” says Keuler.” We have however changed it from a capital payment benefit to a 3 month payment benefit”. These benefits are over-and-above the Death and Disability benefits.

The maximum allowed rate per R1000 credit is now R4.50 for cover (plus a possible R1 more if it covers disability). In respect to ONE|SURE’s rates, Keuler had this to say: “we are pleased to announce that we will be maintaining our rate

Type of Credit Agreement Maximum CostMortgage agreement R2 per R1000Affordable housing mortgage agree-ment

R2 per R1000 (consumer under 55 years)R2.50 per R1000 (consumer over 55 years)

Credit Facilities;Unsecured credit transactions;Short term credit transactions;Developmental credit agreements; andOther credit agreements

R4.50 per R1000

If the credit life insurance policy provides additional benefits for loss of income as a result of temporary disability

The total cost of credit life insurance may be increased by R1 per R1000 for both benefits

Credit ProteCtion – debt review

ONE Insurance Underwriting Managers (PTY) LTD Reg No. 1996/008987/07 Authorised Financial Services Provider FSP8783 VAT No. 4370160501

A Member of A member of the Group

Underwritten by:

SuReApplied to go under debt review? Restructuring your monthly expenses?why not insure all your accounts on the one Credit Protection?

we will contribute towards your accounts in the event of the following:

• death – we settle the account• temporary disability – we pay the Debt Review payment for 6 months• Permanent disability – we settle the account• Critical illness – we settle the account• retrenchment – we pay the Debt Review payment for up to 9 months

At a rate of R 2.95 per R1000, our rates are among the best and our benefit structure is the best in the market.

ContACt one oR youR debt Counsellor! 0861 266 562 www.one.za.com

sam Haasbroek: 082 550 7294sam.h@one.za.com

marijke wessels:082 729 3833marijke.w@one.za.com

terms & Conditions aPPly

Credit ProteCtion – debt review

ONE Insurance Underwriting Managers (PTY) LTD Reg No. 1996/008987/07 Authorised Financial Services Provider FSP8783 VAT No. 4370160501

A Member of A member of the Group

Underwritten by:

SuReApplied to go under debt review? Restructuring your monthly expenses?why not insure all your accounts on the one Credit Protection?

we will contribute towards your accounts in the event of the following:

• death – we settle the account• temporary disability – we pay the Debt Review payment for 6 months• Permanent disability – we settle the account• Critical illness – we settle the account• retrenchment – we pay the Debt Review payment for up to 9 months

At a rate of R 2.95 per R1000, our rates are among the best and our benefit structure is the best in the market.

ContACt one oR youR debt Counsellor! 0861 266 562 www.one.za.com

sam Haasbroek: 082 550 7294sam.h@one.za.com

marijke wessels:082 729 3833marijke.w@one.za.com

terms & Conditions aPPly

Credit ProteCtion – debt review

ONE Insurance Underwriting Managers (PTY) LTD Reg No. 1996/008987/07 Authorised Financial Services Provider FSP8783 VAT No. 4370160501

A Member of A member of the Group

Underwritten by:

SuReApplied to go under debt review? Restructuring your monthly expenses?why not insure all your accounts on the one Credit Protection?

we will contribute towards your accounts in the event of the following:

• death – we settle the account• temporary disability – we pay the Debt Review payment for 6 months• Permanent disability – we settle the account• Critical illness – we settle the account• retrenchment – we pay the Debt Review payment for up to 9 months

At a rate of R 2.95 per R1000, our rates are among the best and our benefit structure is the best in the market.

ContACt one oR youR debt Counsellor! 0861 266 562 www.one.za.com

sam Haasbroek: 082 550 7294sam.h@one.za.com

marijke wessels:082 729 3833marijke.w@one.za.com

terms & Conditions aPPly

of R2.95/1000 on unsecured/short-term debt but will be increasing our rate to R2.00/1000 on mortgages, offering the full bouquet of benefits”. This will apply to all applications after 1 August. With their cover, ONE|SURE will assist consumers cover their debt review payments for up to an amazing 12 months if they are retrenched or temporarily disabled. This means no worrying about your monthly debt review obligations while out of work. This has helped many consumers avoid falling out of the debt review process.

Also important is Section 106 (4)(a) which relates to replacement. Previously credit providers used various reasons to refuse replacement of cover, more often than not, at a massive cost to over-indebted consumers. Under the new changes credit providers cannot refuse replacement as long as the replacement policy provides at least the benefits referred to in regulation 3 of the notice. “This is a significant victory for consumers which will go a long way in driving the right behavior” says Keuler. He went on further to say “Treating customers fairly must take priority above all, in our day to day business dealings”.

If consumers enter debt review they can always talk to their Debt Counsellor about finding specialized replacement credit life cover. This might help save a significant amount to rather cover payments towards their debt. Since the new rates only apply to new credit after 1st of August 2017, this does not mean that your existing cover with your credit providers will just automatically change. Consumers who have been under review from a while can themselves investigate alternative cheaper cover, if they wish to do so.

Credit ProteCtion – debt review

ONE Insurance Underwriting Managers (PTY) LTD Reg No. 1996/008987/07 Authorised Financial Services Provider FSP8783 VAT No. 4370160501

A Member of A member of the Group

Underwritten by:

SuReApplied to go under debt review? Restructuring your monthly expenses?why not insure all your accounts on the one Credit Protection?

we will contribute towards your accounts in the event of the following:

• death – we settle the account• temporary disability – we pay the Debt Review payment for 6 months• Permanent disability – we settle the account• Critical illness – we settle the account• retrenchment – we pay the Debt Review payment for up to 9 months

At a rate of R 2.95 per R1000, our rates are among the best and our benefit structure is the best in the market.

ContACt one oR youR debt Counsellor! 0861 266 562 www.one.za.com

sam Haasbroek: 082 550 7294sam.h@one.za.com

marijke wessels:082 729 3833marijke.w@one.za.com

terms & Conditions aPPly

ONE Insurance Underwriting Managers is an authorized FSP 8783, underwritten by Mutual & Federal Risk Finance. Terms and Conditions apply

Contact Maximus on 011 451 0041

S T U C KU S I N GA N C I E N TTECHNOLOGY?

A while back, the DTI published new fees which would apply to registrants with the National Credit Regulator (NCR). Debt Counsellors were shocked to find out that they were now expected to pay many hundreds of Rands annually in NCR registration fees. The new regulations also set a new date for annual renewal of certification.

A Few Hundred Rand in Missed Fees Cost a Debt Counsellor Her Business

As a result, some Debt Counsellors who had registered at other times of the year, were recently asked to pay an additional small fee to cover the months between when they were registered, until the new annual renewal date.

The NCR sent out notifications and circulars about the matter and warned that any Debt Counsellor who missed the payments (of either the pro-rata payment until the annual renewal date or the renewal fee at the end of July 2017) would find their membership suspended. There would be a short grace period for renewals and then, after a cut-off point, Debt Counsellors would have to reapply for their registration certificate, just as they did when they first became a Debt Counsellor.

In the past, this process has a reputation for being a long and arduous one. While some registrants have, in years past, received their registration after only a few weeks, others have had to wait for as long as 9 months to get the “all clear” to begin their practice.

The NCR have thousands of Debt Counsellors on their web database, but it is widely known that only a few hundred actively practice. Most Debt Counsellors have found the industry to be unprofitable and have not been able

to make ends meet by focusing solely on debt review. The NCR now seem to be on a drive to clean house and this involves increasing annual renewal fees.

In September 2016, a veteran Gauteng Debt Counsellor made the ‘usual’ renewal fee payment and did not realize that there would be additional costs for fees to remain registered (having received, as she puts it, an ‘unreadable’ fax from the NCR about it). Then something happened that made her sit up and pay attention. The NCR gave instructions to the Payment Distribution Agencies to withhold income payments to any Debt Counsellors who had not paid the necessary fees. The Debt Counsellor (and many others) scrambled to try figure out why she had not received her payment for her work from the month. The PDA pointed her to the NCR who had given them the instruction. Liaising with the NCR proved to be disappointing for the Debt Counsellor since she had short paid the fees by only a few hundred Rand.

As the month ticked over and she was still not able to get paid, she faced a tough choice. The NCR informed her they were in the process of moving her clients to another Debt Counsellor!

The consumers were not offered the opportunity to choose their new Debt Counsellor, but would be duly informed of who it was. The Debt Counsellor had the usual bills and staff salaries to pay, and realized that she would have no future income from her consumers - who she had helped for several years and would not receive the money for the two months which had passed since the NCR had closed the income taps at the PDA. As the third month began, she contemplated beginning the registration process again but was unsure if her clients would ever be returned to her if she did so.

As a single mom with 2 children to care for, and no immediate income or promise of future income, she decided she would sadly have no real choice but to close her practice and attempt to earn a living elsewhere.

She sent an email to her former clients about the situation and explained that, since the NCR would not accept payment, she was no longer considered to be a registered Debt Counsellor. She was no longer allowed to perform the functions of a Debt Counsellor and help the consumers with debt review matters at all.

She says that, although she has spent many years assisting consumers, she is now done with debt counselling and hopes her clients will be able to deal directly with the NCR and new DC, now that she is no longer allowed to assist them.

Several Debt Counsellors have been affected by the NCR’s very clear and firm stance on the cut-off date for renewal fees and all registrants can learn from this case.

Itdoeshoweverraisesomeinterestingscenariosandquestions:

If a person loses their registration then, can they look at client files, send them documents or assist them in any way?

Would they be breaking the law if they did so?

The NCR site says they must not conduct the business of a Debt Counsellor.

If consumers have only signed contract documents and power of attorney with a particular Debt Counsellor, since the court order is made in the name of the Debt Counsellor, what new documentation is needed in this situation?

Does the CPA ensure consumers could choose which Debt Counsellor to be transferred to or is it the sole mandate of the Regulator?

Can the new NCR elected Debt Counsellor refuse to take on this type of client?

Imagine too, if one of the major banks missed the payment grace period cut off by a day and then had the Regulator move all their clients to another bank.

Be sure to pay your renewal fees on time, check you have paid the correct figure and that the funds have been received. Ensure you receive your certificate on time each year for use at court and to allow the PDAs to distribute funds to you.

Registrants,consideryourselfwarned!

If you miss the cut off the NCR will display this message on their data base next to your name:

The following Debt Counsellors’ registration has lapsed in terms of Section 52(4)(b) of the National Credit Amendment Act. The effect of a lapsed registration is that debt counsellor is no longer authorised to provide debt counselling services and should not offer or conduct the business of a debt counsellor, or hold themselves out to the public as being authorised to offer any such service.

To date, the NCR have convinced the National Consumer Tribunal to cancel the registration of 20 Debt Counsellors.

Over 270 Debt Counsellors have voluntarily cancelled their registration and recently many others have had their registration lapse voluntarily or otherwise.

TheNCRhave till 1st August 2017 toissuecertificatestoallDebtCounsellorswhotimeouslyrenewed

DO YOU WANT THE GOOD OR THE BAD NEWS?

IN A NUTSHELL

The last three months have been beleaguered by ‘bad’ news: the double downgrade rating agency blow, the falling Rand, and political instability. These and other economic factors have a very real impact, on imports, fuel prices and the general cost of living.

On 20 July 2017, the Reserve Bank announced a repo rate cut of 25 basis points, which is good news if you have a home loan, vehicle finance and other major debt.

Not such good news if you are retired and relying on the income from your interest bearing investments. This decision by the Reserve Bank was as a result of the declining rate of inflation over the last two-quarters. However, the low inflation rate is caused less by a real drop in consumer prices, and more by a drop in consumer demand, which is closely tied to economic growth.

According to Dave Mohr (chief investment strategist) and Izak Odendaal (investment strategist) at Old Mutual Multi-Managers in a Fin24 article entitled ‘Breathing room for consumers’ household debt expressed as a percentage of household disposable (after-tax) income, “declined from a peak of 88% in 2008 to 73% in the first quarter. Put differently, the ratio is lower than a decade ago.

The cost of servicing this debt (that is the interest burden) has stabilised at around 9.5% of income in the first quarter. It climbed by a full percentage

point from 2014, eroding household spending power. In 2008 this ratio hit 14%, contributing to a deep consumer recession. Household incomes are growing faster than debt (which is barely growing at all) and therefore households are de-gearing.”

In the same week in which the Reserve Bank made its repo rate cut, Eskom released its yearly financial results. The acting CEO Johnny Dladla assured the media conference that Eskom is “financially sound and stable”. Yearly revenue increased by 7.9% due to increased export sales and the hike in electricity tariffs.

However, the backlash from the media following the results paints a different picture. An article in the Daily Maverick, by Greg Nicolson, reveals that the announcement of Eskom’s financial results was mired by more questions than answers including the allegation that Eskom is in financial distress and cannot cover its costs beyond the next three months.

Based on the economic facts a general conservative trend is being followed by consumers. The decline in interest rates does release some pressure, but the reality is that the future still looks uncertain. The political noise will

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continue to hamper investments and electricity prices are likely to go up, given Eskom’s tenuous state of affairs. Mohr and Odendaal state that although receding inflation may increase real spending, these gains will likely be taken away by SARS next year as the finance minister faces another tax revenue shortfall leading up to his first mini budget.

All this can be very confusing for consumers. However, the reality remains that the economic conditions do not favour over-spending and over-indebtedness. If there are any gains to be made from the lower interest rates, these should be used to repay existing debt obligations. If you’re a Debt Counsellor please share this with your clients.

continue to hamper investments and electricity prices are likely to go up, given Eskom’s tenuous state of affairs. Mohr and Odendaal state that although receding inflation may increase real spending, these gains will likely be taken away by SARS next year as the finance minister faces another tax revenue shortfall leading up to his first mini budget.

All this can be very confusing for consumers. However, the reality remains that the economic conditions do not favour over-spending and over-indebtedness. If there are any gains to be made from the lower interest rates, these should be used to repay existing debt obligations. If you’re a Debt Counsellor please share this with your clients.

Jothie BechooATTORNEYS & DEBT

COUNSELLOR

Taking care of all your legal needsSpecialising in Debt Review Applications for Debt Counsellors/Attorneys

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Die Republiek van

SKYT AFRICA

Ongelukkig, waar dit finansies aanbetref, bly dit vir vele nog winter en n lang nag. Werkloosheid en verminderde werksgeleenthede blyk aan die orde van die dag te wees en baie mense gaan sukkel om kop bo water te hou.

As jy jouself in hierdie benarde posisie bevind en jy skuld geld gaan kyk gerus na die kontrak wat jy geteken het toe jy die skuld aangegaan het. Die meeste van die kontrakte, indien nie almal nie, het n veresekeringsdekking juis om jou te beskerm in hierdie moeilike tye waarvoor jy ten duurste betaal en dit maak deel

van jou maandelikse paaiement. Dit behoort jou genoeg blaaskans te bied sodat jy met n kundige kan gesels oor die pad wat jy finansieel die toekoms in moet stap.

Baie van ons, veral mans, het hierdie trots dat ons self dinge kan regmaak. As die finansies druk kan die pad wat ons stap nie meer so lekker geteer wees nie maar deur, om nie kundige se hulp te vra nie, kan ons self verantwoordelik wees vir die duwweltjies wat nou op ons pad gestrooi is, en dan is ons nog kaalvoet ook.

Hallo almal. Ja! So het die kortste dag en die langste nag in die winter gekom en gegaan, nou sien ons uit na die lente waar alles hopelik gaan begin groen word en groei.

Groete mag jou lente vroeg aanbreek.

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 befunny/offensive/amusing/interesting feedback@debtfreedigi.co.za

Dit kan en gaan bleddie pynlik wees. Moenie jou lente uitstel en die pad moeliker maak nie. Lees die tekens betyds, die Lotto is n droom, skuldinvorderaars is

n werklikheid, praat met n kundige Debt Counsellor, moenie die die pad alleen stap nie. Elke goeie sport persoonlikheid het immers n coach, kry vir jou n coach.

Regional MeetingsKwa-Zulu Natal: 26/10/17Western Cape: 07/11/17Gauteng: 24/10/17Freestate: 20/10/17Eastern Cape: 27/10/17

The Date of the DCASA Annual Conference isWednesday the 16th August 2017

Book Now. Hurry, Seats Almost Sold Out

DEBT COUNSELLORS ASSOCIATIONS ANNOUNCEMENT BOARD

Experts explain “co-operatives”as a legal structure:

https://soundcloud.com/user-302515188/co-operative-interview-newera

www.newera.org.za

www.bdcf.co.za

Members must remember to pay their annual NCR registration renewal. (see this month’s newsletter in this issue)

Talk to us: bernidene@csdebtcounselling.co.za

www.allprodc.org

www.dcasa.co.za

Our main focus in 2017 is on ensuring that all BDCF members comply with all legislation, regulations and conditions of registration.

We have already strengthened our communication channels this year and will look to continue to do so.

We are excited that special projects are being launched for members and their clients in areas such as incapacitation or death of DCs,usage of PDAs by consumers, as well as fees.

JULY

www.allprodc.org FACEBOOK: www.facebook.com/AllProDC / TWITTER: www.twitter.com/AllProDC

Tenacity MeetingA member of the Alliance of Professional Debt Counsellors will be visiting credit provider Tenacity (who handle matters for Ackermans, Dunns, ShoeCity and others) during August 2017. We will discuss their escalation process and contact information. Members (and others) are encouraged to submit any matters they would like raised during the visit on the members Facebook page.

Online Members Meeting in AugustMembers will receive a link to the August online conference meeting via email. All members are encouraged to try to log in and join in the conversation. All members need to do is click the link and the conference software will do the rest. The date will be announced following the poll on our Facebook page (to find the most convenient date and time for the majority of members). Members will receive the invite email on the morning of the meeting.

NCR RenewalMembers are reminded that it is time to pay your annual NCR renewal fee before the end of the month. It is important to also send the NCR the proof of payment and make contact with them to make sure they have registered the payment and have your current details.

Renewals enquiries can be directed to Sydney Ntimane at the NCR: SNtimane@ncr.org.za

NEWSLETTER

Enterprises UP and ABSA open new learningavenues for the banking sector and credit providersEnterprisesUniversityofPretoria (EnterprisesUP) andABSA have launched a training intervention with agroupofdelegates in thebankingandcreditproviderindustries.

This course is known as TheAdvanced Programme in DebtReviewanditwaspilotedin2016.Over23AbsaandStandardBankstaff have already successfully graduated and received theircertification.

Opentoemployees in thebanksand other credit providers whohave specific responsibilitiesrelating to debt review, theprogrammeaimstoprovidethemwith a comprehensive overviewandlegislativeframeworkarounddebt review in South Africa, as

well as the measures to prevent over-indebtedness.

The2017programmecommencedinApril2017,withtwogroupsof25 new delegates attending thecourse. Presented in a blendedmode that takes advantagesof technology-enabled and-assistedlearning,theprogrammeminimisesthetimethatdelegatesneedtobeoutofoffice.

Online components of theprogramme optimise on self-directed learning away from the

traditional classroom setting,where delegates can accessadditional reading material,multimedia, and other onlineresourcesthatalsoformanintegralpartof theirpreparationprior toattendingcontactsessions.

Interactive workshops form partof the face-to-face component of theprogrammeandarefacilitatedthrough group discussions and/or collaborations to allow forinteractionandrelevance-orreal-world-based learning. This againis moderated by the assistanceandsupportofonlineforumsfordelegatestopostandrespondtoquestions or assignments posedbythecoursepresentersandtheirpeers.

The programme is divided intosix learningblocks and focusontheapplicationandinterpretationoftheactaswellasclassificationof credit agreements, eg creditfacility, credit transaction, andcredit guarantee. The differentcategories of credit agreements:small, intermediate and large aswellasinstitutionalarrangements

undertheActarealsoexplained.Alloftheaboveisillustratedwithpracticalexamplesandthelatestapplicablecaselaw.

The realisation of the need forsuch training in the industryhas also instigated the roll-out of further intakes on theprogramme and the schedulingofadditionalcoursesthataresettostartattheendofAugust2017.Severalcourseswillalsopossiblybe scheduled concurrently to optimiseonfocusareasthatneedto be addressed further.

For more information onsharpening your debt reviewskillsviaoneofourwiderangeofcourses or for advisory servicesonstartingyourbusiness,dropusamailorcontactuson:+27(0)124342500

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If you are looking for a company with an entrepreneurial spirit at its heart,and are keen to join a dynamic, hardworking but fun team contact us.

We would love to hear from you!

Mail us on info@meerkat.co.zawww.meerkat.co.za/careers/

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DEBT COUNSELLING COMMUNITY SUPPORT

DEBT COUNSELLING COMMUNITY SUPPORT

ADOPT A FAMILY

Due to generous sponsorship by supporters, such as DC Partner PDA, our “Adopt a Family” project has been able to to assist a number of vulnerable debt review families. This month, we were able to help

with one family’s medical bills, assist another with a burst geyser and help cover the water and electricity bill of another loyally paying debt

review family.

DCCS want to say a huge

THANK YOUto all of our generous supporters

Remember to contact admin@dccsupport.co.za to arrange payment or to offer support for our upcoming projects.

Check out our website for pictures, stories and more and as always if you would like to get involved in one of our projects (like our back to school project for Jan) then we ask that you

simply email admin@dccsupport.co.za

Letter from

a reader

by Jack Darier

It’s an all too familiar situation for thousands of South Africans on a daily basis;

Your phone rings and you nervously look at the number on the screen, instantly your stomach turns with a knot as you recognise the number and once more you are faced with the dreaded choice of answering or blocking the call. You know if you an-swer you are undoubtedly going have to face a barrage of aggressive interro-gation and questions from the person on the other end. If you don’t answer you know it will only be a matter of time before the cycle repeats itself.

If your initial inclination is leaning to a description of the dreaded debt col-lector or legal firm harassing people for money, then you are likely in a po-sition where either yourself or some-one you know has experienced this difficult and stressful situation.

The current sociopolitical situation, global economic factors, regres-sive local economy, poorly regulated banking practices and general corrup-tion in this country has a created an environment where the out of con-trol debt is starting to effect more and more people on a daily basis.

Note* before I continue I must re-iterate that I do not purport to be a

legal practitioner and anything stipu-lated herein should not be construed as legal advice but more of a guide for people to educate themselves about their rights.

The national credit regulator and banking ombudsman, who are sim-ply abysmal at reigning in the banks and their fraudulent behaviour, have attempted to provide persons suffer-ing from crippling debt a mechanism to offer the borrower some reprieve from unscrupulous attorneys and debt collectors. This is by way of appoint-ment of a debt counsellor to the bor-rower. If you are in debt and facing serious stress I suggest you investigate the appointment of a debt counsellor however the merits of this should be investigated by everyone in great de-tail. This matter is not the focus of this article however.

What if I were to a highlight aspects of the national credit act of 2000 and the banking act which may offer reprieve from debt collectors and demands made on you by legal firms for de-faulted loans? This is something you will never hear from the legal industry, law societies, regulators as they make money off the debt collection sector.

After undertaking extensive research and investigations into securitisation and sale of debts by the banks, I have

uncovered further fraudulent activ-ity being perpetrated on a mass scale collectively by the major banks, debt collectors and legal firms across the country.

The major banks are selling debt to debt collection firms and legal firms. A clear and coherent determination should be made here, however, to dif-ferentiate this practice from securitisa-tion.

SecuritisationIn a securitisation scheme, the bank bundles loans together and sells this package to the Special Purpose ve-hicle for the purpose of them issuing for trading on the JSE. I discuss this in other articles (check those out here) but the semantics is not important here. In this instance, the debts I wish to discuss have not had any defaults.

Selling DebtThe other form of debt sales is what I am discussing herein. When a bank issues fairly small loans or there are other form of small debts on credit cards, overdraft facilities, revolving credit facilities and so forth, these typi-cally do not form part of securitisation schemes and thus on their books are essentially assets as they have legal debtors owing them with interest on the principal amount lent to the bor-rower (ie. a debtors book) (I know it

start sounding like gibberish but bear with me….)

The bank is in the business of loaning out money to make money but un-fortunately due to banking laws they are required to maintain a certain level of liquid cash in the bank in order to issue more loans (BASEL Banking prin-ciples and rules). As such, to loan out more, at interest, you have to retrieve some levels of cash from what you lent out before so as to enhance the baseline cash liquidity requirements.

So, realising the cost of implement-ing legal action against thousands of defaulting borrowers on small credit agreements would be costly and not worth the cost the banks sell off these loans in packages to debt collection and legal firms. They sell off the pack-age at a much lower value than what the claims are worth in the package so that the debt collectors and legal firms can go and make demands on these defaulting borrowers, intimidate them and then hopefully recover value of more than what they paid for the package. A simple cost-margin-profit business model. Pay less but collect more…maybe.

The bank has also now received some cash return that it would have oth-erwise have simply lost or found too expensive to collect themselves. Now

it has more cash on hand and so can issue more loans to more consumers!

Why Should You Care?You are likely scratching your head now and asking…well…how does this subject help me?

Well this is essentially the crux of the matter and hereafter you will hopefully have acquired a better understanding of the local credit and banking laws and understand the applicability in your fight against harassment by debt collectors or a legal firm.

The local debt collector and legal firms who are contacting a borrower making demands are often commit-ting fraud on mass proportions:

1. they are making demands claim-ing to act on behalf of the banks/lender as the legal creditor when, in fact, the bank/lender is no longer the legal creditor as they have sold the loan to the firm in question. The banks no longer have locus standi to make claims against borrowers if they sold the debt and any debt collector or legal firm who attests that the bank is the legal creditor when they are not is acting fraudu-lently

2. these firms are untruthful in their correspondence and dealings with defaulting borrowers

3. these firms are actively re-packag-ing and selling debt through mul-tiple transactions to other players in the market and are not notifying borrowers on the chain of owner-ship on said debts which is a strict requirement of NCA of 2000

4. In many instances, there may not even be approval from the borrow-er in the credit agreement for such a sale by the bank and/or collection firms as per requirements of the NCA of 2000

So what does this all mean?Collecting firms are aware of the legal grey area in which they are operat-ing and are aware of contravention of multiple credit, financial and banking regulations and as such simply avoid divulgence of any of the matters high-lighted above. They are also aware of the cost of taking matters to court so, they use the modus operandi of in-timidating and harassing borrowers for money until they recover on the debt they bought for so cheap. It is a lucra-tive business after all.

They train their staff and debt col-lectors to utilise these tactics to ef-fectively scare the defaulting bower into paying them. I also surmise their staff are on incentive or quota initia-tives to meet collection targets which explains why the person on the end of the phone or sending you letters of

demand are rude, thick-skinned and downright callous.

You may have some reprieve or es-cape from the debt based on these critical analysis points:

• You entered into a credit agree-ment with the principal lender and if they choose to sell your loan without adhering to credit regula-tions, they are taking this risk and you now have a loan for which you no longer have any formal credit agreement in place with any legal entity. They didn’t notify you of sale or cession of the loan and they may not have had your permission. This may be grounds for legal applica-tion to have the loan agreement declared null and void

• In many instances, the debt may be long past the date of prescription and if you have not acknowledged the debt applicable under stipulated lengths of time for prescription, it may be effectively wiped clean through special application for pre-scription

• All letters of demand issued under false pretences and false claims of representation are effectively fraudulent and not applicable any-more, if they are determined to be factually inaccurate

• They will likely not issue you a sec-tion 129 notice which is legally

required before any legal claims are issued against you because this is a legal document which requires factual attestation and divulgence of the true legal creditor.

This appears to be an industry norm however and the breadth of this activ-ity spans the entire sector.

Be Sure To AskThus, prior to acknowledging any debt owed, from what we have outlined above, the following questions can be raised with the collecting firm when their demands and claims are issued to you as the defaulting borrower:

1. Please can you indicate if you pur-chased the debt from the bank/lender or if you are their appointed legal mandate to collect the mon-ies?

2. If you are their appointed legal mandate, please can you provide me original scanned copy of the le-gal mandate and agreement includ-ing date of effect?

3. If you are running debt collection services as a contractor, could you please provide me your debt col-lectors registration number?

4. You have cited the credit bureau and credit laws in your demand which pertains to national credit act and laws. Are you aware then that under the same NCA it indicates

that lenders are required to notify the borrower of any cessions and/or sale of their credit agreement and it also stipulates that the bor-rower must provide consent?

5. Are you aware that making claims for monies owed to a creditor you claim to represent, when you are not the legal creditor is perjury and shows an intent to commit fraud in our court system and as such if the bank has sold off the debt then they have no claims to make?

6. Please can you declare formally in writing that the debt is owed to XXXXXXX, the original lender as the true legal creditor?

7. Can you please provide me with an original copy of the initial credit agreement with the principal lend-er?

8. On what date did the did debt agreement default?

9. Can a formal copy of the certificate of balance for the outstanding debt, with the principal lender’s legal and credit provider number be provid-ed?

The collecting firms can blatantly lie or avoid these matters altogether and/or may provide you with fictitious or fraudulent documents to try and maintain the facade of the bank/lender maintaining legal claim against you for monies owed. However, everything provided would be scrutinised with

a fine tooth comb and a healthy and reasonable degree of suspicion. Fur-thermore, issuing false statements and documents by these collecting firms is a risky practice which sets them up for establishing prima facie evidence against them indicating fraudulent and perjurous activities.

Stand Up For Your RightsOnly through scrutiny by the general public will these, unscrupulous enter-prises be brought to heel as, to many, it seems that regulators do not have any resources or ability to close them down. It may well be up to the general public to ask the hard questions and bring these practices to a halt.

Please note though that while the above mentioned activity is occurring in the industry without a doubt, you should be mindful that there are many instances where the collecting firm is legally acting as the properly man-dated agent, appointed by the original bank/lender and their legal position should be determined and respected if all above board. If so, consumers can happily deal with them. Settling a debt is always the best solution when pos-sible. If that is not possible then the borrower should consider their rights and all the other options available to them, to help deal with their debts.

Jack Darier

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Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

info@creditmatters.co.za

Dynamix Debt Counselling TLCAlida Christie NCRDC2324

Office 1, 34 Beefwoodstreet, Vanderbijlpark, 1911

Tel: 079 520 4369Tel: 016 100 8020

tlcdebt@mweb.co.za

Specialist Debt Management CentreBeverley Ludick, NCRDC948

PretoriaTel: 012 377-3557

Email: obligco@gmail.comEmail: dc@obligco.co.za

www.obligco.co.za Tel: 0861 123 644Email: info@debtrescue.co.za

NCRDC197Tel: 011 660 9970Fax: 086 540 5017

KRUGERSDORPe-mail: nicky@nvdmdc.co.za

www.nvdmdc.co.za

All Debt SolutionsFast tracking your financial freedomTel: 0861 255 3328 / 021-557 9981

Email: info@allds.co.zawww.alldebtsolutions.co.zahttps://www.facebook.com/

alldebtsolutions

CCDCConsumer Care Is our Priority.

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

www.ccdc.co.za

Creators In Financial Wellbeing

NCRDC677You Are Not Alone

We’ll handle your creditors so you don’t have to!

1 Dingler Street, Rynfield, Benoni0861 10 11 00

info@debtmend.co.zawww.debtmend.co.za

KWAZULU-NATAL

GAUTENG

www.jpawfin.co.za

MV Business Empowerment9 River RoadMorning HillBedfordview

(next to Eastgate mall)Tel: 083 490 3339

velaphi@infitech.co.za

Suite 7 Gladstone Court103 Smiso Nkwanyana [Goble] Road

MorningsideDurban

Tel: 031 303 1004Mobile: 076 835 2810

Email: jbechoo@jb-attorneys.co.za

KWAZULU-NATAL

Credit MattersSouth Africa’s Leading

Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

info@creditmatters.co.za

Debt Review Specialists23 Coronation Road

MithanagarTongaat

4399Tel: 071 222 9481Tel: 032 944 3446

admin@kmadebt.co.zawww.kmadebt.co.za

Helping you to get back on yourfeet and on the road to recovery

The Square250 Umhlanga Rocks Drive

UmhlangaDurban

4319 Tel: 031 566 2029Tel: 071 902 4445

info@mnmdebtrecovery.co.zawww.mnmdebtrecovery.co.za

National Debt AdvisorsFighting For Consumer Justice

Tel: 021 007 1688 www.nationaldebtadvisors.co.za

Tel: 0861 123 644Email: info@debtrescue.co.za

Telephone031 303 2448 / 084 250 2356

www.debtfinesse.co.za

Restore your financial wellness

Our Debt Management Process is Easy!

DEBT REVIEW AWARDS

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Credit MattersSouth Africa’s Leading

Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

info@creditmatters.co.za

National Debt AdvisorsFighting For Consumer Justice

Tel: 021 007 1688 www.nationaldebtadvisors.co.za

Tel: 0861 123 644Email: info@debtrescue.co.za

Credit MattersSouth Africa’s Leading

Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

info@creditmatters.co.za

Credit MattersSouth Africa’s Leading

Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

info@creditmatters.co.za

LIMPOPO

SMS Salary Management ServicesAnnerien de Jager

Registered Debt Counsellor NCRDC0075

015 307 2772info@smslimpopo.co.za

National Debt AdvisorsFighting For Consumer Justice

Tel: 021 007 1688 www.nationaldebtadvisors.co.za

Tel: 0861 123 644Email: info@debtrescue.co.za

Depopulating a generation of over indebted and populating a debt free

generation.

Office no 2, 5 A Schoeman Street, Polokwane

Tel: 0152912731Tel: 0877028518

Email: admaau66@gmail.com

www.maaudebts.co.za

MPUMALANGA

Credit MattersSouth Africa’s Leading

Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

info@creditmatters.co.za

National Debt AdvisorsFighting For Consumer Justice

Tel: 021 007 1688 www.nationaldebtadvisors.co.za

Tel: 0861 123 644Email: info@debtrescue.co.za

Credit MattersSouth Africa’s Leading

Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

info@creditmatters.co.za

NORTH WEST

National Debt AdvisorsFighting For Consumer Justice

Tel: 021 007 1688 www.nationaldebtadvisors.co.za

Tel: 0861 123 644Email: info@debtrescue.co.za

Depopulating a generation of over indebted and populating a debt free

generation.

Office No. 6, Prime Pharm Building,36 Dr Nelson Mandela Drive

Tel: 0186320053Tel: 0877026744

Email: papi@maaudebts.co.za

www.maaudebts.co.za

NORTHERN CAPE

Credit MattersSouth Africa’s Leading

Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

info@creditmatters.co.za

National Debt AdvisorsFighting For Consumer Justice

Tel: 021 007 1688 www.nationaldebtadvisors.co.za

Tel: 0861 123 644Email: info@debtrescue.co.za

Credit MattersSouth Africa’s Leading

Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

info@creditmatters.co.za

Credit MattersSouth Africa’s Leading

Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

info@creditmatters.co.za

EASTERN CAPE

National Debt AdvisorsFighting For Consumer Justice

Tel: 021 007 1688 www.nationaldebtadvisors.co.za

Tel: 0861 123 644Email: info@debtrescue.co.za

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WESTERN CAPE

CONSOLIDEBTHeidie Knorr NCRDC209

Paarl, Worcester, Wellington, Ceres, Piketberg, Clanwilliam, VredendalTel: 021 863 2754 / 082 380 4401

consolidebt@vodamail.co.za

Encouraging Freedom, Creating Wealth

Etienne Pieterse NCRDC2210 Tel. (021) 204-8001 etienne@ffsdc.co.za

www.financialfreedomsolutions.co.za

National Debt AdvisorsFighting For Consumer Justice

Tel: 021 007 1688 www.nationaldebtadvisors.co.za

Credit MattersSouth Africa’s Leading

Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

info@creditmatters.co.za

ISISEKO DEBT HELPGet Your Life back on track

TEL: 087 230 0223FAX: 086 551 1649

EMAIL: makanti@isiseko.co.zaWEB: www.isiseko.co.za

All Debt SolutionsFast tracking your financial freedomTel: 0861 255 3328 / 021-557 9981

Email: info@allds.co.zawww.alldebtsolutions.co.zahttps://www.facebook.com/

alldebtsolutions

NCRDC1142 No 2 Golden Isle Building

281 Durban Road, Oakdale,Bellville, 7535

Tel: 086 111 3749Email: help@zerodebt.co.za

www.zerodebt.co.za

Debt BudgetOne Monthly Payment For All Your Debt

Bruce Leslie BorezNCRDC1643

52 Church Street, “NBS Building”,Wynberg

Tel: 021 824 8885www.debtbudget.co.za

Credit MattersSouth Africa’s Leading

Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

info@creditmatters.co.za

CONSUMER DEBT SUPPORTAnnienne Nel NCRDC2452Kairo’s House, 22 Fairfield Southstreet, Parow, 7550

Office: 021 930 5791Cell: 082 641 2328Fax: 086 563 3264

e-mail: info@debtcentre.co.za

www.debtcentre.co.za

WESTERN CAPE

Tel: 0861 123 644Email: info@debtrescue.co.za

Your Guide to Financial Wellness and Recovery

0861 229 922info@debthero.co.zawww.legalhero.co.za

Your Guide to Financial Wellness and Recovery

0861 229 922info@debthero.co.zawww.legalhero.co.za

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

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

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UPDATED2016

lana Van Herwaarde,DC Operation Centre (PTY)

Tel: 0867227405 Email: info@dcoperations.co.zawww.dcoperations.co.za

DEBT086 126 6562

debt@one.za.com www.one.za.com

Detect ID Theft or possible ID Fraud

info@akanisolutions.co.zawww.akanisolutions.co.za

Akani SolutionsInformation Data Solutions

Credit Report App

ID Protector

Access Your Credit Bureau Report Instantly on Your Phone

DCs help your clients use it during application & to protect their ID

Subscribers notified by SMS when number is activated

SUPPORT SERVICESTel: 011 451 0041Tel: 0860 072 768

www.maxpayments.co.za

FINANCIAL PLANNING

TRAININGCOMING SOON

COMING SOON

LEGAL

Liddles & Associates“It always seems impossible until it

is done” N. Mandela(T) 021 930 5790(F) 0866070940

(E) frontdesk@liddles.co.zawww.liddles.co.za

RM Brown and Associates 16th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 021 202 1111, f: 021 425 0875 Email: roger@rmbrown.co.za

Steyn Coetzee Attorneys / Prokureurs

Adri de Bruyn11 Market Street / Markstraat 11,

Paarl, 7646Tel: 021 872 1968Fax: 021 872 2678

adri@steyncoetzee.co.za

CREDIT BUREAUSCOMING SOON

Kim ArmfieldAttorney & Family Law Mediator Address: Unit 1B, FinansHuis, 7

Voortrekker Road, BellvilleTel: 021 949 1758 / 021 945 2526

Office cell: 084 8588 284kim@legalwc.co.za

Your Debt Counselling Attorneys

Johannesburg | Cape Town

Andre Van Zyl021 494 4862

info@bassonvanzyl.com

www.bassonvanzyl.com

PAYMENT DISTRIBUTION AGENCIES

DC Partner044 873 4530

Hyphen PDA011 303 0060

NPDA0861 628 628

NPDA0861 628 628

Debt Review SoftwareTel: 016 004 0031

SYSTEM PROVIDERS

Tel: 011 451 0041Tel: 0860 072 768

www.maxpayments.co.za

CAPITEC CONTACT DETAILS

Form 17’s ccsforms17@capitecbank.co.zaProposals ccsproposals@capitecbank.co.zaCourt documents ccsdebtrevieworders@capitecbank.co.zaGeneral Queries ccsdebtreviewqueries@capitecbank.co.zaRefund Requests / Cancellation of Debit Orders

ccsrefundrequests@capitecbank.co.za

Complaints ComplaintManagement@capitecbank.co.zaInsurance Certificates coming soonSharecall Contact Number 086 066 7783 - Select Option 2

ESCALATION PROCESSCOMING SOON

Debt Review DepartmentEmail Address Turnaround Time

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

ABSA TASK SPECIFIC DEBT REVIEW ENTRY POINTS

ABSA TASK SPECIFIC DEBT REVIEW ENTRY POINTS

Form 17.1 DRCOB@absa.co.za

Debit Order Cancellations Debitordercancellations@absa.co.za

Proposals DRProposals@absa.co.za

Exits from Debt Review 17.4@absa.co.za

All Court Documents Courtapp@absa.co.za

DC Switches DCTransfere@absa.co.za

Termination Queries DRTerminations@absa.co.za

Queries debtreviewqueries@absa.co.za

Escalated Queries debtreviewmanager@absa.co.za

Call Centre 0861 222 272

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

www.nedbank.co.za

DC Query Process

AFRICAN BANK CONTACT DETAILS 011 256 9323

DebtCounselling@africanbank.co.za

ESCALATION PROCESS

COMING SOON

Telephone: 031 251 4151

GENERAL CONTACT DETAILS (FIRST POINT OF CALL)*

17.1‘s, 17 .2’s, 17.3’s, Rejections and 17 .W’s, Change or Transfer of Debt Counsellor

nca@consumerfriend.co.za

Proposals / Revised Proposals / Consents / Related Queries

proposal@consumerfriend.co.za

Notice of Service / Court Applications court@consumerfriend.co.zaUpdated Balances / Settlements / General Queries queries@consumerfriend.co.zaSection 86(10) Letters and All Related Queries terminations@consumerfriend.co.za

ESCALATION CONTACT DETAILS*

Complaints / Service Delivery / Management ryan@consumerfriend.co.zajustin@consumerfriend.co.za

17.1‘s, 17 .2’s, 17.3’s, Rejections and 17 .W’s, Change or Transfer of Debt Counsellor

charlene@consumerfriend.co.za

Proposals / Revised Proposals / Consents / Related Queries

charlene@consumerfriend.co.za

Notice of Service / Court Applications roderick@consumerfriend.co.zaUpdated Balances / Settlements / General Queries diane@consumerfriend.co.za

*Please do not CC multiple email addresses.

Fax: 031 251 4252