the debt collectors amendment bill 2016 charges and interest peter rafferty chief executive officer...
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The Debt Collectors Amendment Bill 2016
Charges and interest
Peter RaffertyChief Executive Officer
FutureSoft
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
“What one does is what counts.
Not what one had the intention of doing.”
― Pablo Picasso
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
Examples of poorly drafted contracts
ServiettesCigarette packets
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
Examples of poorly drafted legislation
National Credit Act
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
Examples of poorly executedideas
Credit Amnesty(Chapter I and II)
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
Examples of intentionalover-regulation
EmolumentAttachment Orders
AuthenticatedDebit Orders
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
“The intention behind the Debt Collectors Amendment Bill was OK …
but the execution … nah … not so good”
― Pablo Picasso
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
Improper conduct by debt collectors
15(1) A debt collector may be found guilty of improper conduct if he ...
(g) charges collection costs, and initiation fee, service fees, default administration charges or other charges which exceed the unpaid balance of the principle debt at the time of default
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
Who knows how the common lawIn Duplum Rule works?
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
Common Law In Duplum Rule
This common law rule provides that interest on a debt will cease to run where the total amount of arrear
interest has accrued to an amount equal to the outstanding principal debt
Can accrue againOnly interest
Common Law In Duplum Rule
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
Section 103(5) of the National Credit Act
Despite any provision of the common law or a credit agreement to the contrary, the amounts contemplated in section 101(1)(b) to (g) that accrue during the time that a consumer is in default under the credit agreement may
not, in aggregate, exceed the unpaid balance of the principal debt under that credit agreement as at the time
that the default occurs
National Credit Act
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
Section 101(1)(b) to (g)
initiation fee, service fee, interest, cost of any credit insurance, default administration charges, collection costs
Can never accrue againNot only interest
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
15(1) A debt collector may be found guilty of improper conduct if he ...
(g) charges collection costs, and initiation fee, service fees, default administration charges or other charges
which exceed the unpaid balance of the principle debt at the time of default
Where is the reference to ‘interest’?
Debt Collectors Amendment Bill
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
Not all debt is subject to the National Credit Act
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
But all debt will be subject to the Debt Collectors Amendment Bill
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
The Debt Collectors Amendment Bill (once amended) will prohibit
the application of the Common Law In Duplum Rule
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
Definition for debt and collectionClarify fee structures
Remove ambiguity
My other personal issues
The Debt Collectors Amendment Bill 2016
Peter Rafferty, Chief Executive Officer, FutureSoft
Thank you