Debtfree DIGI Magazine - May 2016

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Credit ProteCtion – debt review SuRe SuRe Applied to go under debt review? Restructuring your monthly expenses? why not insure all your accounts on the one Credit Protection? Credit ProteCtion Credit ProteCtion – debt review – debt review Applied we will to go contribute under Applied debt towards to review? go under your debt accounts review? in the event of the following: Restructuring your Restructuring monthly expenses? your monthly expenses? why • not death insure – why all we your settle not accounts insure the account all on your the accounts one Credit on the Protection? one Credit Protection? • temporary disability – we pay the Debt Review payment we will contribute for 6 months we towards will contribute your accounts towards in your the event accounts of the in following: the event of the following: • Permanent disability – we settle the account • death • Critical – we settle • illness the death account –– we settle the account • temporary • retrenchment disability • temporary – we we pay pay disability the the Debt Debt – Review we pay payment the Debt Review payment for 6 months for 6 months Review payment for up to 9 months • Permanent disability • Permanent – we settle disability the account – we settle the account • Critical illness • – we Critical settle illness the account – we settle the account • retrenchment At a rate of R • – 2.95 we retrenchment pay per the R1000, Debt – our we pay the Debt Review rates are payment among for Review up the to best 9 payment months and our for up to 9 months benefit structure is the best in the At a rate market. of R 2.95 At per a R1000, rate of R our 2.95 per R1000, our rates are among the rates best are and among our the best and our benefit structure is benefit the best structure in the is the best in the market. market. ContACt one oR youR debt Counsellor! ContACt 0861 one 266 562 oR ContACt youR one oR youR debt www.one.za.com Counsellor! debt Counsellor! 0861 266 562 0861 266 562 www.one.za.com sam Haasbroek: www.one.za.com 082 550 7294 sam Haasbroek: sam Haasbroek: sam.h@one.za.com 082 550 7294 082 550 7294 sam.h@one.za.com sam.h@one.za.com marijke wessels: marijke 082 729 wessels: 3833 marijke wessels: 082 729 marijke.w@one.za.com 3833 082 729 3833 marijke.w@one.za.com marijke.w@one.za.com terms & Conditions aPPly terms & Conditions terms aPPly & Conditions aPPly ONE Insurance ONE Insurance Underwriting Underwriting Managers ONE Insurance (PTY) Managers LTD Underwriting Reg (PTY) No. 1996/008987/07 LTD Managers Reg No. (PTY) 1996/008987/07 LTD Reg No. 1996/008987/07 Underwritten by: Authorised Financial Services Provider Authorised FSP8783 Financial VAT No. Services 4370160501 Provider FSP8783 VAT No. 4370160501 Authorised Financial Services Provider FSP8783 VAT No. 4370160501 Underwritten Underwritten by: by: A Member of A Member of A member of the A member of Group the Group A Member of A member of the Group
NEWS CONTINUED to the courts, since neither the DTI or NCR were prepared to change the new rates or hold off on their implementation. The matter was heard in <strong>May</strong> and the ruling given (also after just one day – which is speedy). Both MFSA (with their 3 expert witnesses) and the DTI made their case and the courts found in favour of the DTI and allowing the new rate changes to go ahead without any delay. The Court, in it’s ruling, stated that they were not convinced the matter was actually that urgent or exceptional. They also mentioned that the DTI had engaged in consultation with the industry (and public) in regard to the proposed changes. A strong point which came to the fore was that after consultation the DTI had in fact made some changes to their original proposal. Originally the DTI wanted to reduce the maximum interest rate for unsecured credit by 7.9%. After consultation however they reduced that cut to 5. 65%. Also mentioned was the requirement for all people and businesses offering credit to be registered with the NCR (which it is hoped will allow the NCR to offer further protection to consumers). With the court ruling in favour of the rates going ahead, MFSA members (and all creditors) now have to comply and consumers will only be charged according to the new rate structure. SUMMIT V CAPITEC BANK Summit Financial Partners are taking there former client Capitec Bank to court over reckless lending allegations involving the bank’s former multiloan credit products. In court papers filed at the Stellenbosch Magistrates Court and the Cape Town High Court Summit have effectively claimed that Capitec Bank were disguising its multiloan credit products, which were presented as a series of short term payday loans, but they feel were reckless credit granting. These loans given over a short term attract a (normal) initiation fee. The initiation fee is allowed for under the National Credit Act and in fact, all banks (and other credit providers) charge these fees. Such an initiation fee is there, in part, to help creditors cover the costs of doing an affordability assessment to check the consumer can actually afford to repay the loan. Summit CEO Clark Gardner claims that the proper checks are only done on the first application and that up to 11 more advances can be granted by simply answering 3 simple questions via an ATM with no human oversight. They feel this is not up to standard and may result in reckless credit granting. Reckless Credit is credit granted (1) without doing proper checks, (2) not abiding by a negative outcome to such affordability checks, (3) not providing the consumer with enough documentation explaining the T&Cs and costs or (4) giving a person credit they can’t actually afford. Summit are also of the opinion that many consumers are essentially getting trapped in a cycle of taking more of these Capitec loans to pay Capitec loans, though Capitec Bank point to the uptake in this product as indicative of where consumers in general stand economically and financially recently and not as being specific to their product. They feel confident in regard to their product. Summit say they have been aware of this matter for some time and have asked the Regulator (NCR) to get involved but have been forced to take the legal route as they have not had any joy from the Regulator. The NCR are indeed aware of the claims and say they are speaking to the Reserve Bank as the matter involves
Page 1 and 2: South Africa’s debt counselling m
Page 3 and 4: henpda.co.za Don’t expect to hear
Page 5 and 6: CONTENTS NEWS YOUR INSURANCE MIGHT
Page 7 and 8: ank on your phone • Save money an
Page 9 and 10: INDUSTRY CONSUMER NEWS FLASH For da
Page 11: Switch to easy • Individual, dedi
Page 15: South Africa’s leading Debt Couns
Page 18 and 19: Shockingly what many consumers don
Page 21 and 22: NEW LAWS TO PROTECT CONSUMERS There
Page 23 and 24: JURISDICTION The other issue of cou
Page 25 and 26: Though the proposal allowed for cre
Page 27 and 28: ACCOUNTING | TAX | AUDIT | CONSULTI
Page 29 and 30: With the help of SERI (Social-Econo
Page 31 and 32: UPDATE The Annual Debt Review Award
Page 33 and 34: DEBT COUNSELLING COMMUNITY SUPPORT
Page 35 and 36: According to the recent amendments
Page 38 and 39: CAPE LAW SOCIETY LEAD CHARGE AGAINS
Page 40 and 41: with little court work or few appea
Page 42 and 43: DEBT COUNSELLORS ASSOCIATIONS ANNOU
Page 44 and 45: CLICK THE C SERVICE D DEBT COUNSELL
Page 46 and 47: DEBT COUNSELLORS GAUTENG KWAZULU- N
Page 48 and 49: National Debt Advisors Fighting For
Page 58 and 59: WEBSITE | www.debt-therapy.co.za de
Page 60 and 61: WESTERN CAPE Tel: 0861 123 644 Emai
Page 62 and 63:
SUPPORT SERVICES Akani Solutions In
Page 64 and 65:
LEGAL Liddles & Associates “It al
Page 66 and 67:
PAYMENT DISTRIBUTION AGENCIES DC Pa
Page 68 and 69:
CAPITEC CONTACT DETAILS Form 17’s
Page 70:
ABSA TASK SPECIFIC DEBT ABSA TASK S
Page 73:
AFRICAN BANK CONTACT DETAILS 011 25
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Debtfree DIGI Magazine - May 2016

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