Debtfree DIGI Magazine - May 2016

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Though the credit industry and regulators for a long time denied any type of unsecured credit ‘bubble’ there has been a big move in these new calculations to reduce the profitability of this section of the market. This may follow after seeing the crisis experienced by such organisations as the former African Bank (not to be confused with the current African Bank) where consumers defaulted in mass on short term credit. Combined with stricter affordability assessment requirements the unsecured credit market is undergoing large changes and is no longer the cash cow it was once seen as. Another significant change is also with regard to short term loans (such as pay day loans) which see a reduction in maximum rates for follow up loans with in a short time period. The first loan may be at 5% but follow up loans (which are very common) will be at 3%/month. It is hoped this will protect consumers from becoming trapped in a cycle of loans to pay loans. R10s WORTH OF TROUBLE BREWING The new rates are in effect and Debt Counsellors, Credit Providers and consumers need to take these into account. One area of concern which has come up in, in regard to end balance differences which may arise from accounts already loaded onto debt restructuring software systems through the PDAs (at R50/month) vs credit provider systems that will now be using R60/ month going forward. Since Debt Counsellors are probably not able to ask their clients to find an additional R10 per month, per account to add to their debt repayments, this means that the PDA statement and calculation systems will slowly be opening a gap by R10 plus interest every month on every account when compared to the creditors systems... which in the long term will lead to a large end balance difference problems.
ACCOUNTING | TAX | AUDIT | CONSULTING telephone 079 888 7200 email info@bkfaccountants.co.za www.bkfaccountants.co.za
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 and 12: Switch to easy • Individual, dedi
Page 13 and 14: NEWS CONTINUED to the courts, since
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: Though the proposal allowed for cre
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

Debtfree DIGI Magazine - May 2016

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