Debtfree DIGI September 2016
SA's Free Debt Counselling and Debt Review Industry Magazine. Are Garnishee orders dead? What did the Constitutional Court say? How can you deal with Debt Stress? This and more in this months issue
SA's Free Debt Counselling and Debt Review Industry Magazine. Are Garnishee orders dead? What did the Constitutional Court say? How can you deal with Debt Stress? This and more in this months issue
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SEPTEMBER<br />
NEWSLETTER<br />
NCR Guidelines and the CIF Boycott<br />
Our decision in regard to the invalidity of the CIF and NCR issued Guidelines stands. We are taking<br />
further steps and consultation in regard to the NCR’s response to our concerns as expressed in<br />
our open letter.<br />
BEST WISHES<br />
Our long time member and finance officer Hennie Vermaas has been dealing with some health<br />
issues and we are thinking of him and wish him the best as he deals with this challenge.<br />
VALUE ADDED PRODUCTS AND DEBT REVIEW<br />
Some members have noted a concern about credit providers cancelling, making changes to or<br />
including credit life insurance into debt restructuring proposals or counter proposals. By law a<br />
bank (or other registered Credit Provider) is required to instruct the duly registered agent for the<br />
insurance (where it is applicable) to contact a consumer for continuation or cancellation of credit<br />
life protection.<br />
Per the National Credit Act and subsequent Amendments, insurance premiums cannot be included<br />
under debt review. NCA section 8(2)(a) clearly states that insurance is NOT a credit agreement.<br />
In terms of NCA Regulation 24, insurance is part of consumers ‘essential living expenses’ and in<br />
terms of NCA section 86(7)(b) and (c) only CREDIT AGREEMENTS may be restructured.<br />
All registrants of the National Credit Regulator are required to uphold the Act. On this matter the<br />
wording of the Act is very clear.<br />
Any contradictory guidelines issued by anyone regarding insurance is only an opinion and due<br />
to the wording of the NCA is non-binding. If the guideline contradicts the NCA it is invalid. As<br />
such, many AllProDC members have decided that they will not include insurance into their draft<br />
debt review rearrangement orders.<br />
www.allprodc.org<br />
FACEBOOK: www.facebook.com/AllProDC / TWITTER: www.twitter.com/AllProDC
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