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Debtfree Magazine July 2017

SA's Free Debt Counselling and Debt Review Industry Magazine. The July 2017 issue. We discuss if Debt Review is expensive or not.

SA's Free Debt Counselling and Debt Review Industry Magazine. The July 2017 issue. We discuss if Debt Review is expensive or not.

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South Africa’s debt counselling magazine

IS DEBT REVIEW

EXPENSIVE?

July 2017

www.debtfreedigi.co.za


What you can expect from Hyphen PDA:

• Increased Debt Counsellor Profitability

• Flawless Systems

• Meaningful Reporting

• Contented Consumers!

www.hyphenpda.co.za

Chris van der Straaten,

Head: PDA

082 557 0437

Malcom Povey,

Head: Operations PDA

082 445 5604


Don’t expect to hear an endless amount

of “spin” around why things failed!.


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.

FROM

THE

E

D

IT

O

RSDESK

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.


Sign Up Now To Use DReX

http://www.consumerfriend.co.za/drex-registration/


IS DEBT

REVIEW

EXPENSIVE?

NEWS

C

TWIN PEAKS

GOOD NEWS

BAD NEWS

O

NTENTS

DON’T MISS

YOUR FEE

PAYMENTS

SERVICE

DIRECTORY

DISCLAIMER

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.


South Africa’s

leading Debt Counsellors

Click through to

www.creditmatters.co.za

or call our national call centre on

086 111 6197


Is Debt Review

Expensive?

We all know that you get what you pay for. Buy a cheap ‘n nasty noname

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?


Is Cheap Always Better?

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.


Debt Counselling is a

Professional Service

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.


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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

No

at present,

Set

there

Fees

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. Plumbers, This normal doctors, fee accountants structure is endorsed and lawyers by the all NCR. charge Debt Counsellors professional are

trained fees. professionals In some industries who pass these a set fees exam are regulated and are vetted by law by or the by National association Credit

Regulator standards. to practice In South debt Africa review. at present, They are entitled there are to charge no legal a professional limits in the fee.

Without National it, they Credit would Act or not regulations be able to on run what their a business Debt Counsellor and assist can consumers. 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.


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What Are The Fees?

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.


The First

Two Months


The Restructuring Fee

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 Legal 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.


After Care Fees

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).


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

The National Credit Regulator has an opinion on what Debt Counsellors

should charge consumers for debt counselling. They have issued it

as a circular to the industry, and they like it when Debt Counsellors

listen to their opinion. They call it the ‘NCR Fee Guideline’. The original

guideline matched what the Debt Counsellors Association of South

Africa suggested for its members. The NCR have only changed their

non-binding opinion once in 10 years, when they suggested that Debt

Counsellors could charge a bit more than before.

The second NCR Fee guideline was issued with what seems to be a

mistake in regard to the figure chargeable for a Joint Application (it

talks about increasing a payment for one person - at the R6000 cap,

up to R6000 – the exact same figure - for two people). It was probably

originally meant to be R8000 but it says R6000 and as a result, DCs

tend to stick to that. It may just be a grammatical mistake and not a

mathematical one so DCs err on the side of caution.

The NCR’s opinion on fees is not currently binding since they are not

part of the law, but the NCR are working with the DTI to have a new fee

structure published as a regulation in the Government Gazette in the

future to help regulate the industry. Regardless of what the maximum

rates end up being, it is important to remember that individual Debt

Counsellors can always charge less, in an effort to be competitive.


Pay The Fees and Save A

Bundle 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.


Debt Review

Is Not Expensive

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.


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OR REPUDIATE A

LEGITIMATE CLAIM

Specialist insurance for people in debt

review. Ask your debt counsellor.

CALL US NOW 0861 635 467

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DEBT REVIEW

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and don’t tell your Debt

Counsellor and PDA you

won’t get your monthly

statements.


Twin Peaks Coming

and the NCR is Still

Nowhere To Be Seen

At the end of June 2017, an important piece of legislation

leading to Twin Peaks was passed by Parliament and sent to

President Jacob Zuma to sign into law. It is called the Financial

Sector Regulation Act and it outlines the architecture for how

the new “twin peaks” regulatory structure will govern the

financial services industry.


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

With fewer consumers gaining employment and entering

the credit market, tighter restrictions on lending criteria, and

ever increasing consumers defaulting on payments, the retail

industry has been quietly raking in a fortune in customer club

fees to help offset their reduced income.

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


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 Matters

In 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 FLASH

For daily debt counselling news in 3 minutes or less visit www.debtfreedigi.co.za

SURPRISING INTEREST

RATE DROP

This 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

repayments. It also however means less

earnings for those with investments

linked to the interest rate.

NCT DISMISSES

DE-REGISTRATION

APPLICATION BY NCR

Since 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

DCASA ANNUAL

CONFERENCE IN AUGUST

Each 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 TROUBLE

Following 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 REGISTRANTS

Debt 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.

For daily debt

counselling news in 3

minutes or less visit

www.debtfreedigi.co.za


All professionals have professional indemnity if the unforeseen

happens. Do you as a professional Debt Counselor have

professional indemnity as stipulated by the ethical code?

contact us today for more information

086 111 2882

TELEPHONE 0861 112 882 FACSIMILE 086 605 9751 MOBILE 082 449 6856 EMAIL andre@in2insurance.co.za

www.in2insurance.co.za

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PROFESSIONAL DEBT

COUNSELLING ATTORNEYS

TEL: 021 872 1968

11 MARKET STREET, PAARL

www.steyncoetzee.co.za


DEBT REVIEW

SCHOOL

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number and don’t tell

your Debt Counsellor and

PDA you won’t get vital

SMS notifications.


Raising The Bar For

Credit Life Insurance

When consumers take on credit, credit providers insist they

take a type of insurance (either their own or provided by the

consumer) to cover the debt, in case of the consumer dying or

losing their job. This is commonly called ‘credit life’ insurance.

Most consumers sign for it and don’t really know what it is or

how it works.

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 August

The 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.


Type of Credit Agreement

Mortgage agreement

Affordable housing mortgage agreement

Credit Facilities;

Unsecured credit transactions;

Short term credit transactions;

Developmental credit agreements;

and

Other credit agreements

If the credit life insurance policy

provides additional benefits for loss

of income as a result of temporary

disability

Maximum Cost

R2 per R1000

R2 per R1000 (consumer under 55

years)

R2.50 per R1000 (consumer over 55

years)

R4.50 per R1000

The total cost of credit life insurance

may be increased by R1 per R1000 for

both benefits

Chose Your Own

For 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


SURE

Credit ProteCtion – debt review

Applied to go under debt review?

Restructuring your monthly expenses?

why not insure all your accounts on the one Credit Protection?

benefits offered

• death – we settle the account

• temporary disability – we pay your

installment for 12 months

• Permanent disability – we settle

the account

• Critical illness – we pay your

installment for 3 months

• retrenchment – we pay your

installment for 12 months

At a rate of R2.95 per R1000

unsecured/short-term credit

and R2.00 per R1000 on

Mortgages, you can now

insure your debt for less

without compromising on the

best benefits available.

For further information please

speak to your Broker alternatively

contact your regional ONE office.

0861 266 562

admin.debt@one.za.com

TERMS & cONDITIONS APPLY

ONE Insurance Underwriting Managers (PTY) LTD Reg No. 1996/008987/07

Authorised Financial Services Provider FSP8783 VAT No. 4370160501

Underwritten by:

A Member of A member of the Group


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.

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A Few Hundred Rand in

Missed Fees Cost a Debt

Counsellor Her Business

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.


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.

It does however raise some interesting

scenarios and questions:

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, consider yourself warned!


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.

The NCR have till 1st August 2017 to

issue certificates to all Debt Counsellors

who timeously renewed


IN A NUTSHELL

DO YOU WANT THE GOOD

OR THE BAD NEWS?

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


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 overindebtedness.

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.

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Die Republiek van

SKYT AFRICA

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.

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.


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.

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 be

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


DEBT COUNSELLORS ASSOCIATIONS

ANNOUNCEMENT BOARD

Regional Meetings

Kwa-Zulu Natal: 26/10/17

Western Cape: 07/11/17

Gauteng: 24/10/17

Freestate: 20/10/17

Eastern Cape: 27/10/17

The Date of the DCASA Annual Conference is

Wednesday the 16th August 2017

Experts explain “co-operatives”

as a legal structure:

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

Book Now. Hurry, Seats Almost Sold Out

www.dcasa.co.za

www.newera.org.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.

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.bdcf.co.za

www.allprodc.org


JULY

NEWSLETTER

Tenacity Meeting

A 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 August

Members 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 Renewal

Members 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

www.allprodc.org

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


Enterprises UP and ABSA

open new learning

avenues for the banking

sector and credit providers

Enterprises University of Pretoria (Enterprises UP) and

ABSA have launched a training intervention with a

group of delegates in the banking and credit provider

industries.

This course is known as The

Advanced Programme in Debt

Review and it was piloted in 2016.

Over 23 Absa and Standard Bank

staff have already successfully

graduated and received their

certification.

Open to employees in the banks

and other credit providers who

have specific responsibilities

relating to debt review, the

programme aims to provide them

with a comprehensive overview

and legislative framework around

debt review in South Africa, as

well as the measures to prevent

over-indebtedness.

The 2017 programme commenced

in April 2017, with two groups of

25 new delegates attending the

course. Presented in a blended

mode that takes advantages

of technology-enabled and

-assisted learning, the programme

minimises the time that delegates

need to be out of office.

Online components of the

programme optimise on selfdirected

learning away from the


traditional classroom setting,

where delegates can access

additional reading material,

multimedia, and other online

resources that also form an integral

part of their preparation prior to

attending contact sessions.

Interactive workshops form part

of the face-to-face component of

the programme and are facilitated

through group discussions and/

or collaborations to allow for

interaction and relevance- or realworld-based

learning. This again

is moderated by the assistance

and support of online forums for

delegates to post and respond to

questions or assignments posed

by the course presenters and their

peers.

The programme is divided into

six learning blocks and focus on

the application and interpretation

of the act as well as classification

of credit agreements, eg credit

facility, credit transaction, and

credit guarantee. The different

categories of credit agreements:

small, intermediate and large as

well as institutional arrangements

under the Act are also explained.

All of the above is illustrated with

practical examples and the latest

applicable case law.

The realisation of the need for

such training in the industry

has also instigated the rollout

of further intakes on the

programme and the scheduling

of additional courses that are set

to start at the end of August 2017.

Several courses will also possibly

be scheduled concurrently to

optimise on focus areas that need

to be addressed further.

For more information on

sharpening your debt review

skills via one of our wide range of

courses or for advisory services

on starting your business, drop us

a mail or contact us on:

+27 (0)12 434 2500


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to join our energetic team.

This is a great opportunity to become part of a fast-paced, high growth

and professional debt counselling environment.

We offer a consistent hot lead flow as well as an aggressive remuneration model.

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.za

www.meerkat.co.za/careers/

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DEBT COUNSELLING

COMMUNITY SUPPORT

ADOPT A FAMILY

DEBT COUNSELLING

COMMUNITY SUPPORT

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 YOU

to 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 answer

you are undoubtedly going have

to face a barrage of aggressive interrogation

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 collector

or legal firm harassing people

for money, then you are likely in a position

where either yourself or someone

you know has experienced this

difficult and stressful situation.

The current sociopolitical situation,

global economic factors, regressive

local economy, poorly regulated

banking practices and general corruption

in this country has a created an

environment where the out of control

debt is starting to effect more and

more people on a daily basis.

Note* before I continue I must reiterate

that I do not purport to be a

legal practitioner and anything stipulated

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 simply

abysmal at reigning in the banks

and their fraudulent behaviour, have

attempted to provide persons suffering

from crippling debt a mechanism

to offer the borrower some reprieve

from unscrupulous attorneys and debt

collectors. This is by way of appointment

of a debt counsellor to the borrower.

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 detail.

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 defaulted

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 activity

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 differentiate

this practice from securitisation.

Securitisation

In a securitisation scheme, the bank

bundles loans together and sells this

package to the Special Purpose vehicle

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 Debt

The 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 typically

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 borrower

(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 unfortunately

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 principles

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 implementing

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 package

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 otherwise

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 committing

fraud on mass proportions:

1. they are making demands claiming

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 fraudulently

2. these firms are untruthful in their

correspondence and dealings with

defaulting borrowers

3. these firms are actively re-packaging

and selling debt through multiple

transactions to other players

in the market and are not notifying

borrowers on the chain of ownership

on said debts which is a strict

requirement of NCA of 2000

4. In many instances, there may not

even be approval from the borrower

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 operating

and are aware of contravention of

multiple credit, financial and banking

regulations and as such simply avoid

divulgence of any of the matters highlighted

above. They are also aware of

the cost of taking matters to court so,

they use the modus operandi of intimidating

and harassing borrowers for

money until they recover on the debt

they bought for so cheap. It is a lucrative

business after all.

They train their staff and debt collectors

to utilise these tactics to effectively

scare the defaulting bower

into paying them. I also surmise their

staff are on incentive or quota initiatives

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 escape

from the debt based on these

critical analysis points:

• You entered into a credit agreement

with the principal lender and

if they choose to sell your loan

without adhering to credit regulations,

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 application

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 prescription

• All letters of demand issued under

false pretences and false claims

of representation are effectively

fraudulent and not applicable anymore,

if they are determined to be

factually inaccurate

• They will likely not issue you a section

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 activity

spans the entire sector.

Be Sure To Ask

Thus, 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 purchased

the debt from the bank/

lender or if you are their appointed

legal mandate to collect the monies?

2. If you are their appointed legal

mandate, please can you provide

me original scanned copy of the legal

mandate and agreement including

date of effect?

3. If you are running debt collection

services as a contractor, could you

please provide me your debt collectors

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 borrower

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 lender?

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 provided?

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. Furthermore,

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 Rights

Only through scrutiny by the general

public will these, unscrupulous enterprises

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 mandated

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 possible.

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


CLICK THE C

SERVICE D

DEBT COUNSELLORS

SUPPORT

SERVICES

TRAINING

FINANCIAL

FINANCIAL

PLANNING


IRECTORY

ATEGORY

DO YOU WANT TO LIST

YOUR COMPANY?

directory@debtfreedigi.co.za

LEGAL

CREDIT BUREAUS

PAYMENT

DISTRIBUTION

AGENCIES

CREDIT PROVIDER CONTACT

DETAILS & ESCALATION PROCESS


DEBT COUNSELLORS

GAUTENG

KWAZULU-

NATAL

FREE STATE


LIMPOPO NORTH WEST EASTERN CAPE

MPUMALANGA NORTHERN CAPE WESTERN CAPE


PENNY WISE

Cathy Foster

Debt Counsellor – NCRDC1977

Penny Wise Debt Counselling

Tel: (011) 679 1540

Fax: 086 719 3378

Mobile: 083 298 4467

Email: cathy@pennywise.co.za

www.pennywise.co.za

Credit Matters

South Africa’s Leading

Debt Counsellors

14th Floor, The Pinnacle

Cnr Strand & Burg St

Cape Town

Tel: 086 111 6197

Fax: 021 425 6292

info@creditmatters.co.za

GAUTENG

Armani Debt Counselling

Take the First Step

to Financial Freedom

Tania Dekker

Tel: 011 849 3654 / 7659

www.armanigroup.co.za

Dynamix Debt Counselling TLC

Alida Christie NCRDC2324

Office 1, 34 Beefwoodstreet,

Vanderbijlpark, 1911

Tel: 079 520 4369

Tel: 016 100 8020

tlcdebt@mweb.co.za


Specialist Debt Management Centre

Beverley Ludick, NCRDC948

Pretoria

Tel: 012 377-3557

Email: obligco@gmail.com

Email: dc@obligco.co.za

www.obligco.co.za Tel: 0861 123 644

Email: info@debtrescue.co.za

Creators In Financial Wellbeing

NCRDC677

You Are Not Alone

We’ll handle your creditors so you

don’t have to!

1 Dingler Street, Rynfield, Benoni

0861 10 11 00

info@debtmend.co.za

www.debtmend.co.za

NCRDC197

Tel: 011 660 9970

Fax: 086 540 5017

KRUGERSDORP

e-mail: nicky@nvdmdc.co.za

www.nvdmdc.co.za

All Debt Solutions

Fast tracking your financial freedom

Tel: 0861 255 3328 / 021-557 9981

Email: info@allds.co.za

www.alldebtsolutions.co.za

https://www.facebook.com/

alldebtsolutions

CCDC

Consumer Care Is our Priority.

Tel: 018 462 4263 / 073 624 6949

Email: info@ccdc.co.za

www.ccdc.co.za


KWAZULU-

NATAL

www.jpawfin.co.za

GAUTENG

MV Business Empowerment

9 River Road

Morning Hill

Bedfordview

(next to Eastgate mall)

Tel: 083 490 3339

velaphi@infitech.co.za

Suite 7 Gladstone Court

103 Smiso Nkwanyana [Goble] Road

Morningside

Durban

Tel: 031 303 1004

Mobile: 076 835 2810

Email: jbechoo@jb-attorneys.co.za


Helping you to get back on your

feet and on the road to recovery

The Square

250 Umhlanga Rocks Drive

Umhlanga

Durban

4319

Tel: 031 566 2029

Tel: 071 902 4445

info@mnmdebtrecovery.co.za

www.mnmdebtrecovery.co.za

Tel: 0861 123 644

Email: info@debtrescue.co.za

National Debt Advisors

Fighting For Consumer Justice

Tel: 021 007 1688

www.nationaldebtadvisors.co.za

Debt Review Specialists

23 Coronation Road

Mithanagar

Tongaat

4399

Tel: 071 222 9481

Tel: 032 944 3446

admin@kmadebt.co.za

www.kmadebt.co.za

Restore your

financial wellness

Our Debt Management

Process is Easy!

DEBT

REVIEW

AWARDS

Telephone

031 303 2448 / 084 250 2356

www.debtfinesse.co.za

Credit Matters

South Africa’s Leading

Debt Counsellors

14th Floor, The Pinnacle

Cnr Strand & Burg St

Cape Town

Tel: 086 111 6197

Fax: 021 425 6292

info@creditmatters.co.za


National Debt Advisors

Fighting For Consumer Justice

Tel: 021 007 1688

www.nationaldebtadvisors.co.za

Credit Matters

South Africa’s Leading

Debt Counsellors

14th Floor, The Pinnacle

Cnr Strand & Burg St

Cape Town

Tel: 086 111 6197

Fax: 021 425 6292

info@creditmatters.co.za

FREE STATE

Tel: 0861 123 644

Email: info@debtrescue.co.za


LIMPOPO

National Debt Advisors

Fighting For Consumer Justice

Tel: 021 007 1688

www.nationaldebtadvisors.co.za

Credit Matters

South Africa’s Leading

Debt Counsellors

14th Floor, The Pinnacle

Cnr Strand & Burg St

Cape Town

Tel: 086 111 6197

Fax: 021 425 6292

info@creditmatters.co.za

Depopulating a generation of over

indebted and populating a debt free

generation.

Office no 2, 5 A Schoeman Street,

Polokwane

Tel: 0152912731

Tel: 0877028518

Email: admaau66@gmail.com

www.maaudebts.co.za

SMS Salary Management Services

Annerien de Jager

Registered Debt Counsellor

NCRDC0075

015 307 2772

info@smslimpopo.co.za

Tel: 0861 123 644

Email: info@debtrescue.co.za


National Debt Advisors

Fighting For Consumer Justice

Tel: 021 007 1688

www.nationaldebtadvisors.co.za

Tel: 0861 123 644

Email: info@debtrescue.co.za

MPUMALANGA

Credit Matters

South Africa’s Leading

Debt Counsellors

14th Floor, The Pinnacle

Cnr Strand & Burg St

Cape Town

Tel: 086 111 6197

Fax: 021 425 6292

info@creditmatters.co.za


National Debt Advisors

Fighting For Consumer Justice

Tel: 021 007 1688

www.nationaldebtadvisors.co.za

Credit Matters

South Africa’s Leading

Debt Counsellors

14th Floor, The Pinnacle

Cnr Strand & Burg St

Cape Town

Tel: 086 111 6197

Fax: 021 425 6292

info@creditmatters.co.za

NORTH WEST

Depopulating a generation of over

indebted and populating a debt free

generation.

Tel: 0861 123 644

Email: info@debtrescue.co.za

Office No. 6, Prime Pharm Building,

36 Dr Nelson Mandela Drive

Tel: 0186320053

Tel: 0877026744

Email: papi@maaudebts.co.za

www.maaudebts.co.za


National Debt Advisors

Fighting For Consumer Justice

Tel: 021 007 1688

www.nationaldebtadvisors.co.za

Credit Matters

South Africa’s Leading

Debt Counsellors

14th Floor, The Pinnacle

Cnr Strand & Burg St

Cape Town

Tel: 086 111 6197

Fax: 021 425 6292

info@creditmatters.co.za

NORTHERN CAPE

Tel: 0861 123 644

Email: info@debtrescue.co.za


National Debt Advisors

Fighting For Consumer Justice

Tel: 021 007 1688

www.nationaldebtadvisors.co.za

Credit Matters

South Africa’s Leading

Debt Counsellors

14th Floor, The Pinnacle

Cnr Strand & Burg St

Cape Town

Tel: 086 111 6197

Fax: 021 425 6292

info@creditmatters.co.za

EASTERN CAPE

Tel: 0861 123 644

Email: info@debtrescue.co.za


WEBSITE | www.debt-therapy.co.za

debt therapy

integrity guaranteed

debt therapy is registered with NCR | NCRDC49

National Debt Advisors

Fighting For Consumer Justice

Tel: 021 007 1688

www.nationaldebtadvisors.co.za

Drastically reduce your monthly

debt repayments

Let US help 0861111863

Regain control of your finances

www.debt-therapy.co.za

WESTERN CAPE

CONSOLIDEBT

Heidie Knorr NCRDC209

Paarl, Worcester, Wellington, Ceres,

Piketberg, Clanwilliam, Vredendal

Tel: 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


ISISEKO DEBT HELP

Get Your Life back on track

TEL: 087 230 0223

FAX: 086 551 1649

EMAIL: makanti@isiseko.co.za

WEB: www.isiseko.co.za

NCRDC1142

No 2 Golden Isle Building

281 Durban Road, Oakdale,

Bellville, 7535

Tel: 086 111 3749

Email: help@zerodebt.co.za

www.zerodebt.co.za

Credit Matters

South Africa’s Leading

Debt Counsellors

14th Floor, The Pinnacle

Cnr Strand & Burg St

Cape Town

Tel: 086 111 6197

Fax: 021 425 6292

info@creditmatters.co.za

All Debt Solutions

Fast tracking your financial freedom

Tel: 0861 255 3328 / 021-557 9981

Email: info@allds.co.za

www.alldebtsolutions.co.za

https://www.facebook.com/

alldebtsolutions

Debt Budget

One Monthly Payment For All Your Debt

Bruce Leslie Borez

NCRDC1643

52 Church Street,

“NBS Building”,Wynberg

Tel: 021 824 8885

www.debtbudget.co.za


Tel: 0861 123 644

Email: info@debtrescue.co.za

Your Guide to Financial

Wellness and Recovery

0861 229 922

info@debthero.co.za

www.legalhero.co.za

WESTERN CAPE

CONSUMER DEBT SUPPORT

Annienne Nel NCRDC2452

Kairo’s House, 22 Fairfield

Southstreet, Parow, 7550

Office: 021 930 5791

Cell: 082 641 2328

Fax: 086 563 3264

e-mail: info@debtcentre.co.za

www.debtcentre.co.za


DON’T WORK WITH AN OUT

DATED VERSION OF THE ACT

UPDATED

2016

We are happy to announce that the Amended National Credit Act booklet

is now available via our shop.

Get the latest version for only R250.00

ORDER NOW

http://debtfreedigi.co.za/product/pocket-sized-national-credit-act-booklet/


SUPPORT SERVICES

Tel: 011 451 0041

Tel: 0860 072 768

www.maxpayments.co.za

Akani Solutions

Information Data Solutions

lana Van Herwaarde,

DC Operation Centre (PTY)

Tel: 0867227405 Email:

info@dcoperations.co.za

www.dcoperations.co.za

Credit Report App

Access Your Credit Bureau Report

Instantly on Your Phone

DCs help your clients use it during

application & to protect their ID

ID Protector

Detect ID Theft or possible ID Fraud

Subscribers notified by SMS when number is activated

DEBT

086 126 6562

debt@one.za.com

www.one.za.com

info@akanisolutions.co.za

www.akanisolutions.co.za


COMING SOON

TRAINING

COMING SOON

FINANCIAL PLANNING


LEGAL

Liddles & Associates

“It always seems impossible until it

is done” N. Mandela

(T) 021 930 5790

(F) 0866070940

(E) frontdesk@liddles.co.za

www.liddles.co.za

Steyn Coetzee Attorneys /

Prokureurs

Adri de Bruyn

11 Market Street / Markstraat 11,

Paarl, 7646

Tel: 021 872 1968

Fax: 021 872 2678

adri@steyncoetzee.co.za

RM Brown and Associates

16th Floor, The Pinnacle

Cnr Strand & Burg St

Cape Town

Tel: 021 202 1111, f: 021 425 0875

Email: roger@rmbrown.co.za


Your Debt Counselling Attorneys

Johannesburg | Cape Town

Kim Armfield

Attorney & Family Law Mediator

Address: Unit 1B, FinansHuis, 7

Voortrekker Road, Bellville

Tel: 021 949 1758 / 021 945 2526

Office cell: 084 8588 284

kim@legalwc.co.za

Andre Van Zyl

021 494 4862

info@bassonvanzyl.com

www.bassonvanzyl.com

COMING SOON

CREDIT BUREAUS


PAYMENT DISTRIBUTION AGENCIES

DC Partner

044 873 4530

Hyphen PDA

011 303 0060

NPDA

0861 628 628


SYSTEM PROVIDERS

Tel: 011 451 0041

Tel: 0860 072 768

www.maxpayments.co.za

Debt Review Software

Tel: 016 004 0031


CAPITEC CONTACT DETAILS

Form 17’s

Proposals

Court documents

General Queries

Refund Requests /

Cancellation of Debit Orders

Complaints

Insurance Certificates

ccsforms17@capitecbank.co.za

ccsproposals@capitecbank.co.za

ccsdebtrevieworders@capitecbank.co.za

ccsdebtreviewqueries@capitecbank.co.za

ccsrefundrequests@capitecbank.co.za

ComplaintManagement@capitecbank.co.za

coming soon

Sharecall Contact Number 086 066 7783 - Select Option 2

ESCALATION PROCESS

COMING 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

ABSA TASK SPECIFIC DEBT REVIEW ENTRY POINTS

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 DC Query Process

www.nedbank.co.za


AFRICAN BANK CONTACT DETAILS

011 256 9323

DebtCounselling@africanbank.co.za

ESCALATION PROCESS

COMING

SOON


Telephone: 031 251 4151

Fax: 031 251 4252

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

Proposals / Revised Proposals / Consents /

Related Queries

Notice of Service / Court Applications

Updated Balances / Settlements / General Queries

Section 86(10) Letters and All Related Queries

nca@consumerfriend.co.za

proposal@consumerfriend.co.za

court@consumerfriend.co.za

queries@consumerfriend.co.za

terminations@consumerfriend.co.za

ESCALATION CONTACT DETAILS*

Complaints / Service Delivery / Management

17.1‘s, 17 .2’s, 17.3’s, Rejections and 17 .W’s,

Change or Transfer of Debt Counsellor

Proposals / Revised Proposals / Consents /

Related Queries

Notice of Service / Court Applications

Updated Balances / Settlements / General Queries

ryan@consumerfriend.co.za

justin@consumerfriend.co.za

charlene@consumerfriend.co.za

charlene@consumerfriend.co.za

roderick@consumerfriend.co.za

diane@consumerfriend.co.za

*Please do not CC multiple email addresses.

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