Debtfree Magazine July 2017

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.

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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 

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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 

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mentioned herein are believed to be reputable, 

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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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CALL US NOW 0861 635 467 

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DEBT REVIEW 

SCHOOL 

If you change your email 

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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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 


• retrenchment – we pay your 


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 

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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. 

IN A NUTSHELL is brought you by the DCM Business Partnership Programme, designed to 

support debt counsellors and consumers during the debt review process. For help, contact the 

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If you have suggestions for topics that you would like covered in future, please email info@dcmgroup.co.za 

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Telephone 044 873 4530 Fax 086 246 2450 

www.dcpartner.co.za

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

JOBS 

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Join the 

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An exciting place to work! 

Meerkat are looking for: 

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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 

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FINANCIAL 

PLANNING

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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 


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 






Cape Town 

Tel: 086 111 6197 

Fax: 021 425 6292 

info@creditmatters.co.za



Tel: 021 007 1688 







Cape Town 

Tel: 086 111 6197 

Fax: 021 425 6292 


FREE STATE 

Tel: 0861 123 644 

Email: info@debtrescue.co.za

LIMPOPO 



Tel: 021 007 1688 







Cape Town 

Tel: 086 111 6197 

Fax: 021 425 6292 


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 




Tel: 021 007 1688 


Tel: 0861 123 644 


MPUMALANGA 






Cape Town 

Tel: 086 111 6197 

Fax: 021 425 6292 

info@creditmatters.co.za



Tel: 021 007 1688 







Cape Town 

Tel: 086 111 6197 

Fax: 021 425 6292 


NORTH WEST 

Depopulating a generation of over 

indebted and populating a debt free 

generation. 

Tel: 0861 123 644 


Office No. 6, Prime Pharm Building, 

36 Dr Nelson Mandela Drive 

Tel: 0186320053 

Tel: 0877026744 

Email: papi@maaudebts.co.za 

www.maaudebts.co.za



Tel: 021 007 1688 







Cape Town 

Tel: 086 111 6197 

Fax: 021 425 6292 


NORTHERN CAPE 

Tel: 0861 123 644 




Tel: 021 007 1688 







Cape Town 

Tel: 086 111 6197 

Fax: 021 425 6292 


EASTERN CAPE 

Tel: 0861 123 644 


WEBSITE | www.debt-therapy.co.za 

debt therapy 

integrity guaranteed 

debt therapy is registered with NCR | NCRDC49 



Tel: 021 007 1688 


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 






Cape Town 

Tel: 086 111 6197 

Fax: 021 425 6292 


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 


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 



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.

Debtfree Magazine July 2017

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