Temporary ARA • As per CCMA PR 38, a TARA can be agreed with a borrower when: • Borrower needs extra time to return SFS & supporting docs • There is a delay in putting an ARA in place which would further exacerbate a borrowers arrears • TARA confirmation letter must be sent to borrower (Four-Eyed Process) Confirmation does not have to signed and returned, but letter will advise that borrower has 7 days to consider same. • If borrower declines TARA, account reverts to Arrears Process • TARA’s can only be put in place for a limited amount of time Note: CCMA TARA Notification Letter template has been drafted in accordance with this.
Arrears Process The Arrears process will enable a CM to manage an account in 3 ways: 1. Where there is no affordability / appropriate and sustainable solution that the borrower is deemed unsustainable. 2. Where there is affordability/ appropriate and sustainable solution then we offer an ARA. 3. specific items or complete specific actions and they have not responded in the required timeframe, the borrower may be deemed to be non-co-operating. A “3 rd missed payment” arrears letter is issued automatically to the borrower which will result in one of 3 situations: 1 2 3 Borrower responds and returns their SFS and supporting documents, enters the arrears management process where the account can be assessed for an ARA if sustainable Borrower responds and where the loan is deemed to be unsustainable, the account is exited from MARP via the the unsustainable process Borrower doesn’t respond which will allow the CM to progress the account into the not co-operating process