August 2021 IDM Special Edition

SCAMDEMIC 

NO VACCINE IN SIGHT 

Issue 8 of 2021

EXCELLENCE IS DOING 

ORDINARY THINGS 

EXTRAORDINARILY 

WELL 

– John W. Gardner

WHAT MAKES US 

EXCELLENT? 

/ Unimpaired and automated PDA systems 

/ Integration with top-ranked Debt Counsellor systems 

/ Enhancing Debt Counsellor efficiency and sustainability 

/ Best customer support in the country – queries are resolved within 24 hours 

/ Strong compliance and best-industry-practice implementation is at our centre 

Call Chris van der Straaten 

Head of Hyphen PDA | 082 557 0437 

Or call our friendly support centre on 011 303 0060 - Option 2 

or visit our website www.hyphenpda.co.za

FROM THE EDITOR 

It has been rather impressive to see the worlds finest 

athletes run around empty stadiums and compete for 

Olympic gold. There were some memorable moments, 

as always, and it has given us an enjoyable distraction 

in the midst of a very hard and scary year. 

Here’s to the underdogs who surprised us all, here is to the Haka 

dancing, the perfectly synchronized swimming, the meme recreating 

Gold medal biting, the 14 year old perfect diving, the home runs hit 

into the empty stadiums, the javelins launched across the world, 

here’s to the new world records set on track and in the pool. 

The biggest winners were probably those who got to watch from 

the safety of their homes around the globe, while the biggest losers 

must surely have been the host country. As South Africa knows, 

hosting an international event of this size costs millions and millions 

in building and preparation. To then lose out of any possible revenue 

from visiting spectators, must have hurt. It just demonstrates how 

vulnerable we all are (even countries) to the effects of the pandemic. 

Other than a very expensive distraction, the Olympics is also a 

competition between the ‘best of the best’. It is a chance for 

those who excel to assess themselves against their peers. It is the 

culmination of years of personal preparation and training, of selfdenial 

and discipline, this takes razor sharp focus.

This is similar to the annual Debt Review Awards process. It is a 

chance for not only the entire industry to shine (and take a moment 

to pat one another on the back) but also for individuals, companies 

and practices to find out how they stack up against their peers. Be 

sure to catch our preview article, as everyone gets ready for the 

online Awards show on 10th of September. 

This month we consider how the pandemic has not slowed down 

unscrupulous people who are out to take advantage of others. Like 

true parasites of society, these scammers continue to try leech off of 

hard working people, regardless of the consequences. 

We hope the articles in this issue help you become more aware of 

these types of scams and more wary of other possible scams. 

You may not have the muscle bound body of an Olympian in peak 

physical condition, but if you are in debt review, then you too have 

been working on achieving a truly amazing long-term goal - the goal 

of getting out of debt. 

Much like a training athlete, success in debt review comes from 

staying focused, being willing to cast off distractions, learning to shop 

better, to save harder, to make the budget cuts others cannot, or 

simply are not prepared to make. 

If you can do this, then soon you will lift aloft your gold medal in the 

form of a clearance certificate, showing that you are winning at life 

and have become debt free!

FROM THE 

IDM DESK 

DEBT 

COUNSELLING 

DELIVERS AS 

DEMAND RISES 

Q2 2021 Debt Index 

shows although debt 

burden is growing debt 

counselling works. 

South African consumers’ debt 

situation is getting worse with 

the average debt-to-income 

ratio at its highest level ever, but 

there is some good news with 

more people seeking help and 

a significant increase in those 

successfully completing debt 

counselling.

This is according to the DebtBusters’ 2021 Q2 Debt Index, which tracks 

client trends quarter-on-quarter and over the past five years. 

In the second quarter enquiries about debt counselling increased by 18% 

compared to a year ago. Benay Sager, head of DebtBusters, attributes 

this to the after-effects of the nationwide lockdown and a narrowing of 

consumers’ ability to borrow. 

He says that the debt levels have increased substantially and the number 

of open accounts have decreased for consumers applying for debt 

counselling, both of which indicate that consumers are seeking help 

sooner. 

The pool of consumers borrowing has also shrunk, as supported by 

National Credit Regulator data, which indicates average unsecured loan 

size has increased by 46% and number of loans has decreased by 31% 

over the last four years. 

Compared to the same period five years ago the Debt Index found: 

• Real income is declining as inflation continues to bite: Nominal 

incomes were, on average, 3% higher than in Q2 2016, but when 

cumulative inflation growth of 24% is factored in, real incomes have 

shrunk by 21%. 

• The debt-to-net-income ratio is at an all-time high: Consumers 

enquiring about debt counselling are spending around 60% of their 

take-home pay to service debt. More concerning is that across all 

income bands the debt-to-income ratio is now at 122% and 152% 

for those taking home R20 000 or more.

FROM THE IDM DESK 

• Unsecured debt level continues to increase: The level of unsecured 

debt is on average 32% higher than in 2016 and up by 49% 

amongst consumers taking home R20 000 or more. This is a direct 

result of consumers using unsecured debt to offset the erosion of 

their take-home pay. 

Sager says despite all the bad news, which is perhaps unsurprising given 

the impact of successive lockdowns on an already struggling economy, 

there were some positive findings that show debt counselling works: 

• More consumers successfully complete debt counselling: There are 

now seven times as many consumers completing debt counselling 

as there were in 2016. 

• Effective mechanism for paying back debt: Consumers who 

successfully completed debt counselling in Q2 2021 paid 

back R320m worth of debt to their creditors as part of the debt 

counselling process 

He says the fact that 56% of applicants for debt counselling are male 

is also positive. In Q2 2016 more women (52%) than men (48%) were 

applying for help to restructure their debt. 

“In a society where men typically tended not to want to talk about or seek 

help with debt, it’s encouraging that men are becoming more proactive 

about dealing with debt problems.”

DEBT REVIEW 

LESSON #1 

If you begin to earn significantly more than 

when you started debt review, be sure to 

talk to your Debt Counsellor about how 

you can pay off your debts faster. 

You can finish debt review faster and end 

up saving thousands on fees and interest 

by paying even a bit more each month.

FREE BOOKLET 

FOR DEBT COUNSELLORS TO SHARE 

Are you being phoned by consumers who 

are asking how they can leave debt review? 

Is your inbox full of requests to remove a 

Debt Review Flag at credit bureaus? 

The free booklet, which you can download from the link below ( 1MB 

in size) covers many common questions and helps consumers learn 

more about the challenges involved with having their debt review 

status removed before paying off all their debt. 

DOWNLOAD AND SHARE 

Save Time 

Send Detailed Information 

Educate your Clients & Consumers

CONTENTS 

SCAMDEMICS: NO VACCINE IN SIGHT 

2021 DEBT 

REVIEW AWARDS 

POPI BASICS 

FOR DEBT 

COUNSELLORS 

DEBT VADER: WHY 

CONSUMERS ARE 

STILL NOT GETTING 

COURT ORDERS 

DEBT REVIEW 

SCHOOL 

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.

CONSUMER FRIEND 

USES 

SOFTWARE TO ENSURE 

POPIA COMPLIANCE! 

- Secure system-to-system data transfer (no human contact) 

- Elimination of data exposure from the use of email 

- Data specification is fit for purpose 

POPIA COMPLIANCE IS 

CRUCIAL THIS YEAR!

BREAKING 

NEWS

INDUPLUM CASE TO 

PROCEED AT SCA 

Back in 2019, the Western Cape High Court issued a landmark 

judgment regarding the double up or ‘in Duplum’ law as set 

out in the National Credit Act and other laws. 

The ruling went in the way of consumers and offered greater 

clarity on what fees can and can’t be charged and how these 

form part of the overall debt calculations of NCA Section 

103(5) in Duplum. 

Credit providers who really enjoy charging consumers lots 

of extra collections fees appealed the ruling. 

The case will soon be heard at the Supreme Court of Appeal 

(on the 7th of September 2021). The Stellenbosch University 

Law Clinic will be appearing to once again argue the matter 

on behalf of consumers.

We are the champion 

in your corner! 

DebtBusters provides a remedy for financially stressed 

consumers through effective debt relief solutions. 

Over 1 million South Africans who are facing tight 

budgets and are struggling with debt, have come to 

DebtBusters looking for a financial solution. 

086 999 0606 

info@debtbusters.co.za 

www.debtbusters.co.za

NCR CAMPAIGN ABOUT 

DEBT COUNSELLING 

Every year the NCR sets aside some time and money to 

promote the debt counselling process. At the moment, the 

NCR is busy promoting the message of how Debt Counselling 

offers a new lease on life for over indebted consumers. 

Though their press releases don’t actually discuss the 

extensive benefits of the process, the campaign does feature 

some extensive warnings pointing out such things as how 

debt review is not a savings mechanism, and to encouraging 

consumers to avoid people who advertise saying you can 

get up to 60% off you usual payments. 

They also warn that debt counselling is not for everyone and 

some people who apply can be rejected from the process. 

They also stress that the process is not free and there 

are many fees (which they try explain). They go into the 

maximum fees in detail and stress the importance of only 

dealing with a counsellor with a certificate. 

Hopefully consumers will be won over to this new lease on 

life by all the warnings and helpful reminders not to deal 

with unregistered persons.

DEBT REVIEW AWARDS 

10 SEPTEMBER 2021 

The annual Debt Review Awards will be live streamed on 

YouTube on September the 10th 2021. All are welcome to 

watch and you can find the links to watch live at 

www.debtreviewawards.co.za on the day. 

The YouTube Chanel can be found here: 

https://bit.ly/3kiIjuQ

NCR’S CREDIT INDUSTRY FORUM DISCUSSING 

CHANGES TO DEBT COUNSELLING FEE 

GUIDELINE 

The NCR from time to time release fee guidelines that it 

feels the industry should follow. These fee guidelines are 

often matched by debt review proposal software (which 

helps Debt Counsellors quickly make proposals to credit 

providers). 

At present the NCR are asking members of the Credit Industry 

Forum to consider a fee structure which asks attorneys to 

wait to get paid or to perhaps not get paid if clients drop out 

of the process. 

They have also proposed a fee structure that would see 

Debt Counsellors wait on courts and consumers for a long 

time to pay a quarter of their fees. 

Many Debt Counsellors and Attorneys are worried that such 

a fee structure will prevent them from being able to operate 

successfully and could wipe out the industry. 

For more information visit: www.debtfreedigi.co.za for a 

detailed examination over the next few weeks.

POPI-PROOF 

your PROCESSES 

WITH DREX 

Secure system-to-system data transfer 

(no human contact) 

Elimination of data exposure from the 

use of email 

Data specification is fit for purpose 

^ 

DID YOU KNOW? 

The President of South Africa has proclaimed the POPIA commencement date to be 1 July 2021. 

POPIA applies to any company or organization processing personal information in South Africa. 

Fines for non-compliance with POPIA can range up to 10 million ZAR (South African rands). 

POPIA defines personal information broadly as any information relating to not only a living person, 

but also a company or legal entity. 

^ ^ ^

DRAWING MONEY FROM 

PENSIONS TO PAY DEBTS? 

There is a lot of discussion, on a government level, about 

making changes to current legislation which would allow 

consumers (under certain circumstances and to a limited 

amount) to draw part of their pensions early. 

As soon as mid 2022, changes to laws around pensions 

may allow some troubled consumers’ access to some of 

their pension funds. While this would have a massive knock 

on effect on the future value of peoples’ pensions, cash 

strapped consumers are desperate to get at these funds 

now and are happy to worry about retirement later. 

Government is also looking to lock pension investments into 

local infrastructure building in an effort to fund government 

projects.

NEW FINANCE MINISTER 

President Ramaphosa recently made some significant 

changes to his Cabinet. In the midst of all the changes, 

Finance Minister Tito Mboweni handed in his resignation. 

The President then invited the head of the ANC’s NEC 

economic transformation sub-committee, Mr Enoch 

Godongwana to take on the role as Finance Minister. He 

accepted. 

Mr Godongwana has served as a director at Mondi, and 

Platinum Group Metals as well as chairperson of the 

Development Bank of Southern Africa. He comes from 

a trade union background and at one time served as the 

general secretary of Numsa. He spent time as Provincial 

Minister of Finance in the Eastern Cape before becoming 

the Deputy Minister of Economic Development. 

In the past, Mr Godongwana has been outspoken about 

overspending by Government and made statements about 

the need for SA to have better social infrastructure to meet 

people’s basic needs.

BANK ZERO FINALLY 

GOES LIVE 

After delaying for nearly 3 years Bank Zero has finally opened 

their doors. Bank Zero says they delayed their launch for so 

long to ensure that their digital offerings aimed at businesses 

were just right. 

The latest, digital only, bank has said that, unlike some of 

their competition, they intend to focus primarily on business 

banking clients. That said, Bank Zero will also have smaller 

accounts for those just looking to save (as it would be foolish 

to turn these clients away). 

Bank Zero says they will not be offering clients overdrafts 

and loans at this point.

DEBT REVIEW 

LESSON #2 

Talk to your Debt Counsellor about what 

would happen if you suddenly lost some 

of your income. 

They may be able to help you investigate 

insurance specifically for people in debt 

review which can help in that situation. In 

debt review you need to learn to plan for 

the unexpected.

YOU SHOULD BE 

SAVING 

BUT YOU ARE 

SCAMDEMIC 

NO 

NOT 

VACCINE IN SIGHT

SCAMDEMIC: NO VACCINE IN SIGHT 

DEAR FRIEND... 

How many times can you win the UK lottery without 

even entering? 

How many distant relatives (who you’ve never heard 

of) have left you the sole beneficiary of their massive 

estate? 

How many former finance minister’s sons or daughters 

have contacted you, asking for help to move money or 

gold out of their country? 

Sometimes your phone goes ahead and wins a 

competition without you. Well done smart phone! 

Heck, sometimes Elon Musk is giving away crypto 

currency and wants your help to hide the profits from 

the IRS. You never realized he even knew who you 

were, amazing!

Our email and sms in-boxes are relentlessly full of horrible scams 

from unscrupulous crooks who simply want to con you out of your 

hard earned money. 

Covid-19 has not slowed these scammers down, they are as 

active now as ever, perhaps even more so. There are even specific 

scams that target people who are in debt review, and can be very 

convincing. 

What are some common scams to watch out for, and how can you 

protect yourself from being taken to the cleaners?


419– THE ORIGINAL 

INTERNET SCAM 

The “419 Scam” or “Nigerian Prince” scam, is one of 

the oldest tricks in the book. You may think this scam 

is fairly new, but in its infancy it was carried out via 

faxes and then letters. The invention of email has really 

helped these scam artists extend their reach globally. 

How it works: 

A mysterious person claims to have a way for you to get lots of 

money, all you need to do is pay a small fee upfront to get access to 

those funds. 

For example, a foreign prince wants to send you gold bars via the 

postal service, or through their “lawyers” but a small release fee is 

needed to facilitate some government paperwork. They ask if you can 

please pay this fee (or part of it) into an account they give you and 

then the deal can go ahead.

After the target pays the fee, the conman either immediately ghosts 

them, or create excuses for delays and try to get you to pay a little 

more before disappearing. 

The FBI often refer to these scams by the number ‘419’ since it is the 

section of the Nigerian Criminal Code that deals with fraud. 

James Vietch the comedian has become famous over the years for 

answering these types of messages and messing around with the 

conman on the other side of the scam. 

He leads them on for days or weeks, even months with ridiculous 

comments, requests or even promises wasting their time so they 

cannot go after vulnerable people. 

Have a laugh at their expense here: 

www.ted.com/talks/james_veitch_this_is_what_happens_when_you_reply_to_spam_email?language=en


I WILL DO AN EFT 

Selling things via Gumtree, OLX or other public 

platforms is super convenient and can help you raise 

some much needed cash when your ends don’t meet. 

A common scam is to contact you from “far away”, and ask you to 

send the sale item to them via the post. The person sends proof of 

payment and then waits for you to send the item. 

More brazen crooks might even show up in person after convincing 

you that they have made the bank payment. 

How it works: 

The person makes a payment that reflects on your online banking 

(you may even call the bank and check) and then later reverse the 

payment, or they made the payment in such a way that it bounces 

back to them. 

They then end up with the item and you end up with nothing.


BANKING SCAMS 

You may often receive emails that look like they are 

from your bank asking you to sign in using your log in 

and password to confirm some information. 

When you type in those details, criminals use that information to try 

get access to your accounts. 

The banks have worked really hard to prevent these scams, and 

these days banking apps ask you to confirm things with your finger 

print or via one time passwords. Even so, with access to only basic 

information about you, scammers can try to get access to your 

accounts. 

OTP Scams 

Since the banks have made it harder for scammers to gain access to 

your accounts without one time pins, scammers have had to change 

their tactics. They now try to convince you to give them your OTP 

while they try make withdrawals. 

How it Works: 

You receive a call from a “bank employee” (scammer) who tells you 

they are from the bank and maybe even asks if you are the account 

holder and mentions some details like your address or the account 

number.

Impressed that they have some of this info you begin to trust them. 

They may even ask you some security questions to harvest more 

information from you. Wow, these people are serious about your 

safety (or so it seems). 

They then tell you that someone is performing suspicious 

transactions on your account. Oh no, what must I do? 

They tell you that they are going to send you some One Time Pins or 

passcodes to stop the transactions. 

Then your phone starts to get OTPs they are busy making transfers or 

purchases on your account. 

They ask you to tell them the code you just received, so that they can 

stop the payments being made. In the mean time they are actually 

using those OTPs to complete the transaction themselves, with your 

help! 

A big part of this scam is to pressure you, and make you feel the 

urgency of stopping such payments. They do not give you time to 

think or time to hang up and call the bank directly (which is what you 

should actually do).


DEBT REVIEW SCAMS 

Some scams target people who are in debt review. 

The scammers know a little about the process, and may even have 

access to some information about your debt review, such as who 

your Debt Counsellor is, or how much you pay towards your debt 

each month. 

What are some of the most common scams?



NEW ACCOUNT 

DETAILS 

This is actually a fairly common scam in many 

industries and involves someone telling you that the 

PDA banking details have changed, and asking you to 

make a payment into the new account. 

How it Works: 

Someone from your “Debt Counsellors office” (the scammer) calls 

and says that they have good news for you, your payment amount 

has been reduced. What good news!!! This is the bait to draw you 

in. Who wouldn’t want to pay less? Then they tell you that all you 

now need to do is pay the reduced amount into a different account 

number (for one reason or another). 

It is important to note that the PDAs have not changed their bank 

details for years and years, and this is unlikely to happen. If someone 

tells you this, they are trying to scam you. 

What you should immediately do, is pick up the phone and call your 

Debt Counsellor directly (the person you actually know by voice 

and perhaps face to face) and ask if any such change has actually 

happened.

Call their Bluff: 

Since debt review is very paperwork heavy they should be able to 

send you the restructured payment plan with the reduced payment 

amount, and perhaps even the documents from the credit providers 

who are now happy to get paid less each month (these don’t exist 

obviously). 

Debt Counsellors also get targeted by these types of scams. For 

example, some scammers contacted many Debt Counsellors and told 

them the National Credit Regulator (NCR) had changed bank details, 

and they should pay their annual renewal fees into the new account. 

It was, of course, the scammers own account and not that of the 

NCR. Same scam but a slightly different target group.



YOU CAN GET 

A NEW LOAN 

A common scam is to target people in debt review 

who are not actually serious about getting out of debt. 

The scammer gets in touch and promises the consumer that they can 

get access to a new loan even though they are in debt review. They 

appeal to the desperation or greed of the person in debt review, very 

similar to the classic 419 scam. 

How it Works: 

Once again, the idea is that the scammer promises you could get 

access to a loan, but only if you pay a small upfront fee. They say 

that their business is not worried about things like “black listing” (a 

nonsense expression) or “debt review”. They promise not to do any 

credit bureau checks before giving out the credit (even though the 

law requires it).



YOU CAN GET OUT 

OF DEBT REVIEW 

A growing scam is to tell people they can magically 

leave debt review before they have paid off all their 

debt. This is not legally possible.* 

Being in debt review is saving you thousands in fees and interest, but 

some people find it hard to stick to the tight budgets and to never 

miss payments. They long for the days when they used to owe people 

lots and being chased by collections agents 24/7 (we don’t know 

why). 

They miss having access to money they had not earned, and 

sometimes find themselves in need of more money to pay for 

something urgent. Instead of turning to their Debt Counsellor for 

advice, they begin to search the internet for a new loan and fall into 

the hands of scammers.

How it Works: 

You go online and Google “how to leave debt review” (for one reason 

or another) instead of talking to your Debt Counsellor about it. You 

find a Facebook page or website with promises of getting you out of 

debt review. It seems easy and they promise quick results. 

They ask for a fee upfront to get you out of debt review. They advise 

you not to pay your debt review this month and rather pay them their 

fees. 

Much like a classic 419 scam they then either try do a little bit of work 

and get you to pay them again or they simply disappear. 

*Except if the only debt left is your bond. In such a case, the Debt Counsellor is the best 

person to help you leave debt review safely so that you do not lose your home. If a consumer 

has never received a court order saying they are over indebted then a court may also decide 

that the consumer now has enough money each month that they don’t need debt review. In 

such a case, once again, your Debt Counsellor is the best person to help you sort this out via 

the courts but it takes some time.


WHY ARE SOME 

SCAMS SO TOTALLY 

RIDICULOUS AND 

OBVIOUSLY A SCAM? 

Sometimes scams seem so obvious. Why do scammers 

send poorly written emails with promises of ridiculous 

large amounts of money? 

They do this because they are targeting people who do not see the 

danger, those who overlook the obvious warning signs and still go 

ahead. These gullible people are their targets, not the ones who see 

the danger. 

So they continue to use this shotgun approach, sending out 

thousands of emails or sms, and see who takes the bait.


PROTECT YOURSELF 

FROM SCAMS 

Rather than following links to dodgy websites you find 

in suspicious emails, go directly to your banks website. 

Type the link into the address bar on your computer or 

phone. If the offer is real, you will find what you need 

on your banks legitimate site. 

If someone calls you and says they are calling on behalf of the banks 

fraud department, thank them for their call, hang up and call the bank 

yourself. Never give anyone an OTP, the banks all assure us that their staff 

will never ever ask you for these details (or your account passwords). 

If you are in debt review, then the number one way to avoid scams 

is to regularly communicate directly with your Debt Counsellor. If 

approached by strangers with offers that seem too good to be true, 

reach out directly to your DC and discuss the offer with them. Don’t 

be desperate to take on more debt or be in a hurry to get out of the 

process for no good reason. After all, you want less debt and not 

more. 

If you are struggling to make ends meet each month, or are faced 

with an emergency, then contact your Debt Counsellor for the best 

advice. Also, please remember the Payment Distribution Agencies do 

not change their bank details.

Woman photo created by wayhomestudio - www.freepik.com


AVOID THE 

SCAMDEMIC 

Sadly even now, scammers are out there and they want 

to rip you off. They will promise you the world, as long 

as you pay upfront. 

Never let anyone trick you in to paying upfront for a service you have 

not yet received. 

While there is no 100% way to be safe, you can avoid the most 

common scams out there with a little bit of caution and a dash of 

common sense.

DEBT REVIEW 

AWARDS 

2021 

IS COMING

THE DEBT REVIEW AWARDS IS COMING 

IT’S A HARDKNOCK 

LIFE... 

Since the Zoom-demic began, time has become hard 

to keep track of. One minute it’s April 2020 and the 

next it is almost 2022. 

But before this year ends, we must spend a few moments celebrating 

debt review, the hard working companies, practices and individuals 

who work in the industry. 

The annual Debt Review Awards will be online again this year, and 

we invite everybody to tune in and enjoy the show with us. Friday, 10 

September is just a few weeks away, so let’s take a look at what the 

awards are, why they matter and how you can watch this year.


WHAT ARE THE DEBT 

REVIEW AWARDS? 

The Debt Review Awards originated in 2014, when 

Debtfree Magazine Editor, Zak King brought the 

industry together in various committees to identify 

which credit providers, Debt Counsellors and Payment 

Distribution Agencies were performing well. 

A small red carpet gala was held, and leaders in the industry were 

invited to attend. It was a celebration of all the good that debt review 

does for consumers and the economy. 

On that occasion, the very first Golden Piggy Bank awards were 

handed out, and so the Annual Debt Review Awards were initiated. 

The processes are being refined each year, and the award recipients 

are now based on the results of online peer reviews. Different NCR 

registrants are able to complete each year. 

The results of the combined reviews are revealed on the day of the 

Debt Review Awards Gala. In 2020, the Gala shifted to an online show 

(due to the pandemic), and will be live streamed again this year.

YOU HAVE TO SEE IT FOR YOURSELF...


WHY DO WE NEED 

THE AWARDS? 

While it is great for credit providers and Debt 

Counsellors to receive the highest ratings in the peer 

reviews, and to receive a Golden Piggy Bank, the 

Awards are more than a popularity contest. 

There is a tendency, in any industry, to focus on the ongoing 

problems. This is because those problems often slow down the 

process, and cause extra work and headaches. So, when there 

is an industry meeting, it is often with the goal of identifying and 

deliberating these problems to overcome them. 

This is a great idea, but it very quickly turns into a big gripe session, 

with a negative tone. So, when do you celebrate all the good being 

accomplished in the industry? Sadly, this is done rarely, if ever. 

Due to the many challenges with a complex and developing 

industry, like debt counselling, there are plenty of occasions to 

moan and attempt to rectify issues. In fact, it is a vital focus of many 

conferences, forums and other meetings.

This is why the Annual Debt Review Awards are so important for 

the debt review industry! It provides all who work in the industry, a 

chance to reflect on all the good that has been accomplished. This is 

not to be minimized, Debt review saves lives and has helped cushion 

the local impact of the global financial crises. 

It also gives those who work in the industry a chance to pause, and 

focus on what is making some of their colleagues businesses work 

smoother, more efficiently. 

It poses the important question: 

What does it mean to be a good debt counsellor, a good 

credit provider, a good payment distribution agent?


THE PEER REVIEW 

PROCESS 

You may wonder how does the peer review process 

work? 

Here is a quick chart explaining how the process takes place during 

the year leading up to the Awards Show.


WHAT TO EXPECT 

DURING THE 

AWARDS SHOW 

Based off the experiences of the live streamed Awards 

show of 2020, the organizers are running a preshow 

around midday and the Awards Show itself from 2pm 

on Friday the 10th of September. 

The idea behind holding the event during the afternoon, rather than 

on a Saturday evening (as was the case with the red carpet gala in 

the past) is to give as many people who work within the industry the 

chance to enjoy the show. 

Most of the larger Debt Counselling practices and credit provider 

debt review offices will close their phone lines a bit early that day, and 

invite their entire team to enjoy the show. 

For those who work remotely, this may be done over a shared Zoom 

or Teams session or perhaps just on their own device at home while 

Whatsapping with others are the office.

For those who are working in offices across the country, managers 

are arranging socially distanced group viewings on big screens or 

computers at work (there may even be snacks). 

The Preshow will feature group chats by some within the 

industry, where we can be a fly on the wall and see what they 

discuss. There will also be interviews with previous winners, 

presentations and some recaps regarding the process and 

candidates who are in line to take the top spots this year. 

The Preshow also gives the streaming team time to sort out 

any possible glitches and hiccups that might otherwise ruin 

the fun. 

The Main Awards Show will begin at 2pm. There will be 

speeches by familiar faces (including the National Credit 

Regulator and National Debt Counsellors Association). There 

will also be some entertainment (with a chance for you to 

sharpen up some of your skills). We will also find out who 

the 2 winners of the Significant Contribution to Debt Review 

awards will be, as well as the new Technology Adoption 

Award. 

After the speeches and a presentation about the debt review 

process, (including consumers getting out of debt) the results 

of the Peer reviews will be announced. 

The show should wrap up around 4pm so that those who 

commute will be able to do so around their normal transport 

times.


HOW TO WATCH THE 

AWARDS 

All you need to be part of the action this year, is a device 

and access online. The Debt Review Awards show will 

be live streamed via YouTube. 

Step One: For up-to-date info visit www.debtreviewawards.co.za. 

Besides having information about the process, previous winners and 

the criteria used the site will feature links you can click to watch the 

show live. 

Step Two: You can also subscribe to the Debt Review Awards 

YouTube Channel HERE. 

Step Three: Check your email. Closer to the time the organizers 

will be sending out emails with reminders to those who have been 

participating in the peer reviews and those who have signed up to the 

mailing list. 

Step Four: Follow Debt Review Awards (and Debtfree Magazine) on 

social media to get access to all the reminders, links and even up to 

date results as the show streams out live. 

Check out our other social media channels: 

youtube facebook instagra twitter

A BIG THANK YOU 

Each year the sponsors help to cover the costs of running the 

peer reviews, maintaining the website, auditing and preparing

TO OUR SPONSORS 

the results and organizing the Awards gala/show. This year we 

want to particularly thank the following Supporters and Sponsors.

DEBT REVIEW 

LESSON #3 

You should discuss your monthly budget 

with your Debt Counsellor from time to 

time. 

Your budget needs to adjust and you need 

to adjust your monthly spending to ensure 

that you never miss a court ordered debt 

review payment.

POPI ACT 

PROTECTION OF PERSONAL INFORMATION 

P e r s o n a l i n f o r m a t i o n i s d a t a t h a t c a n b e u s e d t o 

i d e n t i f y a s p e c i f i c p e r s o n 

IDENTIFYING 

DETAILS 

CONTACT 

DETAILS 

DEMOGRAPHICS 

BACKGROUND 

INFORMATION 

FINANCIAL 

SOCIAL 

MEDICAL AND 

HEALTH 

D o n o t l e a v e d o c u m e n t s o r s c r e e n s t h a t c o n t a i n p e r s o n a l i n f o r m a t i o n o p e n f o r a n y o n e t o s e e . 

S h r e d o r p r o p e r l y d e s t r o y / d e - i d e n t i f y d o c u m e n t s t h a t a r e n o l o n g e r r e q u i r e d f o r w o r k p u r p o s e s . 

R e g u l a r l y u p d a t e y o u r p a s s w o r d s t o s y s t e m s a n d a p p l i c a t i o n s t h a t c o n t a i n p e r s o n a l i n f o r m a t i o n . 

A v o i d s e n d i n g s e n s i t i v e i n f o r m a t i o n o v e r e m a i l a n d c o m m u n i c a t i o n d e v i c e s . 

D o n o t s t o r e s e n s i t i v e i n f o r m a t i o n o n d e s k t o p s o r f l a s h d r i v e s t h a t c a n b e e a s i l y i n t e r c e p t e d .

POPI BASICS 

FOR DEBT COUNSELLORS

POPI BASICS FOR DEBT COUNSELLORS 

INTRODUCTION 

Debt review is an information rich process with 

personal information at its core. Introduce the 

Protection of Personal Information Act, 2013 (‘POPIA’) 

to the mix and suddenly the information obligations 

upon Debt Counsellors become that much heavier. 

Your Client is now 

the “Data Subject” 

There is a lot to consider from a processing perspective when 

undertaking a debt review process for a consumer, who is now 

known as the ‘data subject’ in the PoPI Act. 

Personal information is processed from the start of a debt review and 

continues for an extended period of time until the consumer is finally 

cleared by the Debt Counsellor. 

Even after the review ends, data has to be stored for some time. What 

are some things you need to know about the PoPI Act if you are a 

Debt Counsellor?


THE PURPOSE 

FOR PROCESSING 

PERSONAL DATA 

Firstly, defining the purpose for processing of 

consumer personal data is captured in the National 

Credit Act, 2005 (‘NCA’). 

Simply put ,the information of the consumer is collected and 

processed in order for the debt counsellor to fulfill its statutory 

obligation under the NCA; both a contractual and legal purpose. 

The NCA sets forth the information required in order to support 

a debt review application from simple identity information to the 

complexities of credit account numbers, balances and other financial 

information. 

This info needs to be added into your PoPI Manual.


THIRD PARTY 

SERVICE PROVIDERS 

Secondly, debt counsellors make use of third-party 

service providers in order to either interact with credit 

providers, credit bureaus or other role players in the 

debt review process. 

Service providers are used to process debt reviews on systems and via 

PDAs to distribute payments to credit providers. 

An important compliance step would be understanding these 

role players and defining which relationships amount to ‘operator’ 

relationships and formulating agreements to manage your 

compliance together with your operators. 

You may need to update some agreements with 3rd Party Suppliers 

and reflect the use of 3rd Parties in your paperwork with clients.


DATA SECURITY 

Lastly, but definitely not least, data security is an 

important aspect of POPIA and a vital compliance step 

in your compliance program. 

Debt counsellors need to understand their IT infrastructure and the 

security parameters around that infrastructure. 

As you become more familiar with your IT operations, you put 

yourself in a position to understand the internal and external 

risks to your data security, enabling you to update your security 

where necessary. This may involve a little spending, to ensure your 

compliance. 

Debtfree Magazine would like to thank SupraLex 

for their help in compiling this article. If you would 

like to learn more about PoPIA Compliance or find 

resources head over to: 

https://www.linkedin.com/in/supra-lex-70456316a/

DEBT VADER

WHY CONSUMERS ARE 

STILL NOT GETTING 

COURT ORDERS 

When they wrote the National Credit Act (“the NCA”) 

the lawmakers envisioned a debt review system that 

would ensure over indebted consumers could obtain 

assistance in rearranging their debt obligations (in a 

harmonised manner) that would lead to the eventual 

satisfaction of all their debt obligations. 

It was meant to be simple, and they thought everyone would just 

follow the regulations set out by the NCA and consumers would get 

their court order in a reasonable time. Instead, what we saw from the 

outset, and are still seeing, is the opposite. Thousands of consumers 

who have applied for debt review still do not have a court order and 

feel that the debt review process has failed them. The harsh reality 

is that this is true for more than 50% of consumers who have ever 

applied for debt review. 

Having identified that there is obviously a problem; we should try 

to identify the causes and then try to rectify them as best we can. 

Looking at the challenges in the current debt review process, there is 

not just one guilty party causing all the problems that can be blamed 

for everything. No, across the industry many different role players 

have to share at least some of the blame.

DEBT VADER 

Here are just a few of the problems that we commonly see: 

Debt Counsellors: 

Debt review, like most businesses, is driven by profit. Debt 

Counsellors would not bother to work in the industry if it was not 

possible to sustain a living from doing this work. With the current fee 

structure, signing up a consumer is more profitable than keeping a 

consumer, this means that when a consumer first gets introduced to 

debt review, he is often promised the moon and the stars. 

As soon as the consumer pays the Debt Counsellors’ fees, the 

incentive for the DC to continue providing excellent service, 

disappears. So, what happens? Disappointed consumers, who are 

entitled to the very best, especially when it come to their livelihood, 

often try to cancel the debt review process because of bad service. 

Credit Providers: 

The Act envisioned a debt review system where credit providers 

would act in good faith and eagerly participate in the debt review 

process. Credit providers however often fail to respond to Debt 

Counsellors’ requests for even a simple certificate of balance, and 

many simply fail to respond to restructuring proposals. 

Failure on the part of credit providers with these basic things, 

hinders the debt review process, which then leads to termination of 

accounts (by these same credit providers or others) and often results 

in consumers not being able to place certain accounts under debt 

review, which in most cases was the reason they applied in the first 

place.

Credit providers also commonly fail to cancel debt order requests, 

and allow their collections arms to continue harassing consumers 

even after they have applied for debt review. These actions on the 

part of credit providers lead the consumers to feel like the debt 

review process has failed them, and so they incorrectly blame Debt 

Counsellors and then try cancel their applications. 

The Courts: 

The courts play a crucial part and must ensure that the interest of 

all the parties are protected when hearing the matter. Certain courts 

however, focus more on technicalities than the merits of the case. 

These courts have very strict requirements that need to be complied 

with, before the court even bothers to look at the merits of the case. 

Certain courts for instance, require a certified copy of the consumers 

ID, even though all the other documents, (including those of the 

credit providers), confirm the identification of the consumer. 

These additional requests, even though they are within the 

Magistrates discretion, give the consumer the impression that they 

are not receiving the protection offered in the NCA. Many consumers 

struggle to find the time and finances required to meet these extra 

demands which they would not face in a different court. This can 

result in massive delays and many extra trips to the courts for the 

Attorneys trying to help the consumers and banks. 

National Credit Regulator: 

The NCR has a mandate to regulate the industry and, inter alia ensure 

the debt review process works. Years after the inception of the NCA, 

the problems mentioned above sadly still persist.

DEBT VADER 

The last task team report about debt review was done all the way 

back in 2009, over 12 years ago. Unscrupulous Debt Counsellors, 

who are well known to credit providers and other hard working Debt 

Counsellors, still somehow manage to operate in the industry. Greedy 

and inefficient credit providers still get away with debiting consumers 

after they applied for debt review, and courts seem to just add more 

and more requirements daily due to the Act not being amended to 

address such issues. 

These are just some of the reasons why so many consumers are still 

not getting court orders. There are others, of course. The result is that 

so many who have entered the process and are loyally paying off their 

debts can unfortunately end up thinking the process is not working 

(even though it actually is). This can make them think about dropping 

out of the process – which is an incredibly bad idea. 

All parties in the debt review industry have an obligation to try 

and help desperate, debt stressed South African consumers. It will 

take a concerted and ongoing effort focused on solving problems 

rather than personal rights or convenience to ensure that the NCA’s 

envisioned process is actually achieved. The question is, will it happen 

or will these issues simply continue to drag on and on? 

*The views expressed by Debt Vader do not necessarily reflect those of the Debtfree 

Magazine team. The purpose of the article is to spark debate and conversations around this 

topic for the betterment of the industry. 

To give Debt Vader a piece of your mind, send us a message for him at: 

DebtVader@debtfreedigi.co.za

August 2021 IDM Special Edition

Create successful ePaper yourself

Delete template?

Save as template?