Debtfree DIGI May 2016

South Africa’s debt counselling magazine

May 2016www.debtfreedigi.co.za

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PROFESSIONAL DEBT COUNSELLING ATTORNEYS

C O N T E N T S

NEWS

NEW LAWS TO PROTECT CONSUMERS

DEBT REVIEWAWARDS

SERVICE DIRECTORY

YOUR INSURANCE MIGHT NOT PAY

NEW INTEREST RATES

When travelling down life’s highway, they say it is good to stop and take a moment to appreciate all the good around you. This is because one can quickly become lost in the rush of daily life that you don’t enjoy the good things around you. There is another saying about wood and trees. Basically sometimes because of the day to day things we deal with we lose sight of the big picture. This can be true of those under debt review. Once the initial honeymoon period wears off the daily drudgery of making ends meet can make us lose focus. It is important that if we want to make a success of debt review we need to celebrate the small victories daily. Food on the table, less stress over who is calling, paying off a smaller account. A positive attitude helps make a success of debt review.We have a jam packed issue this month all about debt review. We catch up with the progress on the annual Debt Review Awards which has been underway for a while now. Some important questions are answered that you may have been wondering about. We also look at all the local industry news and consider how this will impact on you.Did you know that, though you are paying your insurance premiums each month, you might be in for a nasty surprise when you try claim? Be sure to read about a shocking development that has unfairly hurt some consumers under debt review.We catch up with the various Debt Counsellor

associations and see what everyone has been up to and has planned for the next few weeks toward the back of the magazine. Also in this section is a comprehensive list of service providers such as attorneys and Debt Counsellors. So, if you need help, be sure to check out the service directory section.We look at the new maximum rates credit providers should now be charging on your accounts and how one credit provider association tried to stop these from coming into effect and why. Another hot topic we touch on is something called:” Fee Sharing”. You may never have heard of it but it has become a pet project of the NCR that is making many operations change the way they do business. We discuss the recent ruckus over the topic and what it means for you. Be sure to measure your progress in terms of where you would be today if not under debt review. Take a moment to enjoy a phone which is not always ringing with demands. Breath deep and contemplate how your family is able to cover your monthly running costs while still paying off your debt. Be sure to enjoy the good things every day has to offer as you under go the debt review process and before you know it you will be debt free.

EDITOR’S NOTE

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All information correct when published, 17/05/2016, and subject to change.

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INDUSTRY CONSUMER

NEWS FLASHPDA REGISTRATIONSOver the last few years since the concept of Payment Distribution Agencies was first introduced with the backing of the National Credit Regulator 5 entities operated as PDAs. Two of these closed their doors (African Bank and CPE). The other 3 (DC Partner, NPDA and Hyphen PDA) operated under service level agreements with the NCR. This meant they had to stick to the requirements of the NCR and were regularly audited to make sure they met these standards. Some Debt Counsellors and consumers however pointed out that these firms found no place in the National Credit Act, only having been conceptualised after the launching of the debt review process. The NCR were strong in their advocating of PDAs and included requirements for most Debt Counsellors to make use of PDAs in accepting funds from consumers. Recently the NCA was amended and after many years PDAs got mentioned. They also had registration conditions laid out. Over the last year the 3 PDAs have been going through the registration process and as of May 2016 all 3 are now registered with the NCR. For those who had issues with PDAs before this will now set their mind at rest. They are now firmly part of the law and registered with the industry regulator. Consumers of course, have the option of handling their own distributions but should be aware that for most Debt Counsellors they are not allowed to accept funds directly from

consumers and so even if not distributing the consumers funds, should be collecting the Debt Counsellors monthly after care fees and restructuring fee (as per the DCs T&Cs with the NCR) from consumers.

DEBT AMNESTY BANDIED AROUND AT PARLIAMENTRecently the National Credit Regulator (NCR) appeared before the Parliamentary Committee for Trade and Industry to discuss the NCR’s role and a proposal in regard to how to get the poorest most vulnerable South African credit users out of debt.. The NCR has been under increasing pressure to be seen performing their function as their role in the Twin Peaks model is coming into focus. Recently Ms Nomsa Motshegare (NCR CEO) briefed parliament about possible remedies for the huge amount of debt consumers have taken on which they actually can’t afford to repay. After a look at some interesting projects that have been run in other parts of the world there was a review of the current remedies in South Africa for those struggling with debt. At this point the NCR called for additional responsibilities and powers saying this would help them be more effective. A Debt Forgiveness Programme was discussed (often around election time there has been the carrot dangling of some sort of amnesty held out to voters). In particular, this discussion looked at debts owed to African

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Bank (the new African Bank wants and needs consumers to pay back their old debts to help keep them afloat), people coming into the job market after spending a lot on education (student loans) and not being able to get work (50% unemployment in this age bracket) , Mine workers over committing to debt and facing garnishee issues, as well as, those many South Africans with no jobs and no income who somehow got credit and are now in debt. The NCR pointed to current provisions such as prescription of debt, the move against EAOs (Garnishee Orders) and making it harder to get these at court, and Reckless Credit investigations by Debt Counsellors. They feel that these provisions (along with the Debt Review and Sequestration processes) offer consumers good options. It was pointed out however that the cost of sequestration kept it out of the hands of the poor. Debt Review applications while high do not represent a significant percentage of those consumers dealing with debt at present. The meeting ended with a decision to do more research into the topic which leaves things unresolved but manages to continue to dangle the carrot of another so called “amnesty” up in the air.

REPO RATE REMAINS THE SAMEThe Reserve Bank have announced that the Repo Rate (off which all your other credit rates are normally calculated) will remain unchanged at 7%. The Repo Rate is the rate that the SA Reserve Bank lends money to other banks. They in turn add interest to that figure to make profit before repaying the SARB. Reserve Bank Governor Lesetja Kganyago announced this month that the rate , which we have been

warned will be going up at some point over the next few months, will remain the same for now. Mr Kganyago said that the Monetary Policy Committee feel that due to some positive signs in the economy that they could halt the climb in the rate, for now. They specifically warned that this was not the final resting point of the rate and that if necessary they will not hesitate to increase the rate. In fact, one member of the MPC had come out very strong in favour of a 25 base point increase but the other members of the committee had disagreed. There have already been two increases in the Repo Rate thus far this year.

MFSA UNABLE TO PREVENT NEW MAXIMUM RATES FROM COMING INTO EFFECTIn a bid to protect the interests of their members, credit provider association Micro Finance South Africa (MFSA) made an urgent application to the Courts to prevent the amended maximum interest rates which the DTI had published (in the Government Gazette) from taking effect this month. MFSA have warned that the drastic reduction in the maximum allowed rates for unsecured credit (which their members offer) will have disastrous effect on their members profitability and cause many to close shop. this they warn will lead to many low income earners being unable to access such credit or forcing such consumers into the arms of unscrupulous, unregistered loan sharks. Though the DTI had allowed a period of comments and suggestions based on their proposed rate changes MFSA felt that their had not been enough research and consideration of the financial ramification done prior to the new rates coming into effect this month. This was why MFSA took the matter

NEWS CONTINUED

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to the courts, since neither the DTI or NCR were prepared to change the new rates or hold off on their implementation. The matter was heard in May and the ruling given (also after just one day – which is speedy). Both MFSA (with their 3 expert witnesses) and the DTI made their case and the courts found in favour of the DTI and allowing the new rate changes to go ahead without any delay. The Court, in it’s ruling, stated that they were not convinced the matter was actually that urgent or exceptional. They also mentioned that the DTI had engaged in consultation with the industry (and public) in regard to the proposed changes. A strong point which came to the fore was that after consultation the DTI had in fact made some changes to their original proposal. Originally the DTI wanted to reduce the maximum interest rate for unsecured credit by 7.9%. After consultation however they reduced that cut to 5. 65%. Also mentioned was the requirement for all people and businesses offering credit to be registered with the NCR (which it is hoped will allow the NCR to offer further protection to consumers). With the court ruling in favour of the rates going ahead, MFSA members (and all creditors) now have to comply and consumers will only be charged according to the new rate structure.

SUMMIT V CAPITEC BANKSummit Financial Partners are taking there former client Capitec Bank to court over reckless lending allegations involving the bank’s former multiloan credit products. In court papers filed at the Stellenbosch Magistrates Court and the Cape Town High Court Summit have effectively claimed that Capitec Bank were disguising its multiloan credit products,

which were presented as a series of short term payday loans, but they feel were reckless credit granting. These loans given over a short term attract a (normal) initiation fee. The initiation fee is allowed for under the National Credit Act and in fact, all banks (and other credit providers) charge these fees. Such an initiation fee is there, in part, to help creditors cover the costs of doing an affordability assessment to check the consumer can actually afford to repay the loan. Summit CEO Clark Gardner claims that the proper checks are only done on the first application and that up to 11 more advances can be granted by simply answering 3 simple questions via an ATM with no human oversight. They feel this is not up to standard and may result in reckless credit granting. Reckless Credit is credit granted (1) without doing proper checks, (2) not abiding by a negative outcome to such affordability checks, (3) not providing the consumer with enough documentation explaining the T&Cs and costs or (4) giving a person credit they can’t actually afford. Summit are also of the opinion that many consumers are essentially getting trapped in a cycle of taking more of these Capitec loans to pay Capitec loans, though Capitec Bank point to the uptake in this product as indicative of where consumers in general stand economically and financially recently and not as being specific to their product. They feel confident in regard to their product. Summit say they have been aware of this matter for some time and have asked the Regulator (NCR) to get involved but have been forced to take the legal route as they have not had any joy from the Regulator. The NCR are indeed aware of the claims and say they are speaking to the Reserve Bank as the matter involves

NEWS CONTINUED

NEWS CONTINUED

a bank though they have not yet indicated if they are acting on any investigation into the product. For them to do so they require a specific complaint. They recently got shot down at the NCT for trying to take action against a credit provider without a specific complaint even though their investigation did reveal some irregularities. Since their had been no specific complaint the results of the investigation were seen as non admissible. The NCR have however indicated that the Summit application now represents such a complaint, which will allow them to take further action. Capitec Bank are set to vigorously defend the matter. Carl Fischer (Capitec Bank) says: “The loan in question is a one-month loan similar to what other banks provide and is structured to enable easier access for clients. The dispute is of a technical nature and the process of credit assessment and pricing are in accordance with the requirements of the National Credit Act. We strongly disagree with the allegations made regarding its legality… We believe statements and allegations have been made that are not correct, due to a technical misunderstanding of the product.“

GOVERNMENT PLANS TO STOP INSURERS PREYING ON POORIt is often times amazing to Debt Counsellors just how many insurance funeral plans a consumer might be paying for each month. In many cases insurers are actively targeting those of little means in their search for new clients. Now government is planning to crack down on this practice and offer a different alternative. Plans are afoot to prevent insurers from selling funeral cover to people on welfare. This will mean that no payments towards funeral plans

could happen from a consumers welfare grant or social grant. The government is talking of replacing private schemes with a state-run funeral plan. This is according to Ms. Bathabile Dlamini the Minister for Social Development. She recently told parliament that “The absence of a funeral benefit has opened our social grant beneficiaries to exploitation by private-insurance companies,” and that “The lack of government action to protect them has led to a very loud outcry by our beneficiaries and various civil-society organisations.”Big insurance firms have been fighting such changes at court since at present there are more people on welfare in SA than in the employment sector. Recently insurer, Lion of Africa won an interdict against a moratorium stopping all new deductions from child grants though other insurers put it into effect. Around 17 million people are currently on welfare. About 70% of grants are for children. At present, the law allows for a single deduction from a social grant for a funeral policy ( to a maximum of 10 % of the grant) but many report multiple deductions being made. This is now set to change. Of course, while government would be able to monitor these deductions before the money is paid over to the beneficiaries bank account they would not be able to do so afterwards.

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Did you know that you might not get paid out on your insurance claim simply because you are under debt review? It sounds shocking and discriminatory but it might be true in your case. Here is why and what to do about that.

YOUR INSURANCE MIGHT NOT PAY BECAUSE OF YOUR DEBT REVIEW

When a consumer takes out credit (for a vehicle for instance) the creditor requires that they carry a type of insurance called credit life insurance. This is insurance which will settle the debt should you die before being able to pay off the debt. Obviously you wouldn’t care any more but the creditor doesn’t want to be out of pocket just because you ruined everything and went and died. The creditor and consumer may also take insurance to cover the loss, damage or theft of the vehicle. This is all very logical and sounds like a good idea.

Most times, when you apply for the credit and are accepted, the creditor will offer you insurance right then and there. You do have the right to provide alternative cover yourself through another insurer but few people, if any, ever do so. It is much easier to simply sign and accept what they offer (even if not at a great rate or anything) so as not to upset them and maybe then somehow get turned away.

The good news is this then means you have cover and in most cases the insurance offered even covers you if you lose your income. So that’s also a bonus. You don’t always have to die or have your car stolen or damaged to benefit from that type of insurance. The insurance can be claimed against and will cover your monthly debt instalments for several months. Of course, most people are way too scared to ever tell the creditor they have lost their job and rather keep quiet than make use of this provision. Also should you get into an accident or have the car stolen you know that your debt will be settled so that you are not paying for a car you can’t drive any more.

Shockingly what many consumers don’t know is that they might be paying toward insurance religiously every month only to have their claim later denied because of having entered debt review. How can this be?

Well, some policies require (in one of the clauses in the document you signed with the insurer) that if a consumer’s ‘financial situation’ changes they have to inform the insurer. This is because when a consumer’s risk profile changes then the insurer likes to change the rates they charge to cover those risks.

Though you may not think of entering debt review as a bad thing (it isn’t. It’s a great way to responsibly deal with your debt) some insurers say that this is a significant change in your financial situation and they must be informed. Then if you need to claim and have not told them of the change they then refuse to pay out. Sadly some consumers have experienced this when they have a vehicle accident and the insurer refuses to pay out. This leaves them with no vehicle, no additional funds available to sort out the problem and in many cases leaves them unable to do work using their vehicle. Unable to work they are unable to service their debt and this creates a mountain of problems which their Debt Counsellor is not able to assist them with.

WHAT SHOULD YOU DO?The experts in debt review related insurance Meliorleaf say that not all policies have such a clause. You may need to go through (yawn) your policies to try spot this type of clause. If your policy has such a clause then you should in writing officially inform the insurer. Be prepared for some insurers who don’t understand debt review to then proceed to load your premiums and demand more each month. If they do, you may then need to shop around for a better insurer and product to replace your current insurer.

Companies like Meliorleaf (who offer insurance on motor vehicles) offer a service to look over your policies to spot such clauses. They can also offer you comparative quotes. Interestingly their product not only settles the debt with the credit provider if your car is written off but gets you a modest new set of wheels, meaning you don’t end up walking from client to client. Other debt review insurance specialists like ONE|SURE can replace your many credit life insurance policies which may be costing you a pretty penny with ones that offer better benefits to people under debt review, normally at much better rates (they know that consumers under debt review are lower risk consumers not higher risk).

So, rather than face the situation that you need to claim and get turned down for being under debt review you have two main choices (1) inform your insurers of your review or (2) replace your insurance with cover designed specifically for consumers under debt review which won’t repudiate your claim. Debt Counsellors should also discuss this with their clients.

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There is currently a net of tighter regulation and legislation closing around those who are taking advantage of vulnerable consumers. Now, while more regulation and more laws are not always the best way to attack a situation (as you can get swamped in laws that prevent a healthy economy) it definitely does assist where gross abuses have been become the industry norm.

NEW LAWS TO PROTECT CONSUMERS

The credit industry is one of those industries where consumers can get badly burnt if the companies they are dealing with are unscrupulous. thus it is one of the most legislated industries. Speak to anyone in the banking sector and they will tell you about the plethora of Acts and legislation which impact on them every day. Sometimes credit providers struggle to keep up with all the new laws or struggle to adjust their computer systems fast enough (like the recent issue with getting their computers to do affordability assessments correctly which lead to the DTI delaying the implementation of new requirements).

Recently government has been making a lot of moves to try protect consumers (who often have a low level of financial literacy) from abuse in a variety of areas. They have found that where there are already existing laws, these need to be bolstered by further regulation to provide iron clad clarity on what the law means. This we are in for a swath of new regulations and amendments to various Acts which will . Here are a few of the areas where parliament are focusing and recently received feedback at a Trade & Industry Portfolio Committee meeting:

PRESCRIBED DEBTWhen a credit provider does not make an effort to collect a debt for 3 years (they don’t go to court and get a judgment or make a payment plan with the consumer) this debt will most times ‘die’ or prescribe. This means that the credit provider cannot latter wake up and decide they want the money. They also cannot sell that debt to someone else for them to go and collect. The sale of debt to attorneys is an age old practice and these attorneys or collections firms will often try their luck and try to get consumers to pay for really old debts. This was despite the law

(the Prescription Act) which says this cannot happen. Well in the old wording of the Act it said consumers did not have to pay. This has now changed for the better. In the old wording of the Act it was possible to get people to pay money toward an old debt. Doing so didn’t make the debt alive again or make it so the person had to pay but if you were persuasive you could get people to give you some funds. Often this was done with threats (which couldn’t actually be acted on). This lead to a big change when the National Credit Act (NCA) came into effect and was amended. It is now illegal to try collect a prescribed debt. It is also illegal to sell a prescribed debt to someone else for them to try collect on. At present the Justice Department (working with the DTI) is preparing an amendment to the Prescription Act wording so that it will be clear in that Act that the collection and sale of prescribed debt is banned. In the past 3 years the number of matters being referred to the National Consumer Tribunal in regard to reckless credit (and other matters) has quadrupled. This also relates to their taking on more responsibilities (particularly in regard to reckless credit) when the NCA was amended. Recently the NCT have been making a huge effort to catch up with it’s workload while dealing with being drastically understaffed for the workload they are empowered to do. In fact, Parliament has been giving the NCR a hard time about matters they referred to the NCT since no big rulings and fines have been forthcoming recently. When pressured about it the NCR sort of threw the NCT under the bus and blamed their backlog. The NCT have set up special motion courts across the country to assist Debt Counsellors get their cases up to date and have had great success doing so.

EAO’S (“GARNISHEE ORDERS”)Garnishee orders became a swear word after Marikana and the violence that erupted there between cops and unhappy mine workers. Many of the workers on the mines had committed all their income and in some cases more than they earned to debt. When they didn’t repay that debt, credit providers went to court and got EAO’s or Garnishee orders against their salaries. This left many working all month and taking no funds home or able to send to their family elsewhere in the country. In the media coverage that followed it soon became obvious that little or no consideration was been given to how much was deducted from peoples salaries when EAOs were granted. In fact it became clear that most courts were just rubber stamping whatever Garnishee order came their way. It also became evident that some courts granted a lot of orders for people working on the other side of the country [ see below]. Now a draft Courts of Laws Amendment bill had been approved by cabinet, which will ask that magistrates (not clerks of the court) check to see if a proper affordability assessment was done before credit was granted (in any case where a credit provider wants an EAO). The court will also check to see how much the consumer can actually afford and not just grant whatever amount is asked for. This does seem to indicate that governments idea is to make EAOs harder to get but not to throw them out entirely as some had feared/hoped. At present courts across the country have placed a real stranglehold on EAO granting in the wave of negative public opinion about so called “Garnishee Orders“. Statistics show that judgments regarding debt have recently fallen by about 11.2% in recent months and there has been a 13% decrease in the number of summonses being issued.

JURISDICTIONThe other issue of courts across the country hearing matters where consumers are unable to go and defend themselves or later go have the order amended is also being tackled. Acting deputy director-general for Trade and Industry MacDonald Netshitenzhe. says that this abuse where creditors have been getting consumers to unwittingly give consent for their credit agreements to fall under a jurisdiction far from where they lived is going to be changed and there is once again draft legislation in this regard.

CREDIT LIFE INSURANCEAnother area which has received a lot of media attention and subsequent regulator attention has been the area of credit life insurance. This is insurance that consumers are required to take in case of their death. in such a case while they can no longer pay for their credit the insurance will cover the outstanding debt. Such credit life policies are offered mostly in-house by credit providers who quickly realised this was a cash cow they could milk with high premiums. In some cases research has shown that a credit provider might make 1/3rd of all their income through insurance offerings on credit products they offer. These policies often have many benefits such as paying your installment for a number of months if you lose your job etc. It has been shown though that consumers seldom know about or use the benefits offered by these policies despite the incredibly high premiums. According to Department of Trade and Industry director for credit law and policy Siphamandla Kumkani some credit providers have even charged as much as 50 for every R1000 of credit. This is way too high when companies such as ONE|SURE are able to charge 1/10th of the price and offer similar or better benefits (to consumers under debt review). Now new regulations are to be submitted to Finance Minister Pravin Gordhan which will limit how much people can charge for this type of insurance. This could now be somewhere between R2 and R4.50 per R1 000 of credit. This may seem like a very unfair reduction (and there is push back on this issue , of course) however it is a direct result of overcharging and abuses in this field that have lead to the lash back by government. It looks like creditors are going to have to look elsewhere for their profits. POSITIVE CHANGESThese new laws and regulations will come into effect over the next while and will once again change the playing field for credit providers who continue to struggle to keep up and still remain profitable. That said, these institutions have the means to try keep up as opposed to many troubled consumers. It is hoped that these new laws will reduce the rampant abuses by unscrupulous creditors some against consumers with limited financial savvy.

Credit Providers lend money to consumers and charge them interest on that money over time. This allows them to make a profit and in turn to lend money to other consumers.

MAXIMUM INTEREST RATES AS OF MAY 2016

MAXIMUM - THE NORMThough creditors do not have to push clients to pay the maximum allowable, they mostly all do so in an effort to maximize their profits. Seldom are everyday South African consumers able to effectively ‘shop around’ with creditors cutting their rates to draw in new clients. This phase of marketing may come in the future, when credit provider competition for clientele increases due to a reduced number of new consumers able to afford credit (due to more stringent affordability assessment requirements and less younger consumers able to enter the credit market due not being employed). For the present however it is almost an industry norm to max out the interest rates regardless of the consumers debt repayment history.

A while ago Micro Finance South Africa took the NCR to court (twice) in order to get them and the DTI to review the monthly service fees that creditors can charge (it was R50 Plus VAT / month). This prompted the NCR and DTI into researching and releasing draft regulations about new maximum allowable interest rates.

Though the proposal allowed for creditors to now charge and extra R10 a month for their service fees it did propose slashing the maximum allowable rates for unsecured credit (which is what MFSA’s clients all use). After consultation the new maximum rates were published in the government gazette and were due to come into effect in May 2016. As a result of the big cut to the maximum rates allowed on unsecured credit MFSA tried to go to court to stop the rates from becoming a reality. They fought and lost. With the failure of MFSA to get the courts to hold off on the implementation of the new changes to the maximum amount of interest that credit providers can charge, the industry needs to be aware of the changes and use them in their calculations. Consumers can also check their monthly statements from creditors to make sure they are not being over charged.

NEW RATES IN EFFECTNot only the end figures changed but the entire way the maximums are calculated has been altered in an effort, in part, to make things simpler for consumers to work out and understand. Though many of the figures may initially seem similar (not the unsecured credit though, that has taken quite a knock) the new maximum interest rates which credit providers can charge are now being calculated slightly differently from before. In the calculations below RR stands for Repo Rate. The Repo Rate is currently sitting at 7% (no change in May 2016) and it looks set to climb in the future as economic pressures continue to mount.

Type of Credit Agreement Maximum Allowed Interest RatesMortgage agreements RR + 12% per yearCredit facilities RR + 14% per yearUnsecured Credit transactions RR + 21% per yearDevelopmental Credit agreements (i.e. small business, low income housing)

RR + 27% per year

Short-term Loans (6 months or less) 5% per month on the first loan and 3% per month on subsequent loans within a calendar year.Since these loans must not go longer than 6 months it has a effective rate (1st loan) of 30%

All Other credit agreements RR + 17% per yearIncidental credit agreements(where it was not originally planned that the client wouldn’t pay for everything in one go but ends up paying back over time and hav-ing some interest charged)

2% per month(basically this has an effective maximum in-terest rate of 24%)

Though the credit industry and regulators for a long time denied any type of unsecured credit ‘bubble’ there has been a big move in these new calculations to reduce the profitability of this section of the market. This may follow after seeing the crisis experienced by such organisations as the former African Bank (not to be confused with the current African Bank) where consumers defaulted in mass on short term credit. Combined with stricter affordability assessment requirements the unsecured credit market is undergoing large changes and is no longer the cash cow it was once seen as. Another significant change is also with regard to short term loans (such as pay day loans) which see a reduction in maximum rates for follow up loans with in a short time period. The first loan may be at 5% but follow up loans (which are very common) will be at 3%/month. It is hoped this will protect consumers from becoming trapped in a cycle of loans to pay loans.

R10s WORTH OF TROUBLE BREWINGThe new rates are in effect and Debt Counsellors, Credit Providers and consumers need to take these into account. One area of concern which has come up in, in regard to end balance differences which may arise from accounts already loaded onto debt restructuring software systems through the PDAs (at R50/month) vs credit provider systems that will now be using R60/month going forward. Since Debt Counsellors are probably not able to ask their clients to find an additional R10 per month, per account to add to their debt repayments, this means that the PDA statement and calculation systems will slowly be opening a gap by R10 plus interest every month on every account when compared to the creditors systems... which in the long term will lead to a large end balance difference problems.

telephone 079 888 7200email [email protected]

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The Constitutional Court very recently ruled on the matter of whether a Judgment and warrant against a consumer’s asset meant that the consumer was not able to revive the credit agreement by paying up arrears before the asset was sold. The particular case involved Ms Nkata who missed a bunch of payments on her bond and First Rand Bank. Ms Nkata was slow about responding to the banks Section 129 letter demanding that she catch up payments on the account. She only did so once the bank had already got a judgment against her and were planning to sell of the house on auction.

CONSTITUTIONAL COURT RULING ON SECT 129(3) STILL TO BE FULLY ADOPTED

With the help of SERI (Social-Economic Rights Institute) Ms Nkata was able to argue the matter at Constitutional Court. The Constitutional Court ruling showed that consumers can’t realistically be expected to know the legal costs before being informed of them by creditors and thus can’t be expected to pay these before the account is revived. This makes sense as the credit provider normally will only inform consumers of these costs much later. Credit providers have access to the account balance daily and can see when a catch up payments on arrears is made. These were some of the reasons why the ruling went in the favour of Ms Nkata. This case shows that a judgment is not executed when a ‘warrant of execution’ is issued but only once an asset is actually sold. It also makes clear that this process of reviving the account cannot be denied or opposed by a credit provider simply because they do not want it to and that it happens automatically as long as the actual sale has not occurred.

For credit providers who are making insurance claims in regard to assets they have judgments against (but have not yet sold) this may prove to be a real spanner in the works should they claim too early and the account be reinstated. In such a case they would have to recompense the consumer or get them their vehicle back (which would prove very tricky and costly) never mind the whole backend insurance story which they would have to sort out.

“OUR HANDS ARE TIED”Though this is a huge victory for consumers and gives clarity on the NCA Section 129 process, consumers who are in a similar position to Ms Nkata and who have now been pointing credit providers to this new judgment have been finding that some credit providers (and their attorneys) are not happy to abide by the new ruling. This is probably as it effects who gets paid what. It may also simply be that the ruling is so new that many have not heard about it or had their mandates from their clients adjusted to allow for this new clarification of the law. Some credit providers (collection agents) have predictably been telling consumers that their hands are tied as the judgment has been granted despite the clear ruling in this case. It seems that for a while consumers might have to follow Ms Nkata’s example and fight in court for their rights in this regard. In such cases they can rely on this important legal precedent in their court papers.

DEBT REVIEW AWARDS

3

The Annual Debt Review Awards process is underway. This year a peer review process is being used. This means that Debt Counsellors across the country are getting to help share their experiences with various credit providers and indicate their strengths and weaknesses (of their debt review process). At the same time Credit Providers are getting to do the same about Debt Counsellors.

The peer review is being done online making it easy for all to participate no matter where they are in the country. Once registrants sign up and have their email address and NCR register numbers confirmed they begin to get links to the various categories of the peer review. Registrants have been signing up at www.debtreviewawards.co.za the official Debt Review Awards website or via invitation from their associations.

COMMONLY ASKED QUESTIONS:

Who can Participate?All NCR registrants can participate. So, if you don’t have your NCRDC or CP number yet…sorry. You will have to wait for next year. At this time the public (customers) will not get to vote for their favourite service providers. That process (The People’s Choice) is a separate event that will occur at a different time of the year.

Can more than one Debt Counsellor within a firm participate?Yes, all NCR register Debt Counsellors can participate no matter where they work. Each Debt Counsellors personal experience is valuable and will help contribute to the overall results. While Credit Providers are registered as an company and thus each credit providers debt review department will only get a single chance to participate, Debt Counsellors are registered individually and thus all get a chance to participate.

UPDATE

Will that mean that individual Debt Counsellors at a firm might be considered (by the credit providers) rather than the firm or brand?No, Credit Providers will be looking at debt counselling firms as a whole rather than specific team members. That is just easier for them to track and comment on. Often times debt Counsellors move from firm to firm during the year as they take on employment with new companies. So, larger DC firms who have multiple DCs do not have to worry about that. In many cases where a Debt Counsellor runs a boutique smaller operation this will effectively mean that the credit providers are rating them as the only DC and their firm at the same time.

Some DCs ask: Will my smaller, personalised operation be compared to the biggest debt counselling firms taking on hundreds of clients each month?No, Debt Counsellors are considered in 3 size categories: Boutique, Large and National. This allows those of similar size and capacity to be compared to one another and results in a more fair evaluation of each part of the industry.

If you have not yet signed up and have not yet be part of the peer review we urge you to do so. Help reward those firms who are performing well with good ratings. The Debt Review Awards is all about recognising the hard work of role players in the industry in making debt review a success. Have your say.

The results of the Peer Review Process will be announced at the Debt Review Awards Gala in Cape Town on the 25th of June 2016. You can also check online on social media for live updates from the event. Debtfree Magazine will also run a round up special edition in regard to the awards and what happened there.

WWW.DEBTREVIEWAWARDS.CO.ZA

DEBT COUNSELLING COMMUNITY SUPPORT

DEBT COUNSELLING COMMUNITY SUPPORT

DCCS are currently busy with the Winter Warmer project and are currently in need of the following:

1. Warm Cloths -Money contribution or Voucher2. Blankets - Money contribution or Voucher

3. Food - Money contribution or Voucher4. Toiletries - Money contribution or Voucher

The reason why money or a voucher is better/easier is that the families that DCCS are helping, are all over South Africa.

How a deserving family is chosen:· Any debt counsellor (or credit provider) who wants to get involved in this project will nominate a vulnerable debt review family that really needs a hamper and let DCCS know

about the consumers situation. DCCS will then do everything they can to make sure the family receives the Winter Warmer Hamper.

Why?· For many DCs times are tough and budgets are tight as we all know but some of these

families really need our help and without it could fall out of the process back into dire financial ruin. Our small donations can make a world of a difference to an entire family.

It only takes ONE default to derail the client from the process and it can take ONE hamper to make all the difference

If you want to help or get involved in this project, you can contact: [email protected]

COLLECTION METHODS CAN MAKE OR BREAK

YOUR BUSINESS

IN A NUTSHELL

This ruling directly impacts the collection success rates in the industry, particularly for debt counselling firms and Payment Distribution Agencies (PDAs) who have a large number of consumers paying via debit order. Authenticated Early Debit Orders (AEDO) have proven to have the highest success rate of all debit order types. Not only are AEDO payments prioritised but the payment instruction is authenticated using the Payers Bank card and PIN. The cost of AEDO transactions is normally in the region of R25 to R30. Given that PDA fees are now capped between R5-R15 depending on the repayment amounts, this is not a viable collection method.

Ordinary debit orders and Non-Authenticated Early Debit Orders (NAEDO) are comparatively cheaper however their biggest weakness as a collection method is that consumers have the option to dispute them.

Given the 5-day limit for PDAs to distribute debt review payments, the impact of fraud and the ability for consumers to dispute debit orders places the debt review industry at risk from potential reversals.

According to an article in Fin24, 20, Nov 2015 on Debit Order Fraud, Walter Volker CEO of the Payments Association of South Africa (PASA), confirmed that South African banks collectively process about 56 million debit orders a month. However, about 800 000 debits are disputed every month at an inter-bank level.

Volker elaborates that total disputes at an inter-bank level are currently around 0.5% for debit orders, close to 200 000 per month; and around 4% to 6% for early debit orders at 600 000 per month.

The National Payments Distribution Agency (NPDA) has found that debit orders reversals are at their highest within the first 5 to 7 days, with a 2.95% and 1.9% reversal rate respectively. After 14 days the reversal percentage drops to 0.94%.

It is critical for debt counsellors and PDAs to use the most reliable collection methods to sustain the long-term viability and growth of their business. Salary deductions and stop orders are by far the best collection methods for debt repayments.

According to the recent amendments by the Department of Trade and Industry (DTI) and the National Credit Regulator (NCR), debt counselling payments now need to be distributed within a 5-day limit.

IN A NUTSHELL is brought you by the DCM Business Partnership Programme™, designed to support debt counsellors and consumers during the debt review process, in collaboration with the National Payment Distribution Agency (NPDA). For help, contact the NPDA on 0861 628 628.

The NPDA was recognised as the industry winner for PAYMENT DISTRIBUTION and Care Premier as the industry winner for DEBT COUNSELLING SOFTWARE at the Debt Review Awards 2015.

If you have suggestions for topics that you would like covered in future, please email [email protected]

It is possible to move existing consumers on debit orders to stop orders successfully. An NPDA medium sized debt counselling client recently converted over 80% of their consumers on debit orders to stop orders. According to the NPDA stop orders have a 92% collection rate.

It is key that debt counsellors pay attention to sustainable collection mechanisms. For example, a debt counsellor that signs up five new clients per month, will at the end of 12 months, provided there has been no churn, increase his or her business revenue by 50% with no additional work.

The DCM Partnership Programmes introduced in conjunction with the NPDA supports Debt Counsellors by providing the right mix of tools that address key business drivers, such as the conversion rate of new clients, and the access to proven collection methods. The NPDA through its association with Debt Control Management (DCM) can offer salary deductions to close to 500 000 employees.

By using proven collection methods, like salary deductions and stop orders, debt counsellors can lower their risk of payment repudiation while maximising their revenue potential with no additional cost or effort.

CAPE LAW SOCIETY LEAD CHARGE AGAINST FEE SHARINGThe debt counselling process is a professional service which is offered to consumers for modest professional fees. In addition to the fees that Debt Counsellors are entitled to, the process also goes to court and so consumers now cover legal fees for their applications. These legal fees are meant to cover the cost of having attorneys fight for consumers, in regard to their debt review.

LEGAL FEESThe industry ‘norm’ for fees and how fees are taken is built, in part, off old DCASA guidelines and more recently, the NCR’s approved task team guideline. The guideline says that in the second month of a person’s debt review, some unspecified amount of money is taken toward legal fees. The DTI and NCR have never said how much this fee can be, as this would fall outside the ambits of the NCA. The legal fraternity don’t like outsiders dictating what they can charge for their services.

At present there is also no actual clarity on what exactly the “legal fee” covers. This is in part because they are not mentioned in the NCA. We simply know these fees exist and that the NCR approve of such a fee. Does the fee cover only the drafting of papers and debt restructuring application to court or the NCT? Does the fee cover any rescission of debt restructuring court order or a battle over possible reckless credit? Does this fee cover possible defence of legal action by creditors who try to circumvent the debt review process or take legal action after “terminating”? The answers are unclear. In many cases the Debt Counsellor themselves may not know what exactly the legal fee will be allocated towards, never mind the consumer. Thus the entire subject is one that often is glossed over with consumers to avoid stressing or confusing them.

The matter is legitimately quite convoluted. As you can imagine, different attorneys charge different rates and some debt restructuring matters are easier to sort out than others. Some debt review matters are sorted out in a single appearance at court because all the creditors are happy, while others require 10 or more appearances, sometimes over years. Some matters are handled by a single firm of attorneys and others through correspondent attorneys across the country. These are just some of the reasons why it is very difficult to know, in advance, what the costs will be. Rather many Debt Counsellors tell the consumer that these will be the rough costs and that a fee will be taken from the second payment toward the estimated costs.

A matter which has however come to the fore, of late, is that of sharing the legal fees or ‘fee sharing”. This has been discussed at NCR workshops and online in some detail.

FEE SHARING - WHAT IS IT?Fee sharing is when two parties (eg. the Debt Counsellor and Attorney) share the legal fee that has been paid. Law Societies are very vigilant in making sure that people who are not admitted attorneys or Advocates don’t charge ‘legal fees’. This helps protect consumers, as well as their members.

Are their concerns over fee sharing unwarranted? Hardly. It seems that some Debt Counsellors have been regularly taking a big amount for legal fees from the consumer (paid over to the attorneys) and then they are getting some funds back from the attorney on every single matter. They then keep all these funds for themselves. This is the case even if the matter is sorted out

with little court work or few appearances. The reasoning is that they ( the Debt Counsellor) are doing a lot of the legal work. Since the Debt Counsellor is the applicant in a debt restructuring court application it is perfectly legitimate for them to draft the papers. Charging for this service however is another story. In many cases the Debt Counselling firm also arrange (at their own expense) for the consumer to receive and sign the needed court papers. They feel the need to cover these costs in time and expense and thus ask for a portion of the legal fee.

It has been said that some firms have come to see this fee some sort of “second payment” from the consumer and have been relying on this as additional income to run their business. Admittedly there is little profit in running a debt counselling business based on the current fee structure. There have been some cases where consumers are asked to pay much more than is actually required to get their court papers drawn up and their debt restructuring court order granted. Many firms take the maximum of whatever they can get in the second month or even charge consumers for more than a month.

Where consumers matters are referred to the NCT (which cost a lot less and where the NCR has told Debt Counsellors what can be charged including a ‘legal fee’) consumers are not being ‘refunded’ the excess amount paid in legal fees.

OFFSET -WHAT IS IT?Many Debt Counselling firms pool the funds coming from all their clients into a big pile and use whatever portion of the funds are required for legal work at any particular time. They do not specifically allocate funds from one consumer for that same consumer only. This means that in some cases where a legal matter goes quickly and costs little the excess funds get used toward another consumers long hard fight for a court order or defence of additional legal action from a credit provider. Thus the surplus of one off sets the deficit of another.

Recently the Cape Law Society has been alerted to this practice which they feel their members cannot be part of. They say that some of their members have not been given work by Debt Counsellors if they will not pay part of the legal fee back to the debt counselling firm. They are now leading the charge against this practice and have been warning members not to get involved in such matters. They sent out correspondence to members saying such.

Reference is made to the disastrous presentation made at the NCR’s W Cape Workshop in regard to this topic. At the workshop, the Cape Law Society representatives were very passionate and even threatening in their presentation, warning all not to get involved in such a practice or face their wrath.

Part of the problem is that attorneys do not offer consumers contracts, as required by the Consumer Protection Act. They seem to feel entirely above the CPA. Such contracts would

clearly indicate what the estimated costs will be and what services will and won’t be covered by the consumers payments. The lack of such contracts means that Attorneys can just add, remove or adjust services and fees as they go along with little accountability. Attorneys offer neither contracts to the consumer or the Debt Counsellor. This leaves a lot up in the air and perpetuates the problem.

NCR FINALLY REVIEWING FEESFor many years debt counselling associations have been calling on the NCR to review the old and outdated fee structure. The process now has many features never imagined before, costs have increased due to inflation and the process is a lot more complicated at the back end than was ever imagined. Finally, after a false start last year, the NCR have called for a tender for a service provider to review the entire debt review fee structure. This follows after some credit providers legal representatives recently argued in court that a Debt Counsellor had charged fees (not based on any law or regulation) which had caused the consumers accounts to go into default. The Debt Counsellor argued that the NCR had issued guidelines on the subject. This did not move the court which was only interested in the law and regulations. Seeing as there are no laws or regulations about fees in the NCA*, the court ruled for the credit providers and made the Debt Counsellor (not consumer or NCR) pay a crippling amount in legal fees for all parties. It was a huge blow against the NCR’s issued non-binding opinion guidelines. This case (and others) highlights the need for something official.

Whether such a new fee structure will carry any legal weight and be released as regulation or whether these fees will mention the legal side of things remains to be seen. What is clear is that Attorneys don’t work for fee and this needs to be addressed. Will the fee review bring about the hoped for increase in the amount Debt Counsellors can charge for the various services they offer? You may think this would obviously happen. Research (for instance by DCASA) shows that the process is now almost twice as time consuming as when the previous fee guideline was worked out years ago. Other parts of the industry however have hoped for the same only to meet with disappointment. Some have seen rates they can charge slashed, caps placed on fees that were previously allowed come in and businesses driven into unprofitability by unrealistic timeline requirements. The industry now holds it breath waiting to see what will and won’t be included. It is likely however that since the Cape Law Society and NCR have been working together on this matter that fee sharing may somehow get a mention.

* there were other factors involved in the decision to make the DC pay the legal costs but this was one of them.

UPCOMING REGIONAL MEETING DATES:

FREE STATE Friday 1 July 2016

KZN Friday 26 August 2016

WESTERN CAPE Tuesday 26th July 2016

GAUTENG Wednesday 26th October

DCASA ANNUAL CONFERENCEThe Annual Conference will be held in Gauteng on the 17th of August

DEBT COUNSELLORS ASSOCIATIONS ANNOUNCEMENT BOARD

Securitisation continues with the blessing of the courts

http://www.acts.co.za/news/blog/2016/03/securitisation-and-debt-markets-an-industry-of-lies-and-deception

www.newera.org.za

www.bdcf.co.za

We wish our members all the best in the Debt Review Awards process which is currently underway.

The NCR is beginning a fee structure review. Join our discussion on this topic on our members only Facebook page.

www.allprodc.org

At our recent AGM, in KZN, our new NEC was elected. We wish them all the best for the coming year. President: Keystone SonoDeputy President: Nitesh MohanlalSecretary General: Ettienne HumanDeputy Secretary General: Musa MlangeniTreasurer: Romie GovenderDeputy Treasurer: Marilyn WilliamsGauteng Chairperson: Portia RangongoWestern Cape Chairperson: Kim ArmfiledKZN Chairperson: Edwin DunnHead of Fundraising: Ron RiesCoordinator: Octavia HlatshwayoAdministrator: Thandiwe Dlamini

www.dcasa.co.za

APRIL

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

DEBT REVIEW FEE REVIEWThe National Credit Regulator has put out to tender for a service provider to review the current debt counselling fee structure. At present there is no mention in the NCA or Regulations what Debt Counsellors can charge other than R50. This is causing big problems in the industry and is negatively impacting on some of our members who have even had costs orders issued against them when following the NCR’s guidelines on this matter. We urge our members to discuss this matter on our members Facebook page. Please let us know what services you are offering consumers, how new aspects of the process are impacting on you, how many hours does it take to do the various debt review functions for each consumer and what you think should be charged for these services. We would like to be ready to share this information with the NCR’s service provider when they begin the process. The more information we can give them the better. We are of the opinion that there is a big misconception among some that the process is easy, fast and not costly for the Debt Counsellor. Somehow some people think that we are making big profits off financially troubled consumers. Obviously this is not the case and we need to provide information on this topic to clearly show this to the Regulator. Please log in and join the conversation. We need to urge the NCR and DTI to publish these adjusted fees in the government gazette so as to protect Debt Counsellors.

DCRS AND PDA FEESMembers should be aware that with the PDAs now being registered the allowed PDA fee structure has changed. At present it does not seem as if DCRS is allowing for this change and this effects proposals and repayment plans. For those members who use the system please take note.

MONTHLY ACCOUNT SERVICE FEESMembers should also be aware that the new increase in the maximum allowed monthly service fees (Credit Providers can charge less if they want or keep the fees the same as they have been) may now be applied to our clients “non debt review adjusted” statements. These fees might also be applied to those consumers under debt review where credit providers refuse to remove service fees. This will then mean that an additional R10 is working it’s way onto the consumers statement and interest calculations each month. This is going to start to snowball and will cause additional end balance difference issues.

DEBT REVIEW AWARDSWe wish all our members the best in the current Debt Review Awards Peer Review process. Members are reminded they can sign up to participate in the peer review at www.debtreviewawards.co.za

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DEBT COUNSELLORS

LIMPOPO NORTH WEST EASTERN CAPE

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Armani Debt CounsellingTake the First Step

to Financial Freedom Tania Dekker

Tel: 011 849 3654 / 7659www.armanigroup.co.za

Credit MattersSouth Africa’s Leading

Debt Counsellors14th Floor, The Pinnacle

Cnr Strand & Burg StCape Town

Tel: 086 111 6197Fax: 021 425 6292

[email protected]

Dynamix Debt Counselling TLCAlida Christie NCRDC2324

Office 1, 34 Beefwoodstreet, Vanderbijlpark, 1911

Tel: 079 520 4369Tel: 016 100 8020

[email protected]

National Debt AdvisorsFighting For Consumer Justice

Tel: 021 007 1688 www.nationaldebtadvisors.co.za

GAUTENG




Tel: 086 111 6197Fax: 021 425 6292

[email protected]

Dynamix Debt Counselling TLCAlida Christie NCRDC2324

Office 1, 34 Beefwoodstreet, Vanderbijlpark, 1911

Tel: 079 520 4369Tel: 016 100 8020

[email protected]

Specialist Debt Management CentreBeverley Ludick, NCRDC948

PretoriaTel: 012 377-3557

Email: [email protected]: [email protected]

www.obligco.co.za Tel: 0861 123 644Email: [email protected]

NCRDC197Tel: 011 660 9970Fax: 086 540 5017

KRUGERSDORPe-mail: [email protected]

www.nvdmdc.co.za

All Debt SolutionsFast tracking your financial freedomTel: 0861 255 3328 / 021-557 9981

Email: [email protected]://www.facebook.com/

alldebtsolutions

Creators In Financial Wellbeing

NCRDC677You Are Not Alone

We’ll handle your creditors so you don’t have to!

1 Dingler Street, Rynfield, Benoni0861 10 11 00

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Tel: 086 111 6197Fax: 021 425 6292

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FREE STATE




Tel: 086 111 6197Fax: 021 425 6292

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Tel: 086 111 6197Fax: 021 425 6292

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LIMPOPO

SMS Salary Management ServicesAnnerien de Jager

Registered Debt Counsellor NCRDC0075

015 307 [email protected]







Tel: 086 111 6197Fax: 021 425 6292

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EASTERN CAPE

Debt Counselling Group SAAffordable Assistance with offices across

the EASTERN CAPE.Casper Francois le Grange

NCRDC 1560 / CALL: 086 100 1047Offices:

East London: Shop 7, New Colonnade Building, Devereux Av, Vincent

Port Elizabeth: Room 302, Pier 14, 444 Goven Mbeki Av, North End

Queenstown: Office 107, Nedbank Building, 89 Cathcart Road

King Williams Town: Office 4, 49 Eales Street

E-mail: [email protected]

www.facebook.com/dcg.southafrica







Tel: 086 111 6197Fax: 021 425 6292

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DON’T WORK WITH AN OUT DATED VERSION OF THE ACT

We are happy to announce that the Amended National Credit Act bookletis now available via our shop.

Get the latest version for only R250.00

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WESTERN CAPE

CONSOLIDEBTHeidie Knorr NCRDC209

Paarl, Worcester, Wellington, Ceres, Piketberg, Clanwilliam, VredendalTel: 021 863 2754 / 082 380 4401

[email protected]

Encouraging Freedom, Creating WealthEtienne Pieterse (NCRDC 2210)

Tel. (021) [email protected]

www.financialfreedomsolutions.co.za






Tel: 086 111 6197Fax: 021 425 6292

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ISISEKO DEBT HELPGet Your Life back on track

TEL: 087 230 0223FAX: 086 551 1649

EMAIL: [email protected]: www.isiseko.co.za

DEBT REVIEW AND SUPPORT CENTRE

Annienne Nel NCRDC2452Kairo’s House, 22 Fairfield Southstreet, Parow, 7550

Office: 021 930 5791Cell: 082 641 2328Fax: 086 563 3264

e-mail: [email protected]

All Debt SolutionsFast tracking your financial freedomTel: 0861 255 3328 / 021-557 9981

Email: [email protected]://www.facebook.com/

alldebtsolutions

NCRDC1142 No 2 Golden Isle Building

281 Durban Road, Oakdale,Bellville, 7535


www.zerodebt.co.za

Debt BudgetOne Monthly Payment For All Your Debt

Bruce Leslie BorezNCRDC1643

52 Church Street, “NBS Building”,Wynberg

Tel: 021 824 8885www.debtbudget.co.za




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& Solution CentreNCRDC2452

WESTERN CAPE


don’t be a twit

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SUPPORT SERVICES

lana Van Herwaarde,DC Operation Centre (PTY)

Tel: 0867227405 Email: [email protected]

DEBT086 126 6562

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Detect ID Theft or possible ID Fraud

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Credit Report App

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Access Your Credit Bureau Report Instantly on Your Phone

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LEGAL

Liddles & Associates“It always seems impossible until it

is done” N. Mandela(T) 021 930 5790(F) 0866070940

(E) [email protected]

RM Brown and Associates 16th Floor, The Pinnacle


Tel: 021 202 1111, f: 021 425 0875 Email: [email protected]

Steyn Coetzee Attorneys / Prokureurs

Adri de Bruyn11 Market Street / Markstraat 11,

Paarl, 7646Tel: 021 872 1968Fax: 021 872 2678

[email protected]

CREDIT BUREAUSCOMING SOON

Kim ArmfieldAttorney & Family Law Mediator Address: Unit 1B, FinansHuis, 7

Voortrekker Road, BellvilleTel: 021 949 1758 / 021 945 2526

Office cell: 084 8588 [email protected]

Your Debt Counselling Attorneys

Johannesburg | Cape Town

Andre Van Zyl021 494 4862

[email protected]

www.bassonvanzyl.com

PAYMENT DISTRIBUTION AGENCIES

DC Partner044 873 4530

Hyphen PDA011 303 0060

NPDA0861 628 628

NPDA0861 628 628

Telephone: 031 251 4150

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

[email protected]

Proposals / Revised Proposals / Consents / Related Queries

[email protected]

Notice of Service / Court Applications [email protected] Balances / Settlements / General Queries [email protected] 86(10) Letters and All Related Queries [email protected]

ESCELATION CONTACT DETAILS*

Complaints / Service Delivery / Management [email protected]@consumerfriend.co.za

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Proposals / Revised Proposals / Consents / Related Queries

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*Please do not CC multiple email addresses.

Fax: 031 251 4252

CAPITEC CONTACT DETAILS

Form 17’s [email protected] [email protected] documents [email protected] Queries [email protected] Requests / Cancellation of Debit Orders

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Complaints [email protected] Certificates coming soonSharecall Contact Number 086 066 7783 - Select Option 2

ESCALATION PROCESSCOMING 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*: [email protected]

Debt Review Service requests: [email protected] 5 days

Debt Review payment queries: [email protected] 7 days

Debt Review administrative requests**: [email protected] 5 days

Debt Review complaints and escalations: [email protected] 5 days

Reckless Lending Allegations [email protected]

*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 REVIEW ENTRY POINTS

ABSA TASK SPECIFIC DEBT REVIEW ENTRY POINTS

Form 17.1 [email protected]

Debit Order Cancellations [email protected]

Proposals [email protected]

Exits from Debt Review [email protected]

All Court Documents [email protected]

DC Switches [email protected]

Termination Queries [email protected]

Queries [email protected]

Escalated Queries [email protected]

Call Centre 0861 222 272

DC Query Process

www.nedbank.co.za

DC Query Process

AFRICAN BANK CONTACT DETAILS 011 256 9323

[email protected]

ESCALATION PROCESS

COMING SOON