Debtfree DIGI April 2015 by Debtfree Magazine

South Africaâ&#x20AC;&#x2122;s debt counselling magazine

April 2015 www.debtfreedigi.co.za

WHAT IS DEBT REVIEW?

Debtfree asked Debt Counsellor Annerien de Jager of SMS DC Limpopo to explain the debt review process. Debt review is a process in terms of the National Credit Act for over indebted consumers. A debt Counsellor is someone who is registered with the NCR and who assists consumers who are experiencing debt-related problems and are having difficulty making their current monthly payment to creditors by providing them with budget advice, support and mediation with their credit providers. The heavy burden of debt is a reality and more than 70% of households are affected by debt stress. When you visit a debt Counsellor’s office, they will take a look at your income. Then we deduct your necessary expenses like groceries, school fees, transport etc. The money that is left is what we offer to your creditors as a reduced instalment.

By agreement you can often enjoy reduced the interest rates and monthly fees as well. When you apply for Debt Counselling you protect yourself. No one can reposes your assets provided you pay your reduce affordable monthly instalments. Although you won’t be able to make more debt, you won’t have to, because you will have enough money left at the end of the month. The harassing phone calls from the creditors will stop, they will communicate with your Debt Counsellor. Once you have settled all your debt obligations we issue you with a clearance certificate and clear your credit record. You will regain financial control over your money.

CreDit ProteCtion – Debt review Applied to go under debt review? Why not insure all your accounts on the One Credit Protection? we will contribute towards your accounts in the event of the following: Death – we settle the account temporary Disability – we pay the Debt Review payment for 6 months Permanent Disability – we settle the account Critical illness – we settle the account retrenchment – we pay the Debt Review payment for up to 9 months

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CREDIT PROTECTION – DEBT REVIEW Applied to go under debt review? SinGLe Joint Why not insure all your accounts on the One Credit Protection?

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ONE Financial ONE Services Holdings (Pty) Limited Reg Reg no: no: 1998/005199/07 Financial Services Holdings (Pty) Limited 1998/005199/07 is a juristic representative One Commercial Motor and Liability (Pty)(Pty) Ltd.Ltd. FSP: is a juristic of: representative of: One Commercial Motor and Liability FSP:8783 8783 by Absa Insurance Risk Management Services Ltd. Ltd. UnderwrittenUnderwritten by Absa Insurance Risk Management Services A Division of

STEYN COETZEE

PROFESSIONAL DEBT COUNSELLING ATTORNEYS

TEL: 021 872 1968 FAX: 021 872 2678

11 MARKET STREET PAARL

adri@steyncoetzee.co.za www.steyncoetzee.co.za

CONTENTS EDITORS NOTE

NEWS

JOB INTERVIEWS & YOUR CREDIT BUREAU REPORT

DEBT REVIEW AWARDS PUBLIC VOTING

SERVICE DIRECTORY

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• Individual, dedicated business bank account per Debt Counsellor • National Representation - regular office visits by skilled, trained agents • 24 hour access to system, including distributions data - from any PC, cell phone or tablet with internet access • Dedicated account managers for EACH Debt Counsellor Gerhard Dyzel gerhard@dcpartner.co.za 082 828 7595 / 044 873 4532 (ext 110) Yolandi Meyer pda25@dcpartner.co.za 082 338 2680 / 012 348 7624 www.dcpartner.co.za

EDITOR’S NOTE As summer begins to fade, the colder weather of autumn starts to make occasional appearances leaving us with glimpses of what is to come. It is almost time to dig in the back of the cupboard for those jerseys and scarves.

for helping again this year. That includes the Debtfree Team. Thanks guys. You can read all the latest about the Annual Debt Review Awards in this month’s issue.

We feature a lot of industry news and also get With rolling power outages and increasing to interview a Debt Counsellor about what it fuels prices ahead it looks to be a tough few takes to run a Debt Counselling business that months ahead. As my friend Ned says:” Winter is growing daily. We have information for Debt is coming”. It has been weeks since the Counsellors from the various associations. National Credit Amendment Act came into effect and the world has not stopped turning. While under debt review you may occasionally It seems that the industry is adjusting to the have glimpses of your debt free future. Rather new legislation and regulations. We consider than a dark and cold place it is a warm and some more of the ramifications for consumers wonderful future that you should have clearly in this months magazine and see how this is in mind in order to stay motivated. Remember changing the way credit providers go about to pay each month and keep a finger on the granting credit and who gets to look at your pulse. Soon you will be debt free. credit bureau report. It is always an exciting time for us at Debtfree when the Debt Review Awards begins to come together. This month the Debtfree team (as organisers) have been helping to gather info for the Panels to look at (no, we don’t actually sit on any of the panels), getting people to sign all sorts of documents, sitting with the auditors, booking venues and arranging speakers and a million other things. We have had overwhelming support again from both the industry and from contributors, sponsors and individuals offering time and energy to assist us. We really want to thank everyone

ADCAP Taking On 2015 with Dedication to Service Excellence With 2015 in full swing it’s a great time to take a step back and see whether you, as a debt counsellor, are you on track with your 2015 objectives. Are you navigating with ease through the complexities of the debt review process? Or does it all seem a bit overwhelming? Trying to navigate through the administrative and legal processes of each client by yourself could compromise your promise of service excellence. A promise we at ADCAP understand. We know that you’re devoted to giving each client and in turn their family - a much needed second chance in life. This year ADCAP is once again dedicated to assist. Specifically, to assist you as a debt counsellor achieve service excellence, by providing service excellence to you. Our unique system and years of experience has made ADCAP a trusted specialist in relieving administrative and legal burdens associated with the debt review process. Choosing ADCAP as your partner will give you a unique advantage that will help you deliver on your promise of service excellence. ADCAP streamlines the debt review process, from the application phase to after-care, through the following: A Unique in-House Software System Designed to manage debt review operations, our system not only gives you (and your client) access to their progress 24/7, but it’s also linked to our in-house legal team. Meaning that you’ll be first to know of any changes in court verdicts or the consumer law. Well-Established Creditor Relationships With ADCAP’s favourable track record with creditors we can successfully negotiate payment plans. Plus, we have a unique and effective system to address creditor terminations. The ADCAP Support (Dream)Team Part of ADCAP’s pride and joy is our relationship managers. These specialists offer support and guidance to you and your client throughout the process. The ADCAP team also: Provides after-care services as required by NCA; Provides nationwide legal support; Takes care of NCR/DCASA monitoring, inquiries and complains on your behalf; Submits quarterly statistical reports and annual reviews. We believe that this is your year. So make sure that you have, and keep, the advantage of service excellence. Choose to partner with ADCAP for efficient administrative and legal support. To find out more please feel free to visit our website at www.adcap.co.za or contact us directly at info@ adcap.co.za / 086 186 7868. We look forward to assisting you achieve service excellence.

INDUSTRY

CONSUMER

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

WONGA HAVE A NEW CEO

Online payday lender, Wonga.com South Africa has appointed furniture retailer Lewis Group’s former credit risk director, Brett van Aswegen as their new CEO. Mr. Van Aswegen will be coming in to replace Wonga South Africa CEO, Kevin Hurwitz following his hush, hush resignation in October last year. His departure followed on after the exit of South African cofounders, Errol Damelin and Jonty Hurwitz. Wonga recently came under fire with UK and SA regulators. In the UK, the Financial Conduct Authority (FCA) ordered Wonga to write off loans worth £220 million (around R3.9 billion) which were given to around 375 000 borrowers, as they had been granted recklessly. In July last year, South Africa’s National Credit Regulator (NCR) found, among other problems, Wonga had not been obtaining proof of consumers’ income and living expenses before granting loans. It ordered Wonga to rescind judgments taken against consumers in these matters. Mr. Van Aswegen began his career at Edcon’s credit division in 1994. He later joined Standard Bank retail banking for a number of years. Then in 1999, he joined the Lewis Group, where he remained for over 12 years before a recent stint as operations director at HomeChoice. Mr. Van Aswegen was chairperson of the Credit Providers Association at the time the National Credit Act (NCA) was introduced back in 2007 and Wonga praise him for having “helped guide the credit industry through the transformation

required with the introduction of the Act,”. Mark Ruddock, international MD for the Wonga Group says: “we’re pleased to secure someone of Van Aswegen’s strong calibre to lead our South African arm of the business,”. Mr. Van Aswegen is expected begin work at Wonga during this month.

NEDBANK TO ROLL OUT WORKSHOPS IN 2015

Following the positive response to Nedbank’s engagement with the industry at workshops held across SA last year Nedbank have once again announced that they will be running workshops in KZN, Cape Town and Gauteng in June, July and September this year. Nedbank say they believe that “each stakeholder in the Debt Counselling industry plays an integral part in rehabilitating the over-indebted consumer” and this is why they “will continue to engage with registered debt counsellors… to the benefit of our mutual clients.”

COURT ORDERS NCR TO REVIEW FEES

When a court makes an order then the affected parties have to abide by the findings of the Court (or appeal the matter to a higher court). If one of the parties does not do what the court order says they are in contempt of the court order. What happens then? Well, the other

“ It always seems impossible until it is done” - Nelson Mandela Specialist Attorneys dealing with Debt Review matters Magistrates Court and High Court Matters

TEL 021 913 2514 FAX 0866070940 EMAIL info@liddles.co.za PHYSICAL ADDRESS 7 Chenin Blanc Street, Oude Westhof POSTAL ADDRESS PO Box 3407, tygervalley, 7536

NEWS CONT. parties to the court order can go back to court and compel the non cooperating party to comply. This is pretty much the situation that developed between MFSA and the National Credit Regulator (NCR) recently. Last year a court ordered the NCR to do what is required in the National Credit Act and review service fees for those offering credit every 3rd year. MFSA members have come under fire from the NCR in regard to breaches of the NCA. One of the offenses has been charging more for service fees than the allowed R50/ month limit. After an urgent application by MFSA the NCR has now been ordered by the North Gauteng High Court to review service fees on credit accounts by the end of May 2015 as per an order issued last year by Justice Potterill. Last year Justice Potterill ordered a review of the service fees within 9 months of a court order (which was made in June 2014) That case also had to do with service fees and was about Bitline. MFSA have complained that the NCR â&#x20AC;&#x153;still prosecutes members with impunity on the invalid regulationsâ&#x20AC;? It looks as if MFSA have now successfully called the account service fee amount into question which benefits those members who were having problems from the NCR in this regard. The NCR have been quick to point out that their investigations into some MFSA members found faults not only with the R50 service fee but other more serious breaches of the NCA. It seems though that the NCR have been too busy to get around to the required reviews of the fee structure. In all likelihood though this move by MFSA will stall any enforcement by the NCT in regard to matters where this point has been raised. The NCR will now have to review the current service fee allowable and could increase it should they feel it is justified. After 9 years at the same

amount it is likely that there would be an increase in these fees even if only a marginal one. MFSA have said that this low fee amount of R50/month has been a contributing factor in around 1000 micro finance creditors close their doors recently. There are, of course, other factors such as tightening lending criteria, poor repayment by lenders and an ever worsening economy which has killed consumers ability to actually repay loans. Creditors also get to charge other large financing fees and a fairly high interest rate on short term loans which cover their expenses so the R50 fee is just the tip of the iceberg and a tiny factor in whether a mirco financer is viable and profitable. MFSA may well be hoping that the entire fee and rates structure will be reviewed by the NCR. It thus seems that this is more of a strategic move than a financial life or death matter for micro financers.

NCR SEEK DECLARATORY ORDER

The National Credit Regulator (NCR) appeared at parliament before the trade and industry committee this week to discuss their looming court application in the Gauteng High Court in regard to shortfalls on auctions. The NCR say that the National Credit Act does not give enough clarity on the obligations of credit providers in regard to auctions. There have been a recent spate of complaints by consumers in regard to having their homes sold on auction for ridiculously low prices leaving them with a massive shortfall which the banks then demand that they pay. NCR CEO Nomsa Motshegare told the committee that a minimum reserve might be a step in the right direction. The NCR hope that the declaratory

South Africaâ&#x20AC;&#x2122;s leading Debt Counsellors

order will help reduce abuse and huge burdens being placed on already burdened consumers who have in most cases just lost their homes. BASA have said that they wish the NCR had come and tried to deal directly with them on this matter as their members seldom use this option and they would have preferred to talk about it before the matter went to court. The results of the court application could have a massive impact on how auctions are conducted and how much debt consumers are left with after such a sale in execution. A declaratory order has the full force of law and would be binding on all parties. At present the NCA simply says that the asset should be sold in the shortest possible times for a fair price but give no indication of how this price would be fair and how it might in any way relate to “market value”.

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DEBT REVIEW AWARDS WEBSITE

The Debt Review Awards was first held in Cape Town in 2014. The Awards recognizes hard work and excellence in the field of debt review by Debt Counsellors, Credit Providers and Payment Distribution Agencies. The dedicated website for the Debt Review Awards 2015 is now up and running. The web address is: www.debtreviewawards.co.za If you are interested in the Awards process and how it works you can head over to the site and check it out. It has information on the Debt Review Awards process, on the Debt Review Awards Gala and how companies can get votes from the public in the Public Voting or “people choice” Awards.

THE NATIONAL CREDIT AMENDMENT ACT

NATIONAL CREDIT AMENDMENT ACT

JOB INTERVIEWS & YOUR CREDIT BUREAU REPORT

Going for a job interview is stressful. If you have been having financial difficulty a lot might be riding on your getting a better or higher paying job. You worry about what they will ask and how you will answer. For many there are other concerns as well. With over half of all credit users in the country being behind on payments and almost all of those being not one but several months behind on repayments their credit record does not look great. It is therefore even more stressful to consider what will your prospective boss think if he looks at your credit bureau report or credit score? For the hundreds of thousands of South African consumers who are under debt review it is also concerning that someone might look at your credit report and see the â&#x20AC;&#x2DC;debt reviewâ&#x20AC;&#x2122; status and not really understand what debt review is. A perspective boss might think that the debt review status is a bad thing when in fact it actually shows how responsible you are. That status means you are now regularly paying your creditors back each month and have taken steps to correct a bad situation where you previously were not able to fulfil your obligations. Will the prospective employer understand? Will they be prejudiced? Well, the recent National Credit Amendment Act coming into effect has made a significant change in this regard. If a company, who is hiring staff, want to draw a credit bureau report this can now only be done where the recruitment agent certifies that the request is for a position in the company that requires honesty in dealing with cash or finances. Over time more clarity on what type of positions those are will be provided. This means that should you be applying to work as a receptionist, assistant or perhaps a sales person or mechanic (among a million other types of jobs) you no longer will have people poking into your personal finances which is no business of theirs. Whether your credit bureau report looks great or not will not be a consideration but rather the focus will be (as it should) on your ability to do the work required or not.

NATIONAL CREDIT AMENDMENT ACT

CHANGES TO AFFORDABILITY ASSESSMENTS

When a consumer applies for credit, the National Credit Act called for credit providers to check if the consumer could afford the credit or not. If the credit provider did not check but still gave credit this was called reckless lending. If the credit provider did check and saw that the consumer could not really afford the credit but still gave it to them anyway then this too was called reckless lending. If consumers were presented with documents to fill in and sign in a language (or in complicated language) they did not understand then this is also called reckless credit. The NCA called for creditors to apply their own minds to checking if consumers had the means to pay back the borrowed funds each month. It did not define exactly how they should do so (though it did kind of hint). Over the last few years more and more people have been falling behind on payments and we are now in a situation in South Africa where half the people who have credit are not paying each month like they should. Around 45% of all credit users are 3 months behind on repaying their debts. This has lead to massive problems for credit providers like African Bank who struggled to get money back from consumers. It was decided that credit providers needed to be given more direction in regard to how to check if people can afford credit. The recent Amendments now put in place room for added direction on affordability assessments. The NCR has over the last while been calling for comments and issuing drafts of guidelines on how this will be done. This is good news for credit bureaus as their services will now be an obligatory part of assessing if a consumer can afford credit.

NATIONAL CREDIT AMENDMENT ACT

CLEARANCE CERTIFICATES

In the debt review industry we often talk about unintended consequences. These are often complications that have come about due to either the way the National Credit Act was originally written or perhaps a strange result of a big court case about debt review. One of the challenges that came about due to the wording of the NCA was the inability of a consumer to easily leave the debt review process once it had started. The NCA made allowance only for totally paying off all ones debts before the Debt Counsellor could issue what is called a clearance certificate. This form shows that a consumer has been under debt review and paid up all their accounts as per their court ordered restructuring agreement. The industry soon realised though that there was a problem. If a consumer could only leave debt review with a clearance certificate once they had paid everything off then what about those consumers with homeloan bonds which last for 25 or 30 years. This might then mean that such consumers were barred from gaining access to credit again for 30 years even if they had paid off their smaller debts. A consumer who had maybe entered debt review merely for a few months while they were on maternity leave and received a consent order with a bond in it might be stuck for years and years under debt review even though they were quickly able to repay their debts as normal. Thus it was decided that with the implementation of the NCAA2014 consumers would be able to get a clearance certificate once they have paid up their smaller debts. The industry is now discussing the ramifications of this and debating to a certain degree whether the consumer needs to bring their bond account back up to where it should be according to the original contract or whether they would simply continue to repay the arrangement as per the debt review restructure.

DEBT REVIEW AWARDS THE PUBLIC VOTING The Debt Review Awards consists of two separate processes. Firstly, panels of industry experts get together and discuss the thousands of registered industry players (as can be found on the NCR’s website database). This is known as the Industry Panel Awards. Their expertise and experience helps these panels consider who in the industry is currently doing very well and to award them for doing so. The panels shortlist registrants and announce nominations and ultimately winners in various categories over a number of months. At the same time it is important to understand how the public view the various role players in the debt review industry. Public perception is a very important facet of adoption of the debt review process. Thus this year the Debt Review Awards will once again feature a ‘people’s choice’ or favourite service provider process called the Public Voting Awards. This separate process (which runs at the same time as industry expert panels are meeting and discussing the industry) will poll consumers take on the many different aspects of the industry. The two processes do not interact or influence each other. The Panel And Public votes are not added together rather they run a separate events. Both the Publics views and the Industry Panels winners will be announced at the annual Debt Review Awards Gala. This year the gala is being held in Gauteng on the 13th of June. As in most similar initiatives, companies involved are allowed to invite their clients to vote for them. They are however not allowed to incentivise their clients to do so. The question is: will consumers be prepared to go online or send an SMS to vote for these companies? After all, if you are not getting good service from a company, would you go to all the effort of voting for them? Hardly. Thus this separate portion of the Debt Review Awards will also be telling in showing who has a good enough relationship with their consumers to convince them to cast their vote. Public Voting - For who? Consumers will get a chance to vote for their favourite Debt Counsellor. Obviously there are smaller and bigger debt counselling firms out there and so while consumers will simply vote for their favourite DC ultimately the results will be presented in 3 separate categories: (1) Small/ Boutique Debt Counsellor, (2) Medium Debt Counsellor and (3) Large Debt Counselling Firm. This allows consumers who wish to show support for a smaller debt Counselling firm to know that the firm they are voting for will only be compared to other smaller firms. Larger firms will be compared to larger firms etc ensuring a level playing field for those Debt Counsellors in each category.

Consumers will also get a chance to vote for their favourite Payment Distribution Agency (PDA). A PDA is a company that helps consumers split up their single monthly debt repayment to all their creditors in the specific required payment amount for that particular month according to their court ordered repayment plan. They help track the payments and provide a statement to consumers using their services. All 3 PDAs with Service Level agreements with the NCR are considered in the same category. Consumers under debt review (and other members of the public) will also have the opportunity to vote for their favourite Credit Provider in several categories. Consumers under debt review experience various levels of service from the companies they owe funds to. These range from excellent service with quick responses and high levels of cooperation to really bad service with threatening phone calls, unnecessary parallel legal processes and resistance to court proposals. Those experiencing good service and being afforded respect and consideration under the debt review process will now have a chance to show their appreciation for these companies good service by voting online or via SMS. It might be that a vehicle finance company had a collections agent trying to repossess a vehicle even though a consumer was already under debt review and paying each month. Did the creditor swiftly react to communication from the Debt Counsellor and â&#x20AC;&#x2DC;call off the houndsâ&#x20AC;&#x2122; or did they try to force the matter at court causing great stress? Now consumers will be able to show their views regarding banks, vehicle finance, retail creditors and those offering loans. Once again several categories will be considered so that smaller creditors offering micro loans will not end up being compared with those offering vehicle finance. Votes will be cast via the www.debtreviewawards.co.za website and via SMS (* Terms & Conditions & costs apply). For more information visit the site or speak to your Debt Counsellor.

www.debtreviewawards.co.za

DEBT REVIEW AWARDS

IN A NUTSHELL

PDAs

Payment Distributions Agencies are here to stay. The National Credit Amendment Act (NCA2014), effected on the 13th of March 2015 provides for the registration of payment distribution agents in Section 44A. This is a very positive step for the debt review industry, recognising the value that Payment Distribution Agencies (PDAs) play in the collection and distribution of debt counselling payments. The NCA2014 also recognises the independence that Payment Distribution Agencies must have in order to protect the interests of consumers. Credit providers are not permitted to have any direct or indirect interests in the management or control or the business operations of a payment distribution agent or a debt counselling business. Guardians of the Industry. According to the National Credit Regulator (NCR), PDAs have distributed more than R18 billion to credit providers, since May 2008 to February 2015. PDAs are like the guardians of the industry ensuring that debt counselling payments are collected and distributed, accurately, safely and securely. However, the function is far more complex than people initially perceive. Sophisticated debt counselling and payment systems. PDAs have developed sophisticated proprietary debt counselling systems and payment engines to ensure that consumer payments are distributed according to the rules and regulations set out by the National Credit Act (NCA) and the NCR. These systems are used for all aspects of debt counselling (proposals, consents, legal, payment plans, payment records, reporting). They help manage complex payment

scenarios, deal with cascading and interest fluctuations, prevent and flag unscrupulous charging and ensure that payments are made according to debt review payment plans. Without these PDA proprietary systems, business operations and call centres to support debt counsellors and consumers, the debt review industry would struggle to function. PDAs empower debt counsellors to better service over-indebted consumers. PDAs like the NPDA empower debt counsellors to better service over-indebted consumers through nationwide training, debt counselling systems, innovative services and programmes. This is done through continuous improvement to payment collection methods like AEDO and NAEDO. Practice management services like My Practice™ facilitate communication between key role players, ensuring legal timeframes and processes are adhered to. PDAs further alleviate the administration burden required of debt counsellors by keeping detailed consumer records and all proof of payments on their behalf. The DCM Partnership Programme™ is designed to educate and support debt counselling consumers thereby increasing first payments by as much as 20%. PDAs protect consumer funds. The NCR regularly audits PDAs to ensure compliance with strict guidelines. PDA’s must keep comprehensive audit trails of all transactions and provide monthly statements. Consumers are further afforded protection through fiduciary insurance cover, which covers the theft and misappropriation of consumer trust funds. PDAs support consumers through the debt counselling process. PDAs strive to ease the journey of the consumer through the debt counselling process by: providing education programmes; offering call centre query services; being an independent third party in stalemate negotiations; being consumer advocates when credit providers unfairly or incorrectly collect payments or repossess assets. The value offered by PDAs is far, far beyond the switching of payments between consumers and credit providers. Imagine as a debt counselling consumer having to negotiate independently, advocate your rights, and pay an average of eleven credit providers on your own? The risk of missing a payment or making an incorrect payment, which can prejudice your debt review process, is just too high. We all need a guardian, if you are a debt counsellor or debt review consumer, you know only too well how your PDA makes a difference. 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 NPDA. For help, contact DCM on 0861 628 628.

DEBT REVIEW AWARDS 2014

WINNER

WINNING 3 OUT OF 5 AWARDS • CLIENT & CUSTOMER SERVICES • SYSTEM & SOFTWARE INTEGRATION • INDUSTRY SUPPORT & ENGAGEMENT Thank you for your support.

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DCM PARTNERSHIP PROGRAMME™ Adding value through innovation and partnership.

Better Payment Behaviour

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NEIL ROETS DEBT RESCUE 0861 800 009 WWW.DEBTRESCUE.CO.ZA

How long have you been a DC? It has been 7 years,since being registered in 2008. What did you do before becoming a DC? I was a practising Attorney. I completed my articles with a law firm that did legal work for several major banks, before opening my own practice. Why did you become a DC? I was fascinated by the new legislation, the National Credit Act of 2005. I have always enjoyed working with people and envisaged that finding solutions for over-indebted consumers would be ideal. As an attorney, I had encountered many people and businesses who were faced with financial hardships, and seeking legal assistance to prevent the loss of their hard earned valuables. With the inception of the NCA, a solution was provided to combat over-indebtedness and therewith the ultimate consumer protection in a time where the world’s economies were facing financial meltdown. I have always been an activist for consumer rights and I found this new legislation to be a platform empowering consumers, not only with information but also their basic rights. As Debt Counselling is essentially a legal process, and being driven by my passion for consumer rights and law, the transition was not only a natural one, but it was coupled with the enthusiasm of being a pioneer and the burning desire to be a champion of the new legislation. What area of South Africa do you practice in? Our offices are in Kempton Park, Gauteng but we have a national footprint. We are able to assist consumers anywhere in South Africa. What makes your business a success? We offer a wide variety of solutions to over-indebted consumers, thereby assisting them in a holistic manner. We also have a multicultural team, who can engage with consumers in their preferred language, thus making the process, and comprehension thereof, a lot easier. Consumers do not always have the luxury of time in this fast-paced era, and we are there to assist them in making their life and the process easier, in a way that is more convenient to them. I have always believed in the process and principles of debt counselling, since I started. The industry has been through peaks and valleys, as any new, untested industry would be. We have had to be creative and innovative to remain in the game, in the interest of providing the best solutions and protection for our customers. Also, we have had to stay abreast of all the frequent changes in this industry, and move on from the times where it was perceived as ‘credit provider vs debt counsellor’, to always remembering that there is often a mutual customer who is often a good consumer going through a difficult time. Lastly, the team of hard workers in the office... We currently have over 100 dedicated staff members, who are passionate about their work and helping our customers. The diverse background of the team allows for us to assist almost any consumer who approaches us for help. The team’s background includes other registered Debt Counsellors,

legal eagles, ex-bankers, accountants, IT specialists, and service-oriented staff members who will go out of their way to find solutions for our customers. We measure our human resources as an immensely valuable asset. All of the above has led to Debt Rescue becoming a leader in the field. How did it feel to be nominated for an award in last years Debt Review Awards? It came as a total surprise to us and yet as a huge honour, as it was recognising the role that we have played in the industry. The Awards are a great initiative providing a platform which gives recognition of the hard work by all the stakeholders that have shaped the industry into what it is today. Where do you find new business? Through various channels, which includes marketing, employee wellness, consumer education, and last but most importantly, word of mouth from our existing clients. Who are your most co-operative and least co-operative credit provider at the moment? We have gone out of our way to establish good working relationships with the credit providers, in an effort to get the best solutions to our mutual consumers. What is the biggest challenge facing Debt Counsellors at the moment? We have noticed that the industry has been experiencing an increase in the number of consumers applying for debt review, but we are starting to see an increase in number in consumers who experience even further financial hardship subsequent to applying for debt review. These factors, which include spousal retrenchment and other economic circumstances, are leading to consumers struggling to meet the already reduced debt review instalments. What is the biggest challenge facing your clients at the moment? The ever-increasing cost of living continues to place further strain on our customersâ&#x20AC;&#x2122; already stringent budgets they are living on, with various factors that they have no control over. This includes the obvious such as the ever-increasing high cost of living, fuel and transport cost increases, unforeseen medical expenses, annual insurance and medical aid escalations, electricity hikes and inflation, none of which are being matched by salary increases. What advice do you have for consumers under debt review or consumers in debt trouble? Always make your debt counsellor your first point of contact, should you have any questions, queries or encounter any problems. Be knowledgeable about your own debt review application and be pro-active in getting information and tracking the progress through the months and years. Last, but not least, be committed to the process. It is not a drive-thru process, or a quick-fix solution, but a medium-to long-term plan to pay off your debt. The debt counsellor and consumer have a common goal on seeing a client becoming financially emancipated.

DEBT REVIEW AWARDS SAVE THE DATE 13.06.2015

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For further information on how we can help you with your Administrative functions contact Ilana Van Herwaarde, DC Operation Centre (PTY) Tel: 0867227405 Email: info@dcoperations.co.za

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All professionals have professional indemnity if the unforeseen happens. Do you as a professional Debt Counselor have professional indemnity as stipulated by the ethical code?

011 622 9460

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

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DEBT COUNSELLING COMMUNITY SUPPORT Debt Counselling Community Support held our first fundraising breakfast in Cape Town this month. It was extremely well supported. We wish to thank all those who attended. The funds raised will be put to use in assisting vulnerable debt review consumers across SA. We particularly want to thank Hyphen for their enormous Pledge, DC Partner for sponsoring 4 food vouchers for needy debt review consumers and Debt SOS for their contributions towards the fundraiser.

DEBT COUNSELLING We also want to say thank you to Consumer Friend,SUPPORT Taljaard & Scheepers, JDV Debt Counsellors, COMMUNITY Corporate Strategy Group for their pledges and sponsoring tickets.

A big Thank You also goes to Steyn Coetzee Attorneys for sponsoring the venue. Join us in April as we challenge the community to help settle a consumers account to help them get out of debt. Send your stories to admin@dccsupport.co.za

www.dccsupport.co.za

DEBT COUNSELLORS ASSOCIATIONS ANNOUNCEMENT BOARD The next DCASA Meetings will be: 20 May

Gauteng Branch Meeting at Kempton Park Golf Club from 11:00

22 May

Western Cape Branch Meeting at Parow Golf Club from 10:30

10 June

KZN Branch Meeting at Health Haven, Westville from 10:00

19 August

DCASA Conference.

Watch an entire documentary devoted to the Federal Reserve and Central Banking deception: http://www.youtube.com/watch?v=5IJeemTQ7Vk

For more information on meetings and membership, contact DCASA at 086 143 2272 or dcasa@dcasa.co.za

www.newera.org.za

Visit our Facebook page:

https://www.facebook.com BlackDebtCounsellorsForum

www.bdcf.co.za

Members are invited to submit comments and questions as well as examples regarding Pension Backed Lending for discussion at CIF. Submissions can be sent to secretary@allrpodc.org

www.allprodc.org

DEBT REVIEW AWARDS 13.06.2015

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APRIL

NEWSLETTER We had a very productive meeting with the NCR this month. We were very happy that the meeting was attended by NCR CEO Ms. Nomsa Motshegare as this enabled us to address the Regulator directly. We discussed many matters including the Credit Industry Forum and resulting NCR published guidelines. It is good to see how our association is receiving attention and that our voice is being heard by the NCR. We hope to hold further meetings with the NCR in the next few months to continue this dialogue.

POPI & PBL

Recently two sub committee meetings were held to discuss Pension Backed Lending and the POPI Act. After some discussion it quickly became obvious that some legal expertise on the subjects is required. As such these committees will now consult with and get legal opinions on the topic to help guide the committees.

END BALANCE DIFFERENCES

The meeting in regard to end balance differences was postponed recently as was the CREDIT INDUSTRY FORUM monthly CIF meeting. Both the subcommittee Thank you to all those who contributed to our and regular CIF meeting will now take place submissions to the CIF recently. Also a big thank on the 29th of this month. We will attend and you to those members who were able to , at report back to our members. great effort and cost, attend the CIF meetings and represent our members interests. The NCR We once again call on our members to submit have already acted on some of the proposals any comments, concerns or proposed solutions coming out of the CIF and though non binding, to these issues via secretary@allprodc.org the opinions published might help to address some of the issues that our members are facing daily. We continue to strive to point matters back to the wording of the NCA (& NCAA2014) to ensure adherence with the Act.

CONTACT DETAILS FORUM: www.debtconcern.webs.com / WEBSITE: www.allprodc.org / FACEBOOK: www.facebook.com/AllProDC / TWITTER: www.twitter.com/AllProDC

DONâ&#x20AC;&#x2122;T WORK WITH AN OUT DATED VERSION OF THE ACT

2015

As our readers (and shoppers) will know the NCAA2014 has now come into effect. We have contacted our supplier and they have indicated that the amended NCA booklets will become available probably during April 2015 sometime. Those customers who have pre ordered will receive these booklets as soon as the begin printing and distributing them to us. We will update clients via email. Pre order yours now!

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

VOLUNTARY COURT ANNEXED MEDIATION

Mediation has become something of a dirty word in the debt review world over time. Several attempts were made by various parties to try establish a voluntary process which would not need to go to court (and would thus have little legal standing) and would not make provision for all the requirements of the National Credit Act. Over time the National Credit Regulator (NCR) has shut these initiatives down and even as recently as the end of last year they have sent out circulars on the subject. A circular in November 2014 pointed fingers at the Banking Association of South Africa (BASA) and referred back to the NCRâ&#x20AC;&#x2122;s actions in 2012 when they took steps to stop a similar project (know as VDMS). They referred to how the NCA Section 86 (which is about debt review) is the only place mediation is discussed , showing that Debt Counsellors would be pivotal to any such process. However the NCR say that they do not support voluntary debt mediation and asked all credit industry parties to not participate in any such projects. Part of the NCRâ&#x20AC;&#x2122;s concern is how such a process would work outside of the courts and leave consumers exposed should arrangements fail. Recently however a court process called Voluntary Court Annexed Mediation has come to light (and info published in the Government Gazette).

We asked Debt Counsellor Roger Brown of Credit Matters about this process to see what it is and if it might help over indebted people or even those under debt review. Df: Is this the same as VDMS or voluntary debt mediation? Roger: No, it is not. They sound similar but are two very different processes. Df: What is Voluntary Court Annexed Mediation? Roger: As has been published it is a process whereby a court approved mediator assists parties to a legal matter to discuss and identify a matter and then explore areas of possible compromise with the intention of resolving the dispute. Df: Is this Alternative Dispute Resolution? Roger: No, it is Court Annexed Mediation. Df: Why would someone make use of this process? Roger: A consumer might be at court and want to resolve a matter in a speedy fashion without expensive litigation or representation in a way that avoids tricky court technicalities. It could also be used in regard to matters that have been excluded from a debt review order. Df: Is this being done in all courts country wide? Roger: No, at the moment there is a trail project being run in Gauteng and the North West with the intention of it being rolled out country wide. Df: What matters can be referred for Voluntary Court Annexed Mediation? Roger: Any dispute, as long as the court has jurisdiction and can then make a ruling as agreed to by both parties. Df: Doesnâ&#x20AC;&#x2122;t this leave consumers exposed if the other party doesnâ&#x20AC;&#x2122;t stick to the agreement? Roger: Since the mediation results in a court order this means that it can be enforced through the sheriff of the court like any other court order. Df: If the voluntary agreement involves paying a debt in a certain way would the consumer have to make the payments separate from the debt review payments via a PDA? Roger: I see no reason why a PDA would not offer payment services for these matters. Df: Is Voluntary Court Annexed Mediation regulated by the NCR? Roger: No The process is still being tested and refined but may begin to have a future impact on consumers dealing with debt and with accounts falling outside of debt review. See more at: http://www.justice.gov.za/mediation/mediation.html#sthash.0GitU2wn.dpuf

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