Debtfree South Africa’s debt counselling magazine
July 2011 www.debtcounsellingsa.co.za
NCR accredited payment distribution agency
CONTENTS 02
Editors notes
05
News
12
Nasty phone calls
16
Saving tips
18
Simon Barkenhuizen
20
NCR New fee guideline
26
Events
27
Directory listing
of Credit Providers. This month we consider what several credit providers are up to after the recent Supreme Court of Appeal ruling regarding the sending out of section 86(10) letters. Not all creditors are using their heads so be sure to read the article which explains what you might need to keep an eye out for. Also things are afoot in the industry with a new fee structure coming into place we look at the recent fees published by the NCR. Increases mean some consumers will have to pay more for debt review but the increase will see many debt counsellors giving a sigh of relief as they will be able to keep their doors open to new business. So keep yourself informed and head for the ultimate goal of being debt free.
EDITOR This month we look not only at industry news which will no doubt impact on you but also at tips that will help keep that cash where we all want it to be...in your pocket. Prices continue to soar and life is tough, we know but focus on the positive: Debt review means taking matters in hand and working to clear your debt and get debt free in a responsible manner. True, many of the Creditors don’t want to play nice but... when do they ever? Perhaps, when they want to draw in new business but generally you know how a relationship sours when you owe someone money. This is even true http://twitter.com/Debtfree_DIGI
So Debt Counsellors want specialised ATTORNEYS who can sort out all their DEBT COUNSELLING needs...
RM Brown & associates
www.rmbrown.co.za
INDUSTRY
CONSUMER
NEWS FLASH NCR ANNOUNCE NEW DEBT COUNSELIING FEE GUIDELINE The National Credit Regulator has announced increases to the suggested fees for debt counselling (see our in depth report later in this issue for specific details). These fees will be in effect from 1 August 2011. DC’s and the various PDA’s have been notified of the increases by the NCR and DC are being asked to voluntarily agree to make these fees part of their conditions of registration. It is unclear exactly where such authority (based on the NCA) this fee structure guideline being published by the NCR is based on but it is expected that though there might be some opposition the fee structure will be adopted by most DC’s. Previously the Debt Counselling Association of South Africa (DCASA) had issued fee guidelines which the NCR promoted. However this was recently found to be in contravention of the Competition Act It was determined that it would be inappropriate for one association to “set “ such fees. The NCR have issued the increase fee guideline in the face of mounting pressure from an industry that has seen fees stay the same for 4 years. The fee guidelines have been met with mixed feelings. Some are saying the new fee structure promotes the assisting of the rich and neglects the poor . Others welcome the increased “caps” to fees as a boost to their businesses and creating a more sustainable business model.
NATIONAL CONSUMER FORUM APPLY TO CONSTITUTIONAL COURT TO ACT AS AMICUS CURIAE IN COLLETT V FRB While the NCF had previously appealed to the SCA to assist with the matter they were denied. Now the NCF have applied for leave to act as amicus curiae for this landmark case. Who are the NCF you ask?: 1 The NCF is an individual membership, nonprofit and autonomous organization that is dedicated to the protection and promotion of consumer rights and interests in South Africa. The NCF is an affiliate member of Consumers International (CI), a federation of over 250 consumer organizations in more than 120 countries. 2 The NCF works to assert and defend the rights of consumers as stated in the United Nations Guidelines for Consumer Protection of 1985 (and as amended in 1999). It educates consumers about their rights, lobbies on consumer issues, and speaks out where it can on a range of challenges that consumers – especially lower income earners – experience in their daily lives. 3 The aims of the NCF are to: monitor and raise vital consumer issues; focus on the consumption of goods and services, their motives and consequences, and the consumers’ potential to positively influence them; inform, generate opinion and coordinate campaigns; and work to increase consumers’ influence on the market place.
NAME FOR WESTERN CAPE DC’S FORUM Recently a group of concerned Debt Counsellors in the Western Cape (many former DCASA members) began meeting in person and online to discuss, as a forum, issues facing the industry and looking at possible solutions. The forum has not had an official name until now. The members of the forum (there are now over 100 members on the online forum) have chosen the name: Alliance of Professional Debt Counsellors The name tells one of their intent to act in a professional way and to work together as DC’s. Many feel that the choosing of the name is one of the first steps this forum could be taking towards one day becoming an association in the industry. This will of course be dependent on the Alliance’s vision and support from local DC’s in the Western Cape and possibly elsewhere in the country.
FORUM HAS 100 MEMBERS The group of concerned Debt Counsellors who have, in the Western Cape area, now chosen the name Alliance of Professional Debt Counsellors have set up a online forum to discuss the challenges facing the industry. Members of the forum are not exclusively from the Western Cape but from several other provinces as well. KZN and Gauteng have their own dedicated section on the forum. Everything from the Wording of the Act to behavior of certain Creditors and Debt Counsellors is discussed on the forum. While the forum has only been up for less than a month, the membership has grown exponentially. The forum now has 100 members (and growing). It is great to see so many members of the Debt
Counsellor community helping one another and sharing ideas. If you would like to visit the forum head over to: http://debtconcern.webs. com/
NEW CEO FOR NCR IN 2011? The DTI have said that the NCR may finally be getting a new CEO. This will be after months without official leadership. The NCR has been temporarily under an acting head (which has changed twice) since the previous CEO Gabriel Davel left last year. “The process of appointing the CEO is at an advanced stage” department spokesman Mr. Clement Manoko is quoted as having said last week. Interviews have been conducted and verification of qualifications and security clearance processes have apparently been completed. “We will recommend appointment to Cabinet for consideration and approval very soon” said Mr. Manoko. He did not however, indicate exactly when the department would make the final recommendation.
DC’S TAKE CONCERNS TO PARLIMENT On Tuesday 28 June 2011 a small group of concerned Debt Counsellors met with three Members of Parliament. The delegation from the forum called Concerned Debt Counsellors (now including the Alliance of Professional Debt Counsellors) consisted of Adv. Anton Barkenhuizen (E astern Cape), Adv. Beatrice de Beer (KZN) and Simon Barkenhuizen (former Chairperson DCASA Western Capenow member of the Western Cape APDC). The meeting took place at Parliament in the
morning and the discussion centered on the current issues facing the Debt Counselling industry and shortcomings within the NCA. Possible solutions were discussed and the delegation was told the exciting news that the DTI are indeed investigating the current proposed regulations (and further possible regulations) as well as possible future wording changes in the NCA itself. The Forum have been invited to future meetings with government including the Minister.
SOME DC’S THINKING OF TAKING LEGAL ACTION AGAINST THE NCR On the forum site of one group of debt counsellors it was recently stated that some members were thinking of a class action suit against the NCR. Apparently the heart of the issue goes toward referrals of business to the DC’s (or rather non referrals by the NCR to these DC’s. This follows on after a recent letter from a member told the story of how she called the NCR and asked for details of her own company. She was told that she and her company were not registered with the NCR (not true- she is CODE OF CONDUCT FOR DC’S registered but in the incorrect province) DCASA have reported that 381 Debt Counsellors The consultant at the NCR then wanted to signed the Code of Conduct thus far. recommend a different DC to her (thinking she was a consumer). As a result several members have called on other dc’s to fill in an affidavit and submit it NDMA FEEDBACK They say: “We are investigating the possibility The NDMA reports that for the period April of a Class Action against the National Credit to June 325 complaints were processed. Regulator. If you experienced any form 28% related to terminations, 16% to vehicle of injustice or know about same, let us repossessions, 9% relates to property auctions. know by sending us your affidavit to. law@ concerneddebtcounsellors.co.za, and post the original to P O Box 27288, Greenacres, 6057. While this matter does not directly effect DRAC FIGURES consumers and regardless of whether this matter does eventually become a legal one it 245 000 consumers have applied for Debt seems there is a lot of dissatisfaction with the Review. NCR’s dealings with several DC’s. It is hoped 110 000 active Debt Review Cases. this matter can be resolved. 6000-7000 new consumers apply for Debt Review per month. 26 425 cases have been resolved through the Courts. 100 000 consumers are currently loaded on the various PDA systems
SHOCKING NEWS ITEM IN BUSINESS DAY IMPLIES CORRUPTION AT NCR The Business Day has run a story regarding a DC who was supposedly involved with organising a bachelor party for a member of staff at the NCR. The report states that the Business Day has documentary proof of correspondence from the DC to NCR staff which states in part: “A house will do, a hotel in Midrand can easily be construed to be a wedding whereas we throwing a batchelor’s party. (sic) Privacy and being motherless is key as I have a few girls that have agreed to strip for the celebrant, I don’t c this occurring in a Hotel. Explore your imagination gents (sic),” The DC - Mr. Nyiko Reginald Matjokana was writing to officials (including a debt counselling monitoring officer and legal adviser) in an e-mail back in November 2009, ahead of a bachelor’s party he held for a project manager employed by the NCR. Business Day says that they knows the name of the three employees concerned and that as recently as last month they were all three still working for the NCR. This story shows the potential for corruption that could undermine the process. It also has raised questions about the relationships between DC’s and staff at the NCR. Are these the lengths to which DC’s have to go to keep their registration, or entice the NCR to send business their way? With the NCR being one of the first ports of call for many troubled debtors, it plays a crucial role in referring consumers to DC’s country wide. It
has been repeatedly stated that there is a lack of clarity as to how such referrals are given. Mr Matjokana - the DC accused - denied any attempt to influence regulator staff and said he had not supplied any women for the bachelor party. “It was merely a bachelor’s party for a guy we know and on the e-mail we jokingly said ‘this is what I’ll do’. You know that type of a thing...The person in question at the NCR does not refer clients. When people call, they give them the website. So how would I influence? We do our own marketing.” Mr Matjokana, of Maita Projects, has several offices in Gauteng, Middelburg and Bloemfontein. He has around 2000 clients at present. He claims his success has raised questions on the part of some people with bad intent “without appreciating our good efforts and the good work we offer the client”. Implying that he is the victim of a smear campaign. It is no secret however that the NCR have since conducted two investigations into allegations against him of bribery or that in both cases he has been cleared of said charges. Some point to friends within the NCR as shielding him. In October last year, Mr Matjokana even won an appeal against a bid by the NCR to de-register him. Stories like these expose weaknesses in the NCR referral system and magnify the concern of DC’s regarding exactly how these referrals are made.
SDC FORUM As at the time of this post, the SDC online forum had last had a comment by a member (not incl. Debtfree DIGI) on the 15th of June
ABSA VEHICLE PROBLEMS ALLOCATING FUNDS? Since the beginning of May ABSA vehicle have reportedly asked the various PDA’s to effect what are called “bulk payments” for consumers under debt review. What this means is PDA’s take all the money for ABSA vehicles and pay it over in one giant payment. The PDA’s then send ABSA a list of what funds are for who. NATIONAL CREDIT AMENDMENT BILL The Department of Trade and Industry has ABSA then allocate those funds into the various updated the portfolio committee on trade and accounts. Previously payments were made industry in Parliament on the timetable for by the PDA’s directly into the various clients expected legislation amendments to the NCA. vehicle accounts directly. Speaking to the committee last week, the Since this change however many ABSA clients department’s director-general, Lionel October, have reported not seeing their payments outlined the way forward for key pieces of towards their vehicles reflect on their statements and the incidence of unnecessary legislation in the pipeline. The bills mentioned included theNational terminations has increased. Credit Amendment Bill. This is set to be placed before cabinet in February 2012. Then expected to table in Parliament in April 2012. The National Credit Amendment Bill aims to For more regularly updated news follow us improve implementation of the principal act. In on twitter http://twitter.com/Debtfree_DIGI particular, it seeks to enhance the effectiveness of the debt review, debt counselling and restructuring process. According to the department, the proposed legislation is intended to “unlock the blockage that is caused largely by resistance of stakeholders to comply with the provisions relating to debt review and counselling and delays in adjudicating on debt restructuring matters by magistrates”. It is hoped that this will assist in sorting out issues regarding terminations, which courts should hear the matters, adjustments of interest rates and much more. 2011. Could this be an indicator of lessening support? Perhaps it is simply an indicator that members are too busy dealing with the recent spate of terminations letters and summonses their clients are receiving.
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INDUSTRY
CONSUMER
WHY AM I GETTING NASTY PHONE CALLS AGAIN? You may be wondering why you are suddenly getting calls from the bank asking you to make payment arrangements on accounts that you thought were under debt review. When you ask the person calling they might tell you that the account has been “terminated” from debt review and that if you don’t pay a specified amount they will take legal action against you.
that matter said that in certain circumstances a creditor can say they don’t want to be part of a debt review and they could then go to another court and try get that court to give them a judgment. However the ruling gave certain conditions where this would be true. One condition is that the account had to be in default when you first applied for debt review. However some of the big banks like Nedbank These phone calls can be worrying and could ABSA FNB and Standard Bank have now have you really concerned about what is decided they want to try kick out almost all of happening with your debt review. So what is the accounts which are under debt review. really going on? So what do they do next? Well, they call A few weeks ago a debt review case was heard consumers and try pester them into paying at the Supreme Court of Appeal. One part of more money. Obviously this will not be possible the ruling of that court was in regard to what (or you wouldn’t be under debt review). So is called “terminations” or section 86(10) of then what? Well, many of the banks will then the NCA which talks about an account which send you a summons to some court in JHB is under debt review being removed from the (probably). review. In that matter FNB got the opportunity to try sell off the persons home even though Aaargh, a Summons! Now what? the consumer would have paid the home off Well, the first thing to do is send your Debt in a reasonable time period. This is obviously Counsellor a copy. Then he will have to arrange a very worrying precedent. The matter is now for an attorney near the relevant court to enter going to the constitutional court which is the a notice that you intend to defend the matter. highest court in the land it is expected that this time the verdict will be quite different in this If the matter is for a smaller amount the regard. Constitutional Court matters take a very summons will be in a Magistrates Court. If it is long time to get heard and ruled on though. for large sums, like for bonds and vehicles, then it will be in the High Court. What the banks In the meantime however several of the hope is that you will not defend the matter. major banks have decided to send out a lot of This could allow them to sell the asset which “termination” letters. Why? Well, the ruling in was financed. If you do not defend the matter
they will get a judgment and will come after the asset. So, basically you have no choice but to fight them. What will your defense be? Well for the moment the Supreme Court of Appeal case mentioned earlier stated that a creditor should only “terminate” and account that was in default at the time of application for debt review. So if your account was in good standing then they should not have terminated. Another thing the judgment said was that a creditor should only try go to court if they proposal from the debt counsellor did not end up paying all the debt. If the proposal did sort out the debt then the matter should just be sent back to the court where your debt review matter is being heard. If the credit provider did not help in trying to negotiate an agreement during the debt review then too the matter should be referred back to the Magistrates Court hearing your matter. The good news is that in all these cases the court may award costs against the creditor for your legal fees (or part of them). However in a few weeks time when the matter starts to be appealed at the Constitutional Court then all these little points will not really matter since that judgment will not have force. Then the judgment on debt review matters which will be important will be Wesbank V Papier. This was a very nice ruling by a full bench of the High Court which said that if you have a court date for your debt review matter then creditors cannot send you one of these “termination” letters (unless you totally stop paying etc). Who knows what the banks will do then. They may have jumped the gun here.
Then if they send you a summons you will have to contact your DC, Send him a copy and have an attorney or advocate go to court to defend the matter based on that ruling. All in all, there seems to be no upside for the big banks in trying to get out of the debt review process. All that happens is they send you a letter and pay attorneys, then you have to pay attorneys too to defend the matter. Where do the funds to pay the attorneys come from? From the money that you pay towards your debts each month. So, for some time while you pay lawyers to fight them the bank gets nothing. Then if you defend the matter successfully the bank has to pay your lawyers bill and you begin to pay them again as you were before. If you are unsuccessful in defending the matter then the bank gets a judgment against you. You then have to pay attorneys more money to go to court again to ask a court to make a payment arrangement with the bank to take a small payment amount each month (probably what you were paying through the debt review anyway). This is a Sect 73 MCA application. Where does the money come from to pay the lawyers for this? You guessed it... from the money you would have paid the bank through your debt review each month. So, all they do is add a whole lot of lawyers bills and lose out on a whole bunch of payments while all this is going on. Obviously this is not a good thing as it means you will probably take longer to pay off your debts. So why are the banks doing it? Well, despite all the promises that the big bosses at the major banks have made about wanting to support debt review and help consumers going through hard times they are not really happy
with debt review, it seems and the banks are so strapped for cash that maybe they think they might get to sell a few peoples cars and houses and make a few desperately needed Rands. Sure, it is probably not going to work well and may even end up costing them money when it doesn’t work out but they are having a look to see if maybe they can’t crash the debt review process. However since debt review is part of the law they are going to struggle to get that right. The banks seem to have misunderstood the ruling in this recent matter. However, regardless of what happens to that matter, if you get such a letter [section 86 (10)] it means that the bank wants to make your life more difficult. They don’t want to help you. We
encourage you to tell people you know about your bad experience you are having trying to make a plan with whatever bank it is that is treating you so badly. Maybe if they don’t bank with such an institution they can avoid the problems you are having. If people stop banking with such banks they will eventually either change their nasty policies or go out of business. So tell someone, tell ten people. Tell your company, tell your friends. At the same time if you get calls and nasty letters let your DC know. Perhaps the matter can be taken to the NDMA and these matters will definitely need to be defended at court.
CONSUMER
SAVINGS TIPS Geyser Blanket Because hot water electricity use comprises around 40% of a typical households consumption, it is important to reduce heat losses in this area. Often geyser water temperature will drop by 1 degree C per hour, so constant energy is needed to maintain the temperature. A Geyser blanket can cut this energy use by half. You can do it yourself (the installation) since it is not fiberglass, so it is easily installed without any mess. It provides the equivalent insulation of 50mm fiberglass and has a really long life span. What does it Skype your friends instead of phoning them cost? Well, it varies but you are looking at especially those overseas. around: R120.00 for a Small 100L (1.8 x 1.2m) or R150.00 for a Medium 150 – 200L (2.2 x 1.8m) and then R200.00 for a Large 250-300L (2.6 x 1.2m). If you weigh that up vs the savings it makes good sense to wrap that geyser
Take sandwiches to work instead of buying lunch Use phone applications like Blackberry messenger and Whatzapp to send messages Start a lift club rather than sms’s
Wait till you have a full load before doing washing in the machine Keep bread in the freezer so it wont go stale before you use it all Dont use the oven for only one thing, bake a few things if you are going to heat the oven.
Shop once a week, not every day, make a list & stick to it, use coupons when possible, watch for specials, if you dont have to travel too far to different shops
Let water run into a bucket when you are waiting for it to get hot, then use it on the garden,or in the washing machine.
Use water filter jug instead of buying filtered water which can be very pricey.
Switch off lights when you leave a room Keep a bucket in the shower with you or keep one next to the bath for when you are done and before you pull the plug.
Make one or more nights per week vegetarian meal nights. Pizzas and pastas can be very Swap clothing & shoes you dont wear anymore enjoyable for the whole family. with friends Add a tin of any kind of beans to a stew or mince to make it go further Buy vegies in bulk when on special, then blanch & freeze them.
Send your tips to magazine@debtcounsellingsa.co.za
INDUSTRY ADVERTORIAL
A COMMENT FROM SIMON BARKENHUIZEN “Afford me the opportunity to dwell certain comments made in the article featured in DEBTFREE DIGI (June 2011), called DCASA WESTERN CAPE-LATEST.
commission to investigate irregularities in the Debt Counselling fraternity, chaired by wellknown consumer activist Ina Wilkins, with the blessing of the DTI.
Allegations by Tony Richards concerning my motivations are unfounded, grossly untrue, unprofessional as well as ill-mannered and I reject them entirely.
We are sure that the sudden change in policy and strategy by DCASA can be attributed to the intervention by this group of concerned debt counsellors. I feel that the group of Concerned Debt Counsellors have achieved more in the last three weeks than DCASA has in several years.
If you would like to know my motivations then the facts as set out in the open letter to the minister speaks for itself (See DEBTFREE DIGI May 2011)
That is why us concerned Debt Counsellors have no need for “CLOSED” meetings such as Isn’t it strange that NOBODY contested any of other groups do because we have nothing to the allegations in the open letter? In fact, we hide. were invited by the office of the minister and subsequently three Members of Parliament, to parliament where the current turmoil regarding Debt Counselling and issues facing the industry were discussed.
Simon Barkenhuizen
We were also instrumental in the founding of a
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INDUSTRY 25 July 2011 Our Ref: NCRDC NCR DEBT COUNSELLING FEE GUIDELINES Dear Debt Counsellor 25 July 2011 Debt Counselling Fee Guidelines have in the past been issued by the Debt Counselling Association of South Africa (DCASA). Our Ref: NCRDC In order to avoid potential issues of anti-competitive behaviour in contravention of the NCR DEBT COUNSELLING FEE GUIDELINES Competitions Act, such fee guidelines will now be issued by the National Credit Regulator. Dear Debtare Counsellor Attached the latest Fee Guidelines as issued by the National Credit Regulator which will be effective from 1 August 2011. They represent amongst other things an increase in existing tariffs. Debt Counselling Fee Guidelines have in the past been issued by the Debt Counselling Association South Africa (DCASA). Some Debt of Counsellors already have as a condition of their registration, adherence to Debt Counselling Fee Guidelines, either by way of a condition of registration or through the In order to avoid issues of Code anti-competitive behaviour in contravention of the incorporation of the potential Debt Counsellor’s of Conduct into their conditions of registration. Competitions Act, such fee nowtobeamendment issued by the Credit Regulator. These Debt Counsellors areguidelines requested will to agree of National their existing conditions to refer to adherence of the Fee Guidelines as issued by the National Credit Regulator. Attached are the latest Fee Guidelines as issued by the National Credit Regulator which will be effective from 1 August 2011. They amongst an increase existing tariffs. Other Debt Counsellors who do notrepresent yet in any form other have things as a condition of intheir registration adherence to Debt Counselling Fee Guidelines are requested to agree to the inclusion of such a Some Debt Counsellors already have as a condition of their registration, adherence to Debt condition in their conditions of registration. Counselling Fee Guidelines, either by way of a condition of registration or through the incorporation of the Debt Counsellor’s Code of Conduct into their conditions of registration. To effect the necessary changes to your conditions of registration in order to implement the new These Debt Counsellors are requested to agree to amendment of their existing conditions to refer Fee Guidelines in your practice, kindly complete and return to our Registrations and Compliance to adherence of the Fee Guidelines as issued by the National Credit Regulator. Department the attached consent form within 5 (five) days of receipt of this letter. Othercurrent Debt reference Counsellors who do not yet inCounselling any form have as a condition theirCounsellor’s registration The to adherence to Debt Fee Guidelines in theofDebt adherence to Debtwill Counselling Fee Guidelines requestedto toguidelines agree to the inclusion such a Code of Conduct also be amended to makearereference issued by the of National condition in their conditions of registration. Credit Regulator as opposed to DCASA. Until such amendment, your new condition as set out above will prevail. To effect the necessary changes to your conditions of registration in order to implement the new Fee Guidelines in your practice, kindly complete and return to our Registrations and Compliance Department the attached consent form within 5 (five) days of receipt of this letter. The current to adherence to Debt Guidelines in the Debt Counsellor’s Any queriesreference can be addressed to Mr. AllanCounselling Xaba of ourFee Registrations Department on 011-554 Code of Conduct will also be amended to make reference to guidelines issued by the National 2781. Credit Regulator as opposed to DCASA. Until such amendment, your new condition as set out above will prevail. Yours faithfully
Any queries can be addressed to Mr. Allan Xaba of our Registrations Department on 011-554 Toll share: 0860 627 627 / 0860 NCR NCR 2781.
127 - 15th Road, Randjespark, Midrand | PO Box 209 Halfway House,1685 | Tel (+27) 011 554 2600 | www.ncr.org.za
Debt Counselling Fee Guidelines 1. The Debt Counsellor may receive the following amounts in respect of consumers who have applied for debt counselling: 1.1. An application fee, limited to the amount prescribed in terms of Schedule 2 (2) of the Act, recoverable directly from the consumer upon receiving an application for debt review; 1.2. A rejection fee of R300.00 (excluding VAT) in respect of consumers whose applications have been rejected in terms of section 86(7)(a); 1.3. A restructuring fee of the lesser of the first instalment of the debt re-arrangement plan or a maximum of R6000.00 (excluding VAT), in respect of a consumer whose applications have been accepted in terms of 86(7) (b) or 86(7) (c). (Should a joint application be required, the fee can be increased to a maximum of R6000.00 (excluding VAT).) 1.3.1. 100% of the fee is payable at the first instalment. 1.4. Should a Debt Counsellor fail to submit proposals to Credit Providers or refer the matter to a Tribunal or a Magistrate Court within 60 business days from date of the debt review application the Debt Counsellor has to refund 100% of the fee paid by the consumer (excluding the application fee). 1.5. A monthly after-care fee of 5% (excluding VAT) of the monthly instalment of the debt re-arrangement plan up to a maximum of R400.00 (excluding Vat), for a period of 24 months, thereafter reducing to 3% (excluding VAT) of the monthly instalment, to a maximum of R400.00 (excluding VAT), for the remaining period of the debt rearrangement plan. 1.5.1. Payment of the monthly after-care fee is to commence in the 2nd month after the amount in 1.3.1 above has been paid. 1.6. Should the consumer withdraw from the process after completing stages 1.3 above, a fee equal to 75% of the restructuring fee as per 1.3 above is payable by the consumer. 1.7. A legal fee for a consent order of R750.00. The legal fee for the consent order may only be deducted in the 2nd month after the amount in 1.3.1 above has been paid. If the consumer’s affairs cannot be resolved through a consent order, and there are additional costs for further legal processes, these need to be separately negotiated with the client. The Debt Counsellor should be able to produce proforma invoices issued to them by their lawyers for legal services, when so requested by the NCR. 1.8. The applicable fees and related debt counselling services will be set out in an addendum to Form 16, which needs to be explained to the consumer and signed by him/her. 1.9. The above fees will become effective from 01 August 2011.
Information Sheet for New Debt Counselling Clients
1. Application fee 2. Professional Debt Counselling Assessment
Value (Excluding VAT)
Frequency
R
Once off (Month 1) Once off (Month 1)
50.00
3. Legal Fee for Consent Order*
Once-off (Month 2)
3. Legal Fee to refer debt review application to court
Once-off (Month 2)
4. Aftercare fee for 24 months
Monthly
5. Aftercare fee for remaining period
Monthly
6. Payment Distribution Agency (PDA) fee TOTAL for Debt Counselling process
Monthly
Note that the following will apply in the case of: Rejection
R 300.00
Cancellation fee (75% of Professional assessment fee)
Once-off Once-off
*Should your Debt Counsellor be able to obtain 100 percent consent from all Credit Providers a Consent Order can be obtained and this will result in a reduced legal fee. All legal fees are subject to consumer’s written consent.
The following services will be offered for these fees:
The initial professional assessment involves:
Application process:
Client interview and assessment
Evaluation of affordability
Discussion of debt review process
Processing of debt review files
Obtaining Certificates of Balance
Sending Form 17.2 to all credit providers
Arrange for PDA loadings to ensure correct timeous repayment
Proposal preparation and completion:
Proposal preparation
Dealing with proposal responses
The initial professional assessment involves: Legal preparation:
Produce documents as per specific court requirements
Affidavits, commissioner of oaths
Queries from credit providers and attorneys
Court appearance
Notify credit providers through Form 17.2C after granting of consent order
Update NCR Debt Help System
The aftercare service involves:
Updating PDA with revised payment plan and final payment plan once approved by Court
Updating the NCR Debt Help on progress of debt review
Follow up on non-payment to Credit Providers and Debt Counsellors for aftercare and legal fees
Dealing with suspensions of accounts payable to Credit Providers including incorrect PDA data
Dealing with letters of demand and termination received from Credit Providers
Obtaining of settlement amounts if the client is in a position to settle a debt
Monitoring and reminding the parties of progress on debt review application and Court date
Appearance at Court when the application is heard if required by Magistrate
Annual review for financial position of client as well as any dramatic change in financial circumstance that will impact the clients ability to repay as per accepted repayment plan and Court Order.
Obtaining proof of final repayment from all Credit Providers and the issuing of a Clearance Certificate (Form 19)
Updating Credit Bureaus that debt has been repaid via NCR Debt Help
Withdrawal of client from debt review – notification of Credit Providers and updating of NCR Debt Help.
After Care does not include:
Any legal action (Magistrate or High Court) or legal fees other than the debt review application
Any rescission of Judgments and/or Garnishee Orders
Any legal action by Credit Providers during the debt review resulting from non-payments by the client
Any counselling outside of the financial counselling as part of the Debt Review
Debt Wise Solutions
Debt review and distribution software. Proud Software provider to DC Partner, Payment Distribution Agency.
https://debtwisesolutions.co.za
As one of the five NCR accredited PDA’s (payment distribution agency’s) DC Partner has been part of the debt review industry since August 2008. Situated in George in the Western Cape, we are also the only PDA south of the Orange River. The systems, infrastructure and staff of DC Partner have been exposed to collection and distribution of payments for the past decade. DC Partner strives to render services of the highest standard to customers. DC Partner makes use of excellent software, provided by Debt – Wise. The PDA module is locally based and inherently linked to the Debt – Wise Debt Counseling software, which is internet based. Consumer information seamlessly passes from the Debt Counseling System to the Payment Distribution Agency. We are very excited to announce that we have integrated our PDA distribution system with the Debt-Wise front end software. The distribution system was developed to integrate into the Debt-Wise software in such a manner that the user will not need to change anything in their systems, but could just continue with their day to day work and would see the distribution side as an additional tab on their home screens.
At this stage we are systematically moving all our current clients to the new system and this goes hand in hand with in office training by one of our skilled training officers. Our main focus during the planning and creating of this system was to maximize data availability and accuracy. The DC can log into the system from anywhere in the country and with the click of a button he/she will be able to see what is going on in their dedicated PDA trust account, which clients made payments within the last 1, 2, 8 or even 24 hours, what fees are due to be paid to him/her, which files have distributed, which clients are in default. We do daily distributions on this system and it is therefore important to make the system as user friendly and interactive as possible as things happen very quickly. This will enable the DC to always see and be on top off what is happening to all of their clients and react, if needed, immediately. DC Partner offers free in house training at any location in the country and we will also give all interested DC’s free access to our system for a trial period of up to three months.
For any further queries please feel free to contact our offices at any time. DC Partner George Office Willie Boshoff – pda27@dcpartner.co.za Arnold Steyn – pda28@dcpartner.co.za Herman Joubert – herman@dcpartner.co.za 044 873 4440, 044 873 4530, 044 873 4532 DC Partner Gauteng Office Francois Van Zyl – francois@dcpartner.co.za Konstant De Vos – vossie@debt-wise.co.za 012 348 7624
INDUSTRY
EVENTS To Western Cape Debt Counsellors ALLIANCE OF PROFESSIONAL DEBT COUNSELLORS MEETING TO BE HELD ON 3 AUGUST 2011 12H00 PAROW GOLF CLUB COSTS FOR VENUE R300 (PLEASE BRING DONATION) AGENDA 1. Introduction - Interaction on the Forum by all members 2. Main Topics 2.1 Proposals for Amendments to the ACT (Please ensure that you bring your act and written proposals for changes. You must identify the section in the act, the proposal for the amendment, the reason for the amendment and the benefit thereof.) Please come prepared if you have suggestions to save time 2.2 Guideline for DC Fee Structure 3. Open discussion Kindly RSVP to adri@sfadebtrelief.co.za
SERVICE DIRECTORY DEBT COUNSELLING AA Debt Counselling Centre Anthea Johannes NCRDC531 Tel: +27 (0) 21 982 0522 Cell: +27 (0) 84 402 7032 Alan Watts NCRDC 962 NCR registered Debt Counsellor Tel: 084 4448439 Fax: 086 6501954 alan@active-debt-counselling.co.za www.active-debt-counselling.co.za Central SA Debt Counsellors 082 950 7806 Fax: 086 563 1621 Consumer Assist Andre Snyman Tel: 0861 628 628 Credit Matters 021 431 9100 info@creditmatters.co.za CS Debt Counselling Bernidene Smith NCRDC 764 057 352 4115/352 5000 Welkom - Free state Darran Manikam NCRDC704 debt@mailbox.co.za Debtbusters 0861 663 328 (NO DEBT) Debt Budget ph. 021 701 7744 Debt Solve Debt Counsellors Office: 033 397 0945
DebtSafe 0861 100 999
Debtonators 041 585 0276
Debt Rehab Colleen Van Wyk(BCom, LLB) Debt Counsellor NCRDC2619 Tel: 083 290 0848 Tel: 011 740 7374 Fax: 086 716 9694 Website: http://debtrehab.co.za
Fincorp debt Counsellors cc Cecilia Zwarts fincorpdc@yahoo.com
Debt Rescue Neil Roets NCR DC 474 Cell: 083 644 7406 Tel: 0861 800 009 Fax: 086 523 0617 E-mail: admin@debtrescue.co.za www.debtrescue.co.za Durban Debt Counselling Services Suite 112, 1st floor Union Club Building 353 Sm ith Street Durban, 4001 Tel: 031 301-7893 Fax: 031 301-5809 phumla.ngema@telkomsa.net Debt Counselling South Africa Cape Town Branch Tel: 021 919 66 94 Rod De Witt NCRDC831 Visit: www.debtcounsellingsa.co.za Debt Knowledge Debt Counselling 082 379 2337
Holistic Debt Counsellors info@holisticdc.co.za Helpdesk Debt Counsellors Allan Hoffman Tel: 0861 000 754 Help-U-Debt (Vaal Triangle) Wanine Tel: 082 445 3967 Help-U-Debt (Potchefstroom) Madra 083 390 3275 Help-U-Debt (Parys) Marilouise 082 920 6249 Help-U-Debt (Vanderbijlpark) Herma 083 320 8303 MG Consulting NCRDC 1403 Strand - Helderberg Area Telkom : 021 853 4537 Mobile Phone: 082 450 7459 / 082 782 0595 Fax Number: 0866 220 690 E-Mail: info@mgconsulting / cambouris.christina@gmail.com www.mgconsulting.co.za
NDA Debt Counsellors Your Trusted Debt Counsellors Gary Williams (NCRDC 143) Tel: 034 315 3880 Fax: 086 612 4112 gary@ndad.co.za www.ndad.co.za Think Green Debt Counselling Sandi Pauw sandipauw@mweb.co.za Tel : 012 991 6638 Cell : 082 460 7800 Fax : 086 219 2615 Incentive Debt Counselling “Paving the way to a Debt Free Tommorrow” Darran Manikam NCRDC704 Tel: (031) 409 9379 Fax: (031) 409 1327 Cell: 0845898286 Branches: Phoenix and Shallcross Indigo debt counsellors CC Tel: 087 808 9734 Fax: 086 580 8675 indigodc@iburst.co.za
DRS CRADOCK Herman Marais Cell: 082 378 3743 Fax 045 838 6572 Email cradock@drssa.co.za
DRS PORT ELIZABETH Office: 041 453 8961
DRS QUEENSTOWN Herman Marais Cell: 082 378 3743 Office: 045 838 9764 Email herman@drssa.co.za
DRS SOMMERSET EAST Luther De Bruyn Office: 042 243 1107
DRS MTHATHA Herman Marais Cell: 082 378 3743 Office: 047-5323356 Email herman@drssa.co.za
MANGAUNG Zune Coetzer Office: 051 436 4515 Email zune@drssa.co.za
EASTERN CAPE: DRS ALBANY Office: 041 365 5857 DRS ALGOA Craig Wheetman Cell: 083 299 0311 Office: 041 364 1888 Email david@drssa.co.za DRS BOND CHOICE P.E. Office: 041 393 7000
BORDER REGION: DRS EAST LONDON Office: 043 7212 656 DRS KING WILLIAMS TOWN Harry Light Cell: 082 573 5803 Office: 043 643 3024 Email: harry@drssa.co.za
DRS CENTRAL 041 586 2020 Email leon@lynxsa.com DRS DESPATCH Office: 041 933 1189 DRS HUMANSDORP Office: 042 291 0135 DRS KIRKWOOD EXPRESS Office: 087 8080 500
DRS SIDWELL EXPRESS Office: 041 451 0474
FREESTATE:
SOUTH FREESTATE Office: 053 591 0734 GARDEN ROUTE: DRS GEORGE Office: 044 874 2820 Email francoisv@drssa.co.za GAUTENG: DRS PRETORIA CENTRAL Ivan Mabuthu Cell: 082 266 6210 Office: 012 320 8304 Fax: 012 320 8388 drspretoriacentral@drssa.co.za DRS CENTURION EXPRESS Office: 012 653 0127 DRS HARTEBEESPOORT Office: 012 253 1231 DRS LIMPOPO CENTRAL Office: 015 297 1387
DRS PRETORIA NOORD Office: 012 546 2187 DRS ROODEPOORT EXPRESS Office: 011 472 4171 DRS RUSTENBURG 083 740 4620 DRS ZAMBESI EXPRESS Office: 012 7555 225 KWA ZULU NATAL: DRS MORNINGSIDE Ericah Mtshali Cell: 076 578 8660 Office: 031 301 5993 email ericah@drssa.co.za DRS DURBAN NORTH EXPRESS Office: 031 584 6305 DRS GREYVILLE Office: 031 309 8716 DRS KOKSTAD Office: 039 727 1430 DRS PHOENIX 082 374 7040 WESTERN CAPE: DRS BELLVILLE Office: 021 948 8523 / 4 DRS DIAMOND Office: 021 421 8563 DRS TYGERBERG Office: 021 945 4062 DRS WEST COAST Marius Coetzee Cell: 082 978 4407 Office: 022 713 3766 Email mariusc@drssa.co.za
Debt DRS SALDANHA Office: 022 714 3939 DRS SOLUTIONS 084 586 5600 Ramonti Debt Counselling Jacob Ramonti - NCR DC 932 Cell : 082 962 4537 Fax: 086 658 7627 Email:ditsamai@yahoo.co.uk Soweto U-Win Debt Counsellors Coreli Roos - NCR DC 509 Aliwal North, Burgersdorp, Bethulie, GariepDam, Smithfield, Springfontein Cell:079 626 66241 croos@global.co.za Rihanyo Debt Counselling (012) 804 50 57
SUPPORT SERVICES Staff Line Ndizani Executive Recruitment Cell no: 083 3028163 Direct Line: (011) 468 - 2150 E- Mail: saki@staffline.co.za Blank Design For all design and marketing needs including websites, brochures, business cards etc. Steve Rosenberg steve@blankds.com 083 700 2020 www.blankds.com Designtimes South Africa’s creative resource www.designtimes.co.za
FINANCIAL ABSA Customer Debt Repair Line 0860 356 356 Credit Ombudsman 0861 662837 Experian 011 799-3400 debtcounsel@experian.co.za Eric Streso Financial Planner B Juris LL B CFP MBA Tel: 0833273358 Fax: 086 612 7912 Fair Debt 0829019788 or 012-3772558 ray@fairdebt.co.za PACFIN Financial Solutions Head Office Tel: +27 11 9757445 Fax: 0865368783 36 Van Riebeeck road Kempton Park 1619 pieter@pacfin.co.za Monte Carlo Building No 8 Voortrekkerstreet Kempton Park 1619 Kempton Park Contact: Reyno Coetzee Tel: +27 11 3945363 Fax: 0866048002 Cell: +27 73 3690884 kemptonpark@pacfin.co.za Boksburg / Germiston Contact: Armand Posthumus Tel: +27 11 8921911 Fax: 0865620378
Nelspruit Contact: Ann Baker Tel: +27 13 7415559 Fax: 0880 1374 15559 Cell: +27 82 9024236 jeleroux@telkomsa.net Springs Contact: Wynand Mclachlan Tel: +27 11 8113728 Fax: +27 11 8113728 Cell: +27 83 2754014/5 wynmc@telkomsa.net Gooseberry Business Advisory Tel: 012 644 0589 Nedbank Debt Rehabilitation & Recoveries Services 0860 109 279 STD Bank Debt review Helpline Telephone: 0861 111 402 TransUnion 0861 482 482 Thinkmoney Financial comparison website Contact: Gareth Mountain Tel: 079 0996 798 www.thinkmoney.co.za WIZARD Vereeniging Making Mortgage Magic Wanine Smit Tel:+27 16 454 1132 Fax:+27 86 686 3678 Cell:+27 82 445 3967 www.wizard.za.com
FINANCIAL PLANNING Eric Streso Financial Planner B Juris LL B CFP MBA Tel: 0833273358 Fax: 086 612 7912
LEGAL Brett Carnegie Attorneys Tel: +27 (21) 4470332 Fax: +27 (21) 4470338 Mobile: +27 (0)82 320 6099 www.carnegielaw.co.za Suite 23(B) Unit 8 Waverley Business Park Mowbray 7700 Scheepers Attorneys Gerhard Scheepers schlaw@iburst.co.za LUCID Attorneys Tel: 011 880 1100 Fax: 011 880 1101 Email: info@lucidsa.com www.lucidliving.co.za/attorney Ludick Attorneys bev.ludickattorneys@gmail.com Prinsloo & Associates Attorneys and conveyancers Nanika Prinsloo Farm Bergamot, Paarl 7620 P O Box 6199, Paarl 7620 14 Laing Street, Barrydale 6750 Cell: 072-8558-106 Fax: 086-623-5986
nanika@vodamail.co.za www.empowerlaw.co.za RM Brown and Associates 601 Pier House, 13 -17 Heerengracht, Cape Town Docex 138 Cape Town t: 021 431 9127 f: 021 425 0875 e: lodea@rmbrown.co.za Agiliti CC Colleen Van Wyk(BCom, LLB) Tel: 083 290 0848 Tel: 011 740 7374 Fax: 086 716 9694 Website: http://agiliti.co.za
CREDIT BUREAUS Compuscan 0861 514 131 www.compuscan.co.za Computer Profile Bureau 0861 28 7328 www.c-p-b.co.za Experian www.experian.co.za Business- 0861 63 60 70 Consumer- 0861 10 5665 Micro Lenders Credit Bureau 0861 28 7328 www.mlcb.co.za TransUnion 0861 886 466 www.transunion.co.za
XDS 0860 937 000 www.xds.co.za
OTHER Association of Debt Recovery Agents: 011 781 3337 www.adraonline.co.za Banking Ombud 0860 800 900 www.obssa.co.za Credit Bureau Association 011 463 8211 www.cba.co.za Credit Providers Association 011 789 6825 www.cpa.org.za Department of Trade and Industry 0861 843 384 www.thedti.gov.za Financial Advisory and Intermediary Services Ombud 012 470 9080 www.faisombud.co.za
021 657 5000 www.ombud.co.za Micro Finance South Africa 012 345 0809 www.mfsa.net Motor Industry Ombud 012 841 2945 www.miosa.co.za
Debtfree South Africa’s debt counselling magazine
National Credit Regulator 0860 627 627 www.ncr.org.za Ombud for Short term Insurance 011 726 8900 www.osti.co.za Pension Funds Adjudicator 021 674 0209 www.pfa.org.za South African Fraud Prevention 0860 101 248 www.safps.org.za The Banking Association 011 370 3500 www.banking.org.za SA FRAUD PROTECTION SERVICE (FREE SERVICE) www.safps.org.za 0860 101 248
Financial Services Board 012 428 8000 www.fsb.co.za Furniture Traders Association 011 789 6770 Legal Resources Centre 011 836 9831 www.lrc.org.za Long Term Insurance Ombud
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