Debtfree DIGI July 2014

South Africa’s debt counselling magazine

WHAT IS DEBT REVIEW? DO YOU QUALIFY FOR A NEW LOAN? July 2014 www.debtfreedigi.co.za

Proud Sponsors of the Debt Review Awards

WHAT IS DEBT REVIEW? Debtfree asked Debt Counsellor Beverley Ludick of ObligCo to help explain the debt review process.

The National Credit Act was implemented to assist the South African Consumer deal with their over indebtedness. Its aim is to regulate credit providers in approving affordable credit to the consumer and to get existing over indebted consumers out of debt.

This way South African consumer can be financially well balanced and educated. Credit Providers also benefit with up to date credit agreements being paid. Consumers then automatically teach their young the benefit of a well maintained credit agreement.

Firstly you know you need help when you receive a Sec 129 letter, better described as a Final Demand in the olden days. This should not be ignored. You are given 10 business days to look for help, and the easiest of the remedies they offer to you in this letter is consulting with a Debt Counsellor. Please be advised that it is your responsibility to make sure you are use a DC that knows the process and you must feel comfortable with the consultation. You need to be well informed by the DC of the process and understand it. It is very important that you feel at ease when asking questions in the consultation.

Feel free to question the DC how long they have been in the Debt Review trade. Your credit future will be left in their hands once you start with the debt review process.

After a thorough consultation, your DC will reduce the monthly credit instalments to make life easier for you in the future. A form 16 will start the process after you have signed it. Normally the consultant

will keep you up to date after any negotiations with creditors. They will then apply to court for an official court order. Keep in mind that you must pay the negotiated monthly instalment towards your Debt Review even if there is no court order in place yet.

This will keep your side of the agreement in place and keep you safe. Every person’s Debt Review fees are different and are usually included in your first two monthly instalments.

As consumer you need to understand the benefits when you enter into DR: 1. You are now protected from any future judgements or listings from creditors.

2. All your debts are in one basket and will be maintained if you pay your DR instalment every month.

3. Your assets are safe as long as you pay your DR monthly instalment.

4. You learn to be a well-balanced financially educated consumer.

5. You can immediately enter the credit market when you have paid your debts under DR and your credit status will be cleared within 21 working days and financial freedom in within reach.

CONTENTS NEWS

DEALING WITH DEBT

DO YOU QUALIFY FOR A NEW LOAN?

DEBT REVIEW WORKS

HOW THE NATIONAL CREDIT AMENDMENT ACT BENEFITS YOU

DEBT REVIEW AWARDS GALA

“ 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

EDITOR’S NOTE We have passed the half way point on 2014. the longest winter night has come and gone and that means summer is just around the corner…even if it does not feel like it yet.

We also check out recent industry news. It seems the NCR has been everywhere kicking butt and taking names over the last few weeks.

We check out who is in trouble and why. We consider if a new loan might be the solution to It is common for people to put on extra weight a person’s current situation and whether you during winter and to later struggle to get rid of would qualify for a new loan if you feel you it in time to put on their costumes in summer. It need one. is much the same with debt. It can overwhelm you before you realize it. Sometimes it happens So, don’t let the winter chill (or a statement progressively and other times it can happen all from your creditor showing a large balance) in one go. Either way debt, like extra weight, get you down. Today you are one step closer can take much longer to get rid of than acquire. to summer and one step closer to finally being So, if you are slowly chipping away at your debt debt free. good for you. Keep it up.

This issue we look at one way you can deal with your debt namely the debt review process. It really works and we look at some of the benefits to consumers, their families and even to credit providers. This issue we also delve into the Debt Review Awards Gala and results of this years Awards program. We check out the red carpet and who left with golden piggys. Ever wonder what that person on the other side of the phone looks like when you call a Debt Counsellor’s office or a credit provider? Well, keep an eye out for them at the Debt Review Awards Gala. It was really great to see the industry all in one place celebrating how debt review is really working.

THE FNB DEBT REVIEW CENTRE IS COMMITED TO MAKE DEBT REVIEW WORK. As part of our commitment we have sent more than half of our DRC staff on training over the past couple of months. The training comprises of three modules where the following is presented to our learners.

Debt review from the perspective of the: Module 1: Consumer Module 2: Debt counsellor Module 3: Credit provider Each module ends with a written exam, and the training course lasts eight days. Although this puts a strain on our resources we are of the opinion that it is time well spent in order to up skill our staff in all the aspects of debt review to deliver a higher quality of service to all our stake holders.

The training will also be rolled out to our branch network and the different product houses.

Another very important aspect of our commitment, is to continue building rewarding relationships with our debt counselling counter-parts, many who have now become friends. Even if we do not agree on every single aspect, we can now settle our differences amicably by way of conversation.

Debt Counsellors have been inviting us to their offices to understand the processes they use and also where we discuss points of mutual interest or concern. We will continue to hold workshops, to gain an even better understanding of the problems that the Debt Counsellor’s face and how we can possibly adjust and streamline our processes in line with that of the Debt Counsellors.

Lynne Loizakos - Head FRB DRC. Roxanne Oelofse - Legal Advisor.

Khadeejah Ebrahim - Legal Advisor.

Karen van Musschenbroek - Operations Manager.

Team leaders: Abes Booysen - Court applications. Pamella Bulose - Proposals.

Joyce Machethe - Court orders.

Shantell Ryan - Operations Manager.

Team leaders: Kagiso Tlhoaele - Call Centre.

Doreen du Preez - Queries.

Lynette Fearick - Onboarding.

Faadiel Toffie - Operations Manager.

Team leader: Soondaram Naidoo - Terminations. Desiree Slack - Quality assurance.

Christo Hattingh - Manager FNB Quick Fix. Credit manager: Sumari Fourie.

Many DC’s have been using the fnbquickfix@ fnb.co.za e-mail address to forward suggestions on best practices, and what changes they would like to see. We want to thank you for your valued contributions and insights, and we want to ask all the DC’s to please continue forwarding suggestions.

We are extremely excited about the future of this challenging environment and will constantly seek better practices.

Regards,

First National Bank - a division of FirstRand Bank Limited. An Authorised Financial Services and Credit Provider 1929/001225/06 (NCRCP20)

INDUSTRY

CONSUMER

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

Wonga.com receives warning from the NCR

The NCR has issued a compliance notice to Wonga in regard to how they check if consumers can afford credit. An NCR investigation showed that Wonga have not been obtaining either sufficient proof of consumers’ income and living expenses when they apply for loans or sometime even any supporting information from consumers to verify their income and household expenses to check if they can actually afford the credit. This is a form of what is called Reckless Credit.

Wonga apparently have also not been keeping good records of their affordability assessments (when they do them), which later make it impossible for Debt Counsellors investigating possible reckless credit to see if they (Wonga) thought the consumer could afford the loan.

This also works against Wonga as it also points to possible reckless credit granting and is in contravention of the requirements of the NCA. Another issue is the illegal practice of having consumer pre-sign consents judgments (in the wording of the contract) and change of jurisdiction (away from where consumers live or work) Wonga now have to be audited and submit a report to show how they will comply with the notice and set these things straight or they face further action from the NCR and NCT. This local action coincides with international action against Wonga.com in the UK where

the UK regulator slapped Wonga with a R 467,000000 fine for sending consumers threatening letters demanding money from a made up legal firm which does not exist.

Consumers were getting letters of demand threatening legal action from a company called “Chainey, D’Amato & Shannon” which simply does not exist. Wonga got caught out and now have to recompense consumers.

The NCR get involved in R699 vehicle Saga

The National Credit Regulator have also issued a Compliance Notice to the entity operating the R699 vehicle scheme. The company, Satinsky 128 (Pty) Ltd recently stopped paying consumers to advertise their new car sales from R699.00. The NCR say they are not happy with the content of these adverts which were displayed on the cars because the National Credit Act (NCA) regulates advertisements for credit and says that there is minimum content that must be disclosed when credit is advertised to consumer. It seems Satinsky failed to meet these standards. One big problem is that the advert on the back of cars only discloses the possible monthly installment of R699 . The NCA actually requires that if an advert shows the monthly installment amount , it must also say how many installments there will be, the total amount of all the installments

South Africa’s largest Debt Counsellors

NEWS CONT. added up (including things like interest, fees & insurance), interest rate % charged and if there is any residual or a final amount payable. Since these are normally cars with limited space and not huge trucks this info has not been shown (even in small print). The company website also contains a statement that consumers will pay a reasonable interest rate but has not got the other required info or further details. The notice issued to Satinsky requires them to submit a proper audit report to the NCR confirming that its advertisements for credit comply with the NCA. Ms Nomsa Motshegare, Chief Executive Officer of the NCR says: “The audit report will provide assurance that all advertisements appearing on vehicles are in compliance with the provisions of the NCA,” …“Satinsky has an opportunity to bring its credit marketing practices in line with the provisions of the NCA, however, should it fail to do so, the NCR will approach the National Consumer Tribunal for stringent orders which may include an administrative fine,” says Motshegare. Since the entire scheme seems to have run out of steam and the company seems to no longer be able to compensate consumers (with money each month) this may be a bit too late or it may be the nail in the entire schemes coffin.

The NCR have announced that they are now also investigating the Satinsky’s R699 vehicle scheme for other possible contraventions of the NCA. There have been some allegations (unproven at this point) that there may have been reckless credit granting involved in some consumers cases. Ms. Motshegare says that: “The purpose of the investigation is to establish if vehicle owners were granted credit in accordance with the NCA. This is a separate issue from the credit advertisements appearing on the vehicles,” .

Increase in Identity Fraud in SA

Recent statistics provided by the Southern African Fraud Prevention Service (SAFPS) reveal that identity fraud is on the increase in South Africa. There was a 16% increase of this crime from a total of 3 327 cases in 2012 to a total of 3 873 cases in 2013. In South Africa, it is estimated that identity theft costs the local economy R1 billion each year. Checking for strange accounts on your credit report from time to time can help reduce the fall out if this does happen to you. The sooner you realise something is wrong and report it the better.

NCR Raid Micro Lenders Offices

The National Credit Regulator (NCR) have conducted raids on smaller creditor providers in Gauteng province in a bid to stop the abuse of consumers by unscrupulous lenders and ensure compliance with various provisions of the National Credit Act. This is simply the latest in a series of such raids that the NCR have conducted country wide. The investigation focused on credit providers operating in the Pretoria, Boksburg, Benoni & Kempton Park.

A total of 21 different credit providers were investigated during the raids. As a result of the raids, two people were then arrested and now two criminal cases have been opened. The dodgy lenders were found to be in possession of nearly 400 bank cards. This is a common illegal action by smaller dodgy mashonistas or loan sharks.

The focus of this kind of operation is primarily to identify mainly smaller credit providers who are unlawfully garnishing, retaining pension

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NEWS CONT. cards, bank cards, identity documents and personal identity numbers (PIN) of their clients as some sort of surety. “Retaining these cards is a contravention of the National Credit Act and it is a criminal offence”, said Nomsa Motshegare NCR CEO. The NCR say they are determined that: “The exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated.”

Last minute CIF meeting cancellation

more on their bonds and cars each month.

Economists say that we will continue to see further rate increases as the year goes by. The central bank last week cut its economic growth forecast for SA for this year to 1.7% from 2.1% . A huge factor is, of course, the five-month stoppage in the platinum industry. Other organisations are also seeing SA’s economic future as in trouble. For example rating agency Standard & Poor’s cut South Africa’s credit rating down to BBB-, on par with Russia and Brazil. Fitch Ratings reduced their outlook to negative from stable at the same time.

The CIF meet in Gauteng, meaning that many attending have to travel from KZN or CT. Confusion and inconvenience ensued The Credit & when some CIF members only received a last Debt Law Conference minute cancellation the morning of one or the Debtfree attended the Gauteng conference committee meetings. and has a full run down for you on the days activity. Read our round up of the conference here: http://debtfreedigi.co.za/credit-debt-law-conference-report/

African Bank Banking Details Change

Consumers will soon have the choice to repay their creditors either through a PDA or not. In circumstances like that, they will have to track when creditors change banking details like African Bank recently did. African Bank have coordinated with the PDAs to change details behind the scenes so this will not effect DCs or consumers using a PDA system.

SA Economy Remains in Trouble

The repo rate went up by 0.25 points which means that consumers will be paying a bit

National Credit Amendment Act 2014 when will it be in effect?

It is now thought that the DTI will issue regulations for comment before the NCAA2014 comes into effect. This could mean that the NCAA2014 will only be in effect from November or even December this year. This means consumers still face terminations and attempts to collect prescribed debt in the interim.

DEALING WITH DEBT

Credit is a wonderful thing, especially when you need additional funds immediately. Debt, on the other hand, can be a terrible crushing burden that can haunt you for years and years. If you are dealing with debt, then know you are not alone. Statistics show that half of South Africa’s credit active consumers are several months behind on their debt repayments. Millions of consumers are in trouble and are simply trying to deal with it each month.

Why are so many caught in debt?

We love ‘something for nothing’ and using credit can sometimes trick us into forgetting that we eventually have to repay and that we will have to pay more over time. Credit providers are everywhere and we can buy almost anything on credit these days. Applying for credit (or more credit) is sometimes too easy and if we are not honest with creditors or ourselves we can soon find we have access to a lot of credit.

Then when things begin to turn against us and costs go up, we often do not adjust quickly enough. We begin to spend more than we earn. Soon we are entirely dependant on our lines of credit, sometimes using one creditor’s money to pay another. Then if disaster strikes, it can topple us entirely over the edge into what is called “over-indebtedness”. We can’t afford to pay our debts and cover our monthly needs.

We are trapped!

Know your Debt Situation Beware of assuming you know how much you and your family owe to creditors. It may be well worth it to draw a credit bureau report and check what debts are showing. Also it is good to find out exactly what each one in the home owes as it is not uncommon for spouses to downplay or not disclose certain debts. It is very important to have the full picture so as to choose which debts are the most expensive or can be settled first. Study statements from creditors to see what charges are going off every month. Do you know what they are for?

Write it all down. Make a list of the creditors name, the overall amount owed, the monthly repayment obligation and if possible the fees and interest rate on that debt. Do this for each debt. Start with the biggest and work your way to the smallest.

Don’t play the blame game Work together as a family to combat and Some Ways to Deal with Debt Dealing with debt can be tricky. If it was easy overcome your debt rather than think of then no-one would have any issues. Sadly this “your debts” and “my debt” Don’t let your is not the case. So what can be done to reduce family member become the bad guy. Make debt the common enemy and have monthly debt stress and successfully cope with debt? family meetings to discuss your debt. Make the meetings short. Start with a brief review of your

statements and your overall indebtedness.

Don’t discuss where the debt originated but rather how much is owed now and how much can be allocated toward it this month. Doing this regularly and in a somewhat clinical manner can remove the stress of trying to find “the right moment” to discuss finances. Involve the whole family, even kids, so that they can all realise the seriousness of the situation. Don’t allow the meeting to develop into a fight.

Budget Though it is a pain, writing all your figures down will help you figure out where the problem is, if one exists. It will also help you identify areas where changes can be made to improve your situation. Once you have figured out your budget, try to track your actual spending to see if what you thought is true.

First: Write down your monthly income from everyone in the house.

Next: Write down all your monthly expenses for things like food, electricity, rent, transport.

Try to include everything you can think of, including haircuts and snacks. Try to work out a realistic figure for each individual item. Don’t forget about setting some money aside toward annual or unplanned things such as new car tyres, school books in January next year or doctors visits.

children, communicate with others and travel to and from work. There are, however, other things that are nice to have but not essential.

Do we need to have satellite TV? Did you have it growing up? Sometimes we also have to learn to say: “no” to others who come to us looking for money. This can be tough, but can save us a lot of heartache in the long run. Find ways to work more in our own homes rather than pay someone else to do so. Try to eat out less. Rather invite others to your house and ask them to bring something. Pack a lunch for yourself and family members. Find ways to reduce your spending.

Earn More If your current income is not covering your needs, then earning more is a sure way to improve your situation. Before looking elsewhere for new work, ask your current employer for an increase or offer to work a bit more or in a different position to earn more each month. Who is more likely to give you more money: A total stranger, who does not know how hard you work, or your current employer, who sees the benefit of your hard work each month? If however your current employer is unwilling to increase your pay, then you may have to look elsewhere. Before changing your job however, consider if there are ways to earn a bit more in the free time you have.

Change your mindset Lastly: Write down all the people you (as a Are you only happy when you have the latest household) owe money to, and how much and best things? This means that your happiness is dependant on external things. These things they want each month. tend to go out of fashion or break. You may need to change your mindset to consider what Spend Less We all need to have a place to stay, food to eat other things give you happiness. How about and clothes to wear. We need to educate our your friends, your family or helping others?

Make a list of the things that make you happy that money can’t buy and try figure out ways to spend more time doing these things. Invest in yourself, your health and wellbeing. This will pay large dividends over time. Whereas in the past having all the latest gadgets was the status symbol, being debt free is the new “rich”.

Save Rather than Buy on Credit Using credit is easy but costly. Consider saving toward a purchase rather than using credit.

If you have to wait for something you may decide that you don’t need it or that it was just an impulse.

Don’t be afraid to make BIG Moves Sometimes making minor adjustments will not be enough. Talk honestly with your creditors and try get written agreements in place with them for reduced repayments. Look for another better paying job, bite the bullet and move in with family or consult a professional like a Debt Counsellor for help with dealing with your debt. Don’t wait too long to make a big move if it is necessary.

Dealing with Debt Takes Time Getting out of debt normally takes a lot longer than getting in. So, we need to take a long ranged view when it comes to dealing with debt. While getting debt free is the end goal, reducing our expenses and increasing our income should be short term stepping stones on the monthly journey towards financial freedom.

Whereas in the past having all the latest gadgets was the status symbol, being debt free is the new “rich”.

What makes ADCAP successful?

When ADCAP was established we envisioned an industry where ADCAP assists most Debt Counsellors to run successful and profitable businesses.

Our mission was to achieve this through consistency, quality of service and innovation.

The second challenge is to generate sufficient client volumes in order to sustain your business. Most of the start-up DCs struggle to source business and are limited to a geographical area. Budget shortages play the most significant role in a Debt Counsellor’s inability to source new business.

When we reflect on the growth of ADCAP and the consistent growth we have facilitated for our clients, we realise that there are two main challenges that start-up DCs are faced with.

The first is the capital required to set up the required infrastructure. Many DCs use their start-up capital to set up offices and develop infrastructure, and then use whatever is left, usually a small amount, for marketing purposes.

And we all know that for a business to thrive in this industry, a Debt Counsellor’s marketing expenses must be the largest portion of their total budget.

Proud Sponsor of the Debt Review Awards

What makes it even more challenging is the fact that the profit is reinvested back into the business to sustain it and cover administrative overheads, instead of being allocated toward the growth of the business. On start-up, any and all available funds must be allocated towards the growth of the business.

At ADCAP we help our clients achieve the growth they need by reducing the need to invest in primary infrastructure and by taking the administrative burden away from the Debt Counsellor, thus allowing the Debt Counsellor to focus on relationships and the growth of the business.

THESE ARE SOME OF OUR UNIQUE OFFERINGS THAT ASSIST OUR CLIENTS ACHIEVE SUCCESS: Operations Our operations are designed and optimised to streamline the flow of debt review cases from application phase to final court order and after-care. We facilitate every aspect of the debt review process with total transparency to the Debt Counsellor and consumer. Through the years we have formed very good working relationships with credit providers, which assist us to reach swift and concise agreements on repayment plans.

Systems Our systems were specifically developed to manage our operations and to promote transparency to our clients. Our systems are developed in-house, and this gives ADCAP the ability to enhance and adapt at a moment’s notice. As a direct result ADCAP can boast a 93% fee-collections success rate in the month of May 2014.

Dedicated Relationship Managers For each consumer that you as a DC take on, we appoint a dedicated relationship manager.

The relationship manager is the point of contact for the consumer, and is there to assist the consumer with any query or issue they might have, day or night. The relationship manager also liaises with the Debt Counsellor, and keeps the Debt Counsellor informed throughout the process.

086 186 7868 www.adcap.co.za

Online Consumer Portal ADCAP launched an online consumer portal that provides consumers with full access to every aspect of their debt review. For too long consumers had been kept in the dark about the progress on their debt review applications. The consumer portal gives the consumer peace of mind and ensures complete transparency with regards to payments, distributions, correspondence, queries and much more.

National Exposure One of the greatest benefits offered by ADCAP to Debt Counsellors is the fact that clients are able to take on cases from anywhere in the country. Our clients are no longer limited by geographical borders or jurisdiction. Our clients are able to guarantee the same level of quality service to a consumer whether that consumer is from Cape Town or Nelspruit.

We are confident that over the next few years ADCAP will become the number one service provider to Debt Counsellors. We are excited about the prospects and the direction that the industry is moving toward. Since inception our industry has been fraught with challenges at all levels, but through innovation and collaboration, are we able to overcome those challenges and ensure the success and continuity of our profession.

DO YOU QUALIFY FOR A NEW LOAN? If you are under financial pressure, you may want to get a new loan to help out, but do you qualify? Much depends on your current financial situation and other debt obligations. Credit Providers will assess your situation, your income, your monthly costs and other debts before deciding if you do qualify for a loan. Take our 3 step financial evaluation to find out how much you can or can’t afford.

STEP 1 How much are you earning?

Remember to add together all money coming into your household. If you get paid weekly then add all 4 weeks together. If you have several people in the house earning money, add everyone’s (monthly) income together. If you earn a salary that changes month to month use an average based on recent months. Remember to use the amount each person gets after tax and other work deductions.

Average I bring home each month after tax: Others income after taxes: Total:

STEP 2 How much do you owe your creditors each month?

Who do you owe money to each month? We are talking about loans, clothing accounts, bonds and cars, not your groceries and rent (those are essentials). How much are your creditors asking for?

Name of Creditor

Amount they want this month

Total amount I owe them

STEP 3 How much do you need to get by each month?

How much does it cost for you to make it through each month. How much are you spending on food, electricity, transport and other day to day things?

COMMITMENTS

MONTHLY EXPENSE

COMMITMENTS

Rent

Car license saving (if you were

Rates & Levies

Car Service saving

Water & Waste / Sewage Electricity

(bus, taxi etc if you don’t own a car incl. Transport to school)

Insurance

School Fees

Groceries & Toiletries & Cosmetics

School Clothes & books / stationery Saving (if you were saving a bit for

(If you have a bond put it in Step 2 not here)

(On your Life, House & Car)

saving a bit for that each month)

Petrol or other Transportation

that each month)

Snacks (at work / school) Alcohol & Cigarettes

Pocket money Monthly medication

(incl. Contact Lenses)

TV license (per month)

Banking fees

Going out for dinner, entertainment, movies, DSTV, DVD / video rentals

Newspapers & Magazine subscriptions

Telephone Landline & Mobile Phones

Alimony

Internet & Computer rental

Clothing not on account

Char / House Keeper / Nanny

Tithe (church) or Charity / Donations

Total for this column:

Total for this column:

Now add both totals together to get

THE GRAND TOTAL

MONTHLY EXPENSE

GOOD OR BAD?

Now find out if you earn enough to qualify for a new loan.

Total 1 (One month’s total income): Minus total 2 (Your debt repayments): Minus total 3 (Your living expenses): Result: SUGGESTION Due to new regulations that will soon be in effect, you need to leave some money over for emergencies (+-15 to 25%). So take a few extra Rand off to allow for that.

Money Left Over If you have money left over at the end of each month after paying for what you need to get by each month and still paying your other debts, then you will probably qualify for a loan. Though the overall value and length of the loan repayments may change, this is the figure you could repay monthly on the loan.

No Money Available - that’s why I need the loan If you have a negative figure (not enough money) then sadly, although you might need a loan, you will not qualify. If a bank or creditor does give you the money, they would be guilty of reckless credit granting.

So what do I do?

If you found out that you are spending more than you earn each month then you need to take action now, or your situation will get worse and worse. You really have 3 Options.

Option 1: You need to earn more money as a household to cover your costs.

Option 2: You need to reduce your monthly living costs.

Option 3: If your debts are too much then you should try to talk to your current creditors and explain that you are having a tough time, and want to pay a bit less each month. This will normally mean that you end up having paid a bit more over a longer time period.

SUGGESTION If that doesn’t work and your creditors don’t want to help you, then you need to go talk to a professional Debt Counsellor about debt review and find out how the courts can help you to pay less to your creditors each month. This will mean you have enough money to afford your monthly living expenses and take care of your family’s needs.

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

DEBT REVIEW WORKS One Family’s Journey In May 2009, South Africa joined the rest of the world in financial recession. Credit which had been freely granted in the preceding years contributed to many South Africans becoming over-indebted. Gerard and Jeanette Abrahams* form a part of the 45% of the country’s 18 million credit active consumers who were drowning in debt! They had 13 accounts, including loans, vehicle finance, credit cards and retail store cards that they needed to pay monthly. They were barely keeping their heads above water with both of them working, when Jeanette lost her job. With 2 children - one a semi private school and the other at Montesorri, ever-increasing food and petrol prices, the Abrahams family were taking enormous financial and emotional strain on a single income.

Their savings helped pay the bills for a few months. Then one day...they could no longer do it. They began to skip their monthly payments. The anxiety in the Abrahams household reached fever pitch! Jeanette was having sleepless nights, both she and Gerard were too scared to answer the incessant calls from creditors and their greatest fear was that the sheriff would rock up and repossess their goods.

their local paper for a debt counselling firm called Credit Matters which said they could assist in reducing monthly instalments via debt review. The ad also stated that no legal action could take place for 60 working days after they had made an application. The thought of this “financial breather” really appealed to them and they made their way to their offices.

Credit Matters immediately drew a credit report for both of them and did an extensive review of their income and expenditure. They were clearly over-indebted and were immediately placed under debt review. Within 5 days all the necessary documentation had gone out to the creditors informing them of Gerard and Jeanette’s debt review status.

Credit Matters managed to cut down their monthly instalments on unsecured debt by nearly 50% from R 7500/m to R3800/m. They also helped them develop a comprehensive budget which helped them cut costs to deal with their current financial situation. The Abrahams family were willing participants in the process of debt review and were prepared to make the necessary changes to their lifestyle to clear their debt as quickly as possible.

Jeanette stayed home and looked after Then one day in June they saw an advert in her youngest child saving the costs of the

Montessori and their eldest child moved to a government school close by. With a R3500 saving on debt repayments this family now had money left to live on. They could now afford the necessities in life like food, electricity and transport.

Credit Matters obtained a court date within 60 days of their application and their matter was soon heard in court. The magistrate granted their court order with reduced monthly repayments over approximately 42 months.

The Abrahams family religiously stuck to making their one monthly payment via the PDA. 42 months later they had finished paying all their debt and a Clearance Certificate was issued to them.

The Abrahams family now look forward to a bright financial future and life and through the debt management process they learned with Credit Matters, they are far better equipped to handle their finances.

There are many families like the Abrahams family out there. Credit Matters encourages consumers to look at the option of Debt Counselling to alleviate their financial burden.

If you work with us - we will make Debt Counselling work for you!

086 111 6197 www.creditmatters.co.za

Credit Matters managed to cut down their monthly instalments on unsecured debt by nearly 50% from R 7500/m to R3800/m.

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THE BENEFITS OF DEBT REVIEW FOR A HEALTHY MARKETPLACE

By Anton Thomas, Head of Debt Counselling Operations at Nedbank

The effects of the global recession in 2008 remain a reality for many consumers who continue to face increased financial pressure, with electricity, food and fuel prices being indisputably on an upward curve. Seven years after the recession, South Africa bleeds high levels of indebtedness and consumers are confronted with the possibility of yet another recessionary period against the backdrop of a weakening rand, rising inflation, shrinking GDP and a cycle of rising interest rates, which arguably will extend the indebtedness to unintended levels. The debt counselling profession, formalised under the National Credit Act of 2007, was introduced to ensure that rebalancing of over indebtedness in South Africa takes the best interests of consumers, credit providers and the macroeconomic welfare of the country into account.

Debt review: a coming of age The debt review process has come a long way since 2007 and Nedbank has gained a deeper insight and perspective to inform our intervention strategies, ensuring we continuously find the best possible practical solutions that support a sustainable rehabilitation process. Through our involvement at industry forums with debt counsellors, regulators, and other credit providers, as well as in running debt review engagement sessions, this experience has helped in improving our client engagement to the ultimate benefit of our clients. Nedbank has formulated and implemented various initiatives to improve debt review processes and practices, working with regulators such as the National Credit Regulator (NCR) to

ensure a stable and sustainable credit industry in South Africa. Debt counselling plays a vital role not only in the rehabilitation of over indebted consumers, but also in rehabilitating the country’s credit industry. After all, a return to creditworthiness for all means a return to healthy commerce with satisfied clients. We do our best to support indebted clients through rehabilitation; however, in the case of critically over indebted consumers we acknowledge that the mechanism of debt counselling may be ineffectual to save their situation.

The role of consumers in reinvigorating the economy The average ratio of household debt to disposable income still hovers around 74% today, with distressed consumers able to keep afloat for longer as default is delayed by access to more credit. In a shrinking economy it is vital that consumers realise their role in ensuring not only their own financial fitness, but also the continuity of business. For business to survive in this environment it is essential that creditors receive their repayments regularly and timeously, that continued vitality of trade and commerce in South Africa’s diverse marketplace is ensured and – by extension – that our economy returns to a growth trajectory.

Today, creditors and financial institutions have entire departments dedicated to the process of ensuring that debts are repaid in a manner that not only ensures the survival of the business but, more importantly, also results in client retention and an effective rehabilitation process.

Message from Nedbank Acknowledging the key role debt counselling plays in the industry, Nedbank is committed to helping its clients reduce their debt and vulnerability through the process of debt review.

The biggest challenge, when indebted, is resisting the urge to spend or incur more debt.

Getting out of debt requires great discipline and the starting point is a commitment to resolving or improving your situation. Be proactive and engage with your creditors as soon as possible to explore alternatives based on your affordability.

If this does not result in adequate relief for your situation, debt counselling certainly is a viable alternative when it is not possible to honour minimum payments. According to the bank’s research, many middle-income clients in South Africa can have up to ten loan products from different institutions, with at least four of those from a bank: typically a home loan, vehicle finance, a personal loan and a credit card. Where consumers have multiple credit exposures, with each credit provider wanting to negotiate what’s best for him or her, debt counselling helps, as it is based on credit industry negotiation, as opposed to a single negotiation. Debt counselling is also solutionbased and not just focused on short-term relief that leads to long-term pain.

With this philosophy, Nedbank has restructured over 20 000 home loans since 2009 through effective rehabilitations such as the Restructure and the Nedbank-assisted Sales (NAS) programmes, allowing families to keep their homes. NAS has helped a further 4 000 clients avoid foreclosure by appropriately valuing their homes, appointing estate agents to handle the sale and limiting the burden of any residual shortfall.

Nedbank’s Home Loans Payment Solutions website, which seeks to assist clients who are struggling to keep up with their mortgage

repayments, continues to provide viable options, outlining the impacts, benefits or limitations in various scenarios that homeowners need to consider when they are in arrears. A significant number of clients who made use of the tool and stuck to their course of action were able to recover from the difficult situations in the quickest possible time. While cutting back on consumerism is not an easy process, debt review has played a critical role in building financial fitness among South African consumers – a tenacity that will benefit society in many ways when the economy recovers.

Nedbank believes that over indebted consumers ultimately want to repay their debt obligations, improve their financial fitness and have peace of mind; debt counselling done responsibly can help them achieve this goal. One tool that empowers consumers to take control of their finances is MyFinancialLife™. This online personal financial management tool analyses a client’s current profile of expenses to suggest budgeting choices, encourages and tracks financial goal setting - and can assist distressed clients through a rehabilitation process.

MyFinancialLife™ is a first to market in South Africa and available to both Nedbank and nonNedbank clients for free. www.nedbank.co.za

BENEFITS OF DEBT REVIEW

STRESS LESS It is common to be concerned about the future, but more and more these days we seem to stress about money. When dealing with debt, it can encroach on almost every part of our day. We wake up after a poor night’s sleep and instead of looking forward to the day, we have a feeling of dread. We worry; will our family have enough to eat? Will we be able to pay for school fees? Will we have enough petrol to get to work? Then when at work, rather than focusing on the task at hand, our mind wonders to thinking about how we’re going to get out of the financial hole we are in. When we see an unknown or private number on the phone we get a sinking feeling knowing that it is probably another collections agent insisting on payments. The threats of legal action and demands for immediate payment, of money we don’t have, weigh in on us. Heading home exhausted, rather than being happy to see our family, we worry about which bills have arrived during the day. All that leads to a meagre dinner and another sleepless night with pains in our chest and gut as we can’t stop thinking about who to pay, with what money at the end of the month.

A step in the right direction is to make a plan.

However if we are unable to cut our expenses any further, and are not able to earn more money, then what can be done?

Going to a Debt Counsellor to talk about our situation is a great first step in dealing with the stress we face. Just like going to the doctor when we are sick does not cure us immediately, so too talking to a Debt Counsellor doesn’t instantly fix our situation, but it is a good start!

Getting help from a professional with a fresh perspective and new suggestions is a great help. Then, when the Debt Counsellor comes back to us with a repayment plan which they are submitting to the court and it allows us to not only pay our debt, but more importantly take care of our family’s needs, it is pure joy.

Now we have a manageable road map to responsibly meeting our family and debt obligations.

For the first time in months we get a good night’s sleep, we go to work knowing that at the end of the month, we will be one strep closer to paying off our debts. We eat less junk food and begin to exercise. We feel purposeful In such a situation it is natural to feel stuck and because we are accomplishing something, begin to doubt our own self-worth or to feel going somewhere. There is light at the end of hopeless. Often the feeling of hopelessness the tunnel. comes because we have no long term plan for the future. We try to ignore the issue and So, stress less and talk to a professional Debt distract ourselves, but the problem remains. Counsellor about your situation.

BENEFITS OF DEBT REVIEW

SAVE YOUR FAMILY Debt places real strain on a family. It increases stress among parents who often argue about money, and this has a negative impact on children in the home. Often husband and wife blame each other for debts acquired and resent the burden this places on the family.

Many end up lying to each other about their true financial situation. This leads to guilt and a loss of trust between partners. Most couples seeking a divorce, point to financial problems and disagreements about money being the largest contributing factor in the breakdown of their marriage.

Anxiety and depression in both husband and wife are a common result of debt stress.

Children are also adversely effected as debt stressed parents often spend less time with their children. For some families who do not have enough money to pay all their debt and to cover their debts, getting further and further into debt seems to be the only short term solution. Many are unable to cover essential expenses, such as medicine, school fees or insurance. This can then place even further strain on the family.

Even extended family feel the emotion strain that comes from dealing with family members who are in debt. While wanting to help, they too may resent having to contribute towards others commitment, debt for loans and credit that they never got to enjoy the benefit of.

What can be done?

When dealing with debt, many families fall

into the trap of blaming one another, talking about “your” debt and “my” debt, rather than seeing the debt itself as the problem. Working together as a family against debt as a common enemy, can in fact bring families closer together than ever.

By going to a trained professional Debt Counsellor who deals with debt on a daily basis, and getting help through the debt review process many families have saved their marriages. A Debt Counsellor can negotiate deals with creditors which consumers seldom can with collections departments. Taking a proposal to Court provides legal protection for consumers and puts in place plan to deal with the debt. Having a well thought out plan in place for repaying debt over time, immediately reduces stress on both husband and wife. This means less arguments about money, and no need to be deceptive with one another.

Families under debt review commonly spend more time together. Though the debt remains, it is kept in it’s proper place.

Being able to cover all necessary monthly household costs also removes a huge source of stress for families. Knowing that if they stick to a budget each month, they will be able to pay for necessary medical costs or vehicle maintenance is a source of comfort. Families can then work together to conquer their debt, which will bring them closer together.

So, save your family and talk to a professional Debt Counsellor about your situation.

HOW THE NATIONAL CREDIT AMENDMENT ACT BENEFITS YOU The National Credit Act (NCA) has been amended by means of the new National Credit Amendment Act. We look at some of the benefits to consumers, both in and out of debt review.

Prescribed Debt [NCA Section 126] If you owe a creditor money and stop paying them, then they have a legal obligation to try collect from you within a relatively short time period. Generally speaking this is a period of three years. If during the three years you do not pay them and they do not take you to court then the debt becomes “prescribed”. In the past, if you then later (even years later) paid a few rand toward the debt at any point it reset this period of three years. This was an issue because many credit providers would take their old debt and sell it to collections firms or attorneys for a fraction of the supposed value and then the collections firm would try to get consumers to reactivate the debt by making a payment. Sound familiar? One day you get a call about a debt from back in the 90s and are asked just to pay ‘a few rand’ to ‘sort out’ the problem. So you do, just to make them go away believing that to be the end of it. Next thing you are being harassed for payments or even taken to court for the debt. Now due to amendments to the NCA it has become illegal

and a punishable offense for companies to buy and sell these old debts and then try collect on them. If someone calls you about debt like this, get their details and report it to the NCR. NCA Section 129 Letters When you owe a credit provider money and begin to fall behind on payments, they will at first try to convince and encourage you to pay by messaging and calling you regularly.

This can be stressful but in legal terms is not a very dangerous place to be, since half of the country’s credit active consumers are right there with you. Should collections calls fail and the credit providers realise you wont pay they will then send you a letter in terms of Section 129 of the NCA. This letter is much more serious and will use the words “section 129” somewhere in the body of the letter. The letter will direct you to: firstly settle the arrears on the account or alternatively if you have a dispute about the account refer it to someone like an alternative dispute resolution agent (ADRA). The letter will also tell you that you can

Registration of PDAs and ADRAs There was previously no mention of Payment Distribution Agencies in the NCA. This has now been changed and the amendments make the proper registering of a PDA a requirement.

It also allows for standards to be set in place for PDAs to meet. This adds protection for consumers choosing to repay creditors by paying via a PDA.Many consumers have been mislead into some form of alternative debt mediation over the years by those claiming to be ADRAs. Now the amendments make it clear Termination of Debt Review that these organisations need to be officially [NCA Section 86(10)] In the past, this section of the NCA was very registered and meet standards of registration abused by some credit providers to try remove and that they also be licensed to practice. This people’s accounts from the debt review process. will prevent people from offering debt review They would then go out and start a second line services without being registered as a Debt of legal action at the same time as the debt Counsellor and bring added protection to review matter was going to court. This created consumers. extra work for all parties and lots of stress for consumers. The amendments now make this Removal of Adverse impossible as long as the debt review matter is Consumer Credit Information set down at court or before the National Credit Among other things the amendments have put in place arrangements incentivise consumers to Tribunal within a reasonable time frame. pay off past judgements. Once they have done so the onus is now put on creditors to have Clearance Certificates this information removed from the consumers [NCA Section 71] Whereas before, the actual wording of the credit bureau profile. This reduces costs to the NCA made it seem as if a consumer who had consumer and improves their credit score. entered debt review would have to pay every single cent of all their debts back before they There are many other benefits to consumers could leave debt review, the amendments and the credit industry from the National Credit have now made clear allowance for consumers, Amendment Act 2014. These are just a few of who have settled a lot of their debt and who the good things that have come consumers are able to financially meet their monthly debt way as a result of the changes. obligations, to leave debt review and be issued a clearance certificate. This means they can reenter the credit market more swiftly and not have to ridiculously wait decades to settle their bonds under debt review. refer the matter to a Debt Counsellor. The Debt Counsellor can then help you resolve your overall debt problems. In the past a numbering issue in the NCA resulted in some accounts not being included in a debt review even though a consumer had just received a letter essentially saying “go see a Debt Counsellor�. Now if consumers act swiftly when getting this letter they can have all their debts dealt with via debt review.

ONE PAYMENT FOR ALL YOUR DEBT MAKES IT EASIER TO REGAIN FINANCIAL CONTROL Keeping up with your debt re-payments can be an administrative burden. Many consumers fall into the debt trap because they lose sight of all their debt and before they realise it their debt repayments outstrip their income. According to the National Payment Distribution Agency (NPDA), consumers who apply for Debt Counselling have on average eleven creditors that they need to pay. Remembering who needs to be paid, what amount they need to receive, and by when, can in and of itself be very complex and stressful.

Payment Distribution Agencies (PDA’s) are independent companies accredited by the National Credit Regulator (NCR) who are authorised to collect and distribute money for over-indebted consumers. The primary benefit that PDAs provide is that they collect one payment from you and then distribute the money collected to your various creditors according to the debt re-payment plan prepared by your debt counsellor. Besides the convenience that a one-payment solution provides, there is also a meaningful saving in debit order transaction fees associated with one-payment.

PDAs are there to make life easier for you and your Debt Counsellor, saving time, money and ultimately protecting you. The NCR’s 2012/2013 annual report indicates that approximately 83 000 consumers applied for debt counselling during the year. The amount of monies distributed by PDAs to credit providers on behalf of consumers equalled

R2.96 billion that year. Payment Distribution Agencies, like the NPDA have excellent creditor relationships and often step in to assist both Debt Counsellors and consumers find solutions that are acceptable to all. So, as a consumer you know you are not alone, both your debt counsellor and your PDA have your interests at heart.

The NCR regularly audits and renews the licenses of PDA’s in the industry, ensuring compliance with strict guidelines, whilst adhering to Reserve Bank regulations. PDA’s are expected to keep comprehensive audit trails of all transactions and provide detailed monthly statements and reports to consumers, the NCR, creditors and Debt Counsellors. All this ensures that your money is being handled properly.

PDA’s also ensure that your debt re-payment plan is stored and correctly administered, validating transactions according to banking rules.

The recently passed National Credit Amendment Act formally added PDAs to the Act. This decisive confirmation of the valuable role that PDAs play in ensuring the success of the debt review process, ultimately makes life easier for you and helps you regain financial control.

When selecting a PDA, you should ask the following questions: 1) What additional services and protection do they offer to help me on my debt counselling journey?

2) Will they help me resolve payment enquiries with my creditors?

3) Do they have a trusted relationship with my Debt Counsellor?

4) How have they helped consumers in the past?

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DEBT COUNSELLOR PROFILE

BEVERLEY LUDICK How long have you been a DC? Since 2009.

What did you do before becoming a DC? From 2001 I worked for attorneys dealing only with Administrations. I became an Admin Consultant and never looked back. I started my own Debt Review Company in 2009.

Why did you become a DC? I became a DC because it was the one thing I knew best and over the years my passion grew as I realised what big a difference it makes in people that find themselves in financial difficulties’ lives. I am not only helping people with their finances but with their emotional well-being as well. I enjoy the look on my client’s faces tremendously when they realise that they have found relief.

What area of SA do you practice in?

Our offices are situated in Pretoria Gardens, a very down to earth part of Pretoria with really honest hardworking consumers that live here.

Do you have a sml/med/lrg DC company?

We run a small company that is growing quickly however, with that being said, we are still able to provide excellent one on one attention to all our clients.

What makes your business a success?

Word of Mouth is telling us that we give very personal and professional service and that our clients feel that we do not handle them as” just another number” on the system. Part of our success comes from thinking outside the box when a troubled consumer comes in for a consultation. We really try and use initiative when consulting with clients by exploring every possible option available and we know we have done our job well when they walk out smiling. Many hard working consumer are over indebted because of paying old debts with new credit so our consultations will often last up to 2 hours patiently educating consumers and making plans with them. We offer credit checks and even sequestration were it is needed. We also offer Administration orders at a very low monthly fee. Whereas administrators usually take between 12.5 - 22.5% from the consumer’s monthly creditor payments we don’t.

What is the biggest challenge facing DC at the moment?

Keeping up with the Act being changed every now and then and then still not being clear around some issues we, as DCs, have.

My humble opinion herein is still that the Administration act should have been altered instead of writing a whole new act.

What is the biggest challenge facing your consumers at the moment?

Consumers don’t always realise the seriousness of defaulting on their debt review payments and it can lead to aggressive legal steps which they then choose to ignore because they think the debt review will protect them. Here at ObligCo we always remind new and current clients of this fact.

What advice do you have for consumers under Debt Review?

Very easy: Do not default on your debt review.

Debt review is like a cage keeping your creditors Where do you find new business? locked in. Every payment you skip or short We do not find new business, it finds us. payment you make, the bars of the cage get Who are your most co-operative and least co- weaker and after a few skipped payments they come for you like hungry wolves and nothing operative credit provider at the moment?

We are very thorough when obtaining the can stop them. Making regular monthly necessary information needed from any credit payments will help make your case in court like provider by making use of all the methods of a solid brick wall without any holes. communication when requesting it. The new or less experienced credit providers that do not know the process or simply those who do not Tel: 012 377-3557 have a working system in place for debt review Email: obligco@gmail.com Email: dc@obligco.co.za proceedings are by far the least co-operative. www.obligco.co.za

THE DEBT REVIEW AWARDS GALA The Debt Review Awards 2014 Gala was held on the 19th of July 2014 in Cape Town. The actual Awards were handed out at the red carpet event held in the historic 6 Spin street building at the foot of the Parliament buildings opposite the former ‘slave tree’ in the heart of Cape Town.

Those working in the industry, including those nominated, came from across South Africa to enjoy the first event of it’s type. Normally those working in the debt review industry are stuck behind a desk, typing emails, making calls and hard at work helping consumers get out of debt.

It was thus a real change of pace for those attending to dress up and simply enjoy an evening of informative speeches and award presentations. The food and company were great and the gift bags filled with generous gifts from sponsors.

Some of the Red Carpet photos as guests arrived at the gala looking very fancy.

The Golden Piggys. The piggy bank is a commonly accepted symbol of saving world wide. Debt review is doing it’s part to save credit providers fund and consumers. In a light hearted touch each Award winner announcement started with the phrase : “And this little piggy goes to...”

The very first Award ever went to Hyphen Technologies (the Payment Distribution Agency) in the public voting section.

Some of the Winners on the evening Awards were handed out in both the public voting (for consumer’s and the industry’s “favourite”) as well as in the Industry Panel voting.

Consumer Friend accepting their Award in the large Retail Credit Provider category.

FOR MORE PHOTOS OF THE EVENING CLICK HERE:

Debt Counsellors of all sizes were recognised such as Adri de Bruyn (an AllProDC member) , Ancil Van Heerden (a DCASA member ) , Consumer Debt Help and Philippa Davis (a BDCF member).

Paul Slot of DCASA

Consumers too received Clearance Certificates

The Event was sponsored (or supported)

by ADCAP, Hyphen, Nedbank, FNB, Credit Matters, DC Partner, DCM, ONE, Steyn Coetzee, Maximus and DCASA

The big winners of the evening were FNB, Mr. Price, DCM, Wesbank, Debtsafe and DebtBusters. In the end each of the PDAs walked away with awards in different categories.

The Kiss: Some winners were moved with emotion when their names were announced

FOR MORE PHOTOS OF THE EVENING CLICK HERE:

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

2014

With the National Credit Amendment Bill the National Credit Act is changing.

Make sure you have an up-to-date copy of the National Credit Act. Pre-order your Revised National Credit Act Booklets now

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

DEBT COUNSELLORS ASSOCIATIONS ANNOUNCEMENT BOARD Any idea how many hours you spend per Debt Review or what the cost is of one Debt Review case? DCASA has completed the DC FEE Review and the results will be announced at the DCASA Conference.

Edward Nathan or Sonnenbergs in trouble: criminal charges have been laid against a senior attorney at the giant lawfirm, Edward Nathan Sonnenbergs

Meeting dates: 24 July: Free State Meeting at Shawu Lodge in Bloemfontein.

20 August: DCASA Annual Conference.

For more information on meetings in your area, contact DCASA at 086 143 2272 or send an e-mail to dcasa@dcasa.co.za.

www.bdcf.co.za

Congratulations to our member Adri de Bruyn who won the Industry Panel Award for DCs at the 2014 Debt Review Awards.

SU

We met with Capitec to discuss turn around times and clearance certificates. Also we covered the cancelling of Debit Orders. Capitec assured us that they do & will cancel debit orders within 3 days as long as a suitable Power of Attorney is attached to the request. Re: proposals: Capitec want repayment proposals in line with what % portion of the consumer’s debt repayments they were meant to be getting before the debt review. Capitec were very happy to offer assistance in our member training program and are eager to be involved.

www.newera.org.za

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www.dcasa.co.za

www.allprodc.org

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JULY

NEWSLETTER Debt Review Awards Congratulations to all the Winners at the Debt Review Awards Gala. We would also like to say congratulations to our own Adri de Bryun who walked away with the prestigious Debt Review Award for Small/Boutique Debt Counsellor.

Well Done Adri!

Gauteng Courts and Service of Debt Review Applications After DCs sending notice of court applications for debt review to all parties via email for years, the Gauteng Magistrates Courts have now placed an additional burden on consumers and demanded service by the sheriff. This means that consumers have to carry the extra cost. Fortunately service can be done by the sheriff via email (if the other parties have given consent - which almost 99% have) but it is still an additional cost and take time. We want to stress the importance under the new National Credit Amendment Act (which will hopefully soon be in effect) of having your matters set down within 60 day to protect the consumer from possible termination abuse. These new requirements in the Gauteng area cause a further delay and thus could put the consumer in harm’s way.

CIF The Credit Industry Forum are now focused in on DCRS and issues surrounding insurance on accounts. We are making submissions and appreciate everyone’s help. We want to give a special “Thank You” to Gerald (our NEC member) who has been attending these meetings (and carrying the cost of that) and representing the Alliance. He is making sure our members voice is heard.

Also be sure to include certified copies of any document which is not the original (more time taken). At present we are seeing this issue in the Randburg, Daveyton, Germiston and Johannesburg Courts but it is spreading. We have approached the NCR about the matter but have not yet heard back from them.

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

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Cell: 082 776 9280 1 Petrus van Blerk Street Fax: 086 508 5444 Heuwelsig Tel: 051 436 4515 Bloemfontein Email: dc@zunecoetzer.co.za www.zunecoetzer.co.za Skype: zune.coetzer Twitter: @zunedc Facebook: www.facebook.com/zune.coetzerdebtcounsellors

Alberton 011 868 1185 Soweto 011 984 3790 Nelspruit 013 755 1842 Durban 031 301 7640

www.mzansidc.co.za

Maximus is a comprehensive online debt counselling solution software package that offers it’s users the best yet cost effective, integrated debt counselling experience.

Life isn’t about waiting for the storm to pass, it’s about learning to dance in the rain.

95% success conversion rate (Instruction to Order) TELEPHONE 011 451 0080 EMAIL support@maximus.zendesk.com

7 Chenin Blanc Street, Oude Westhof Welgemoed, 7530 Office: 021 913 2514 Fax: 086 607 0940 Email: frontdesk@liddles.co.za

The Debt Counselling Industry Portal the truth about the industry www.thedci.co.za

Does your Debt Counsellor belong to a professional association such as:

Chris van der Straaten 082 557 0437

SERVICE DIRE DEBT COUNSELLING AA Debt Counselling Centre Anthea Johannes NCRDC531 Tel: +27 (0) 21 982 0522 Cell: +27 (0) 84 402 7032

Financial Synergy Group Credit Awareness & Rescue Services DEBTINC 0861 20 21 20 enquiry@debtinc.co.za Financial Planning & Growth CONFIDO 022 713 20 21 planning@financialsg.co.za Legal 012 643 1423 legal@financialsg.co.za Employer Group & Wellness Services 012 643 1423 wellness@financialsg.co.za

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

Cape Debt Clinic Your Guide to Financial Wellness and Recovery Karin Augustyn 021-828-2658 073-903-6942 karin@capedebtclinic.co.za https://www.facebook.com/pages/ Cape-Debt-Clinic Central SA Debt Counsellors 082 950 7806 Fax: 086 563 1621 Consumer Assist Tel: 0861 628 628

Call Centre Services 0861 20 21 20 reception@financialsg.co.za Credit Matters South Africa’s Largest Debt Counsellors 14th Floor, The Pinnacle Cnr Strand & Burg St Cape Town Tel: 086 111 6197

Fax: 021 425 6292 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

Debt Budget MAXIMISE YOUR LIFE, MINIMISE YOUR DEBT Bruce Leslie Borez Registered Debt Counsellor NCRDC1643 48 Church Street “Medical Mews” Wynberg, Cape Town Tel: 021 824 8885/021 820 4946 Fax: 086 607 6429 www.debtbudget.co.za

DebtSenseGroup

For Professional, Responsible and Effective Debt Restructuring Services

John Harvey NCRDC 1370 Newcastle – KZN Tel: 034 312 1767 Fax: 034 315 3441 Email: debtsense@newcastle.co.za Web: www.debtsensegroup.co.za Debt Solve Debt Counsellors Office: 033 397 0945 DebtSafe 0861 100 999

ECTORY Debt Serious We are serious about debt Vida Scheepers NCRDC1792 Po box 394, Garsfontein, Pretoria 0042 Fax no: 086 553 9403 vscheepers@mweb.co.za

Debt Therapy Hans Pettenburger-Perwald NCRDC49 Tel: +27(0) 21 556 4935 Fax: +27(0) 21 556 4937 Toll Free: 0800204728 Cell: 0823358232 www.debt-therapy.co.za Email: info@debt-therapy.net Debt Rehab Colleen Van Wyk(BCom, LLB) Debt Counsellor NCRDC2619 Tel: 083 290 0848 Tel: 011 740 7374 Fax: 086 716 9694 Debt eezy Your Debt Solution made Easy Ashley Carstens NCRDC858 Tel: 021 839 2809 Fax: 083 512 4160 / 086 665 9125 Email: debt.eezy@gmail.com Website: www.thedci.co.za

The best angle to approach debt is the Triangle 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

Debt Management & Counseling Services “The greatest glory in living lies not in never falling, but in rising every time we fall.”

- Nelson Mandela Derry Burge NCRDC108 140 Irene Avenue, La Concorde, Somerset West, 7130 Tel: 021 855 5997 Cell: 074 177 5375 Fax: 021 855 1195 or 0865413200 E-mail: dburge@telkomsa.net 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

Caledon - Western Cape Contact Person: Yolande 8 Hoop Street, 7230 Caledon caledon@triangletrust.co.za Tel: 028 212 2537 Ceres - Western Cape Leyll str 61, 683 Ceres andre@triangletrust.co.za Tel: 023 312 1292 Fax: 023 312 2119 Worcester - Western Cape 71 Porter Street 6850 Longitude: 19.44305 Latitude: -33.64942 worcester@triangletrust.co.za Tel: 0233420576 Fax: 086656801 Bloemfontein - Free State 94 Zastron, 9301 Bloemfontein Contact Person: Yolande bloemfontein@triangletrust.co.za Tel: +27 51 448 2828 Fax: +27 51 447 9481 Viljoenskroon - Free State 35 Denyssen Street, 7230 Contact Person: Johann Olivier viljoenskroon@triangletrust.co.za Phone: +27 56 343 0352 Fax: +27 56 343 035 Welkom – Free State 329 Stateway, 9460 Welkom Contact Person: Susan Roux Email: welkom@triangletrust.co.za Tel: +27 57 352 6117 Fax: +27 57-352 2355

SERVICE DIRE Help-U-Debt (Potchefstroom) Madra 083 390 3275 Fair Finance Solutions Your debt is our priority Amanda Fair Registered Debt Counsellor NCR946 553 Jacqueline Drive Garsfontein Pretoria Tel: 0861 26 26 32 Fax: 082 921 7093 Cell: 086 564 3674 amanda@fairdebtcounselling.co.za www.fairdebtcounselling.co.za Fincorp debt Counsellors cc Cecilia Zwarts fincorpdc@yahoo.com

Finesse Debt Counsellors NCR Registration No: DC1262 Address: 478 Windermere Road, Morningside, Durban, 4001 Phone: 031 209 2356/ 084 250 2356 / Fax: 086 5732433 e-mail romie@debtfinesse.co.za www.debtfinesse.co.za

Help-U-Debt (Parys) Marilouise 082 920 6249 Help-U-Debt (Vanderbijlpark) Herma 083 320 8303 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 Christina Cambouris NCRDC1403 Strand Western Cape Tel: 0824507459

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

Mzansi Debt Counselling Octavia Hlatshwayo Tel: 011 868 1185 Fax: 0861 00 22 70 octavia@mzansidc.co.za www.mzansidc.co.za

NCR DEBT (PTY) LTD National Counselling and Review of debt Amelia Hayward Tel: (012) 364 2490 Cell: 0877 201 057 amelia@ncrdebt.co.za www.ncrdebt.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

New Deal Debt Counselling Jason Riley (NCRDC868) B.Com (Financial Management) Cell 0723792108 Fax 0866628789 info@newdeal.org.za www.newdeal.org.za SFA Debt Relief Consultants Adri de Bruyn NCRDC998 11 Market Street / Markstraat 11, Paarl, 7646 Tel: 021 872 1968 Fax: 021 872 2678 adri@sfadebtrelief.co.za

ECTORY Specialist Debt Management Centre Beverley Ludick NCRDC948 Pretoria Tel: 012 377-3557 Email: obligco@gmail.com Email: dc@obligco.co.za www.obligco.co.za

Penny Wise Debt Counselling Cathy Foster Debt Counsellor - NCRDC1977 Tel: (011) 794 9912 Fax: 086 719 3378 Mobile: 083 298 4467 Email: cathy@pennywise.co.za www.pennywise.co.za Rihanyo Debt Counselling (012) 804 50 57 Think Green Debt Counselling Sandi Pauw sandipauw@mweb.co.za Tel : 012 991 6638 Cell : 082 460 7800 Fax : 086 219 2615 U-Win Debt Counsellors Coreli Roos - NCR DC 509 Aliwal North, Burgersdorp, Bethulie, GariepDam, Smithfield, Springfontein Cell:079 626 66241 croos@global.co.za

Zuné Coetzer Debt Counsellors NCRDC 1599 24 van der Stel Street, Dan Pienaar Bloemfontein Tel: 051-4364515 Fax: 086 5870 845 Email: zunecoetzer1@gmail.com

SUPPORT SERVICES Staff Line Ndizani Executive Recruitment Cell: 083 3028163 Tel: (011) 468 - 2150 saki@staffline.co.za

TRAINING Compuscan Academy 0861 51 41 31 www.compuscanacademy.co.za You & Your Money NCR ACCREDITED DEBT COUNSELLOR TRAINING COURSES: Training and mentoring since 2007 Want to make a contribution as a registered debt counsellor?

Need to empower and upskill staff in your debt counselling business?

Courses devised to suit all needs: Flexible timeframes to accommodate workflows.

On site/inhouse training for staff.

Contact Dawn Jackson Dawnjackson.training@telkomsa.net

Cell: 072 1769789 Information resources & services www.thedci.co.za Designtimes South Africa’s creative resource www.designtimes.co.za

FINANCIAL ABSA Customer Debt Repair Line 0861 005 901 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

SERVICE DIRE 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

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

LUCID Attorneys Tel: 011 880 1100 Fax: 011 880 1101 Email: info@lucidsa.com www.lucidliving.co.za/attorney

FINANCIAL PLANNING Eric Streso Financial Planner B Juris LL B CFP MBA Tel: 0833273358 Fax: 086 612 7912 LEGAL

Gooseberry Business Advisory Tel: 012 644 0589 Nedbank Debt Rehabilitation & Recoveries Services 0860 109 279

Liddles & Associates “It always seems impossible until it is done” N. Mandela Tel: 021 913 2514 Fax: 0866070940 Email: info@liddles.co.za PO Box 3407, tygervalley, 7536 7 Chenin Blanc Street, Oude Westhof

O’Connell & Associates Attorneys at Law Keegan O’Connell k.oconnell@oalaw.co.za Tel 021 462 1663 Fax 0866 504 550 303 Millborough, 70A Upper Mill Street, Vreedehoek, Cape Town, 8000

Karen van Staden Tel: 012 998 9117 / 012 993 2132 Fax: 086 721 6467 / 086 662 1153 IsEmail: it time karen@hauptearle.co.za to expand your Debt Counselling practice? office@hauptearle.co.za www.hauptearle.co.za Do you need specialist Attorneys with a national footprint?

Do you need expert advice on how to protect your practice and your clients?

ECTORY 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 16th Floor, The Pinnacle Cnr Strand & Burg St Cape Town Tel: 021 431 9127, f: 021 425 0875 Email: oliver@rmbrown.co.za Scheepers Attorneys Gerhard Scheepers schlaw@iburst.co.za

Steyn Coetzee Attorneys / Prokureurs Adri de Bruyn 11 Market Street / Markstraat 11, Paarl, 7646 Tel: 021 872 1968 Fax: 021 872 2678 adri@steyncoetzee.co.za

CREDIT BUREAUS

Thinus Dreyer Candidate Attorney Office: 011 326 0347 Office Cell: 071 658 9438 Cell: 082 471 3625 Fax: 086 509 3548 thinus@stokesattorneys.co.za Thomson Wilks inc.

Meet Thomson Wilks Meet Excellence Tel 021 671 6935 / 021 820 4319 / 021 424 4599 Cell 072 554 0935 Fax 086 570 8741 Website www.thomsonwilks.co.za Suite 14, 3rd Floor, SunClare Building, Dreyer Street, Claremont, 7708 The Chambers, 3rd Floor, 50 Keerom Street, Cape Town, 8001 Agiliti CC Colleen Van Wyk(BCom, LLB) Tel: 083 290 0848 Tel: 011 740 7374 Fax: 086 716 9694 Website: http://agiliti.co.za

Compuscan 0861 514 131 www.compuscan.co.za Experian www.experian.co.za Consumer- 0861 10 5665 TransUnion 0861 886 466 www.transunion.co.za XDS 0860 937 000 www.xds.co.za

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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