Debtfree DIGI Magazine - July 2016 by Debtfree Magazine

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

July 2016 www.debtfreedigi.co.za

What you can expect from Hyphen PDA: • Increased Debt Counsellor Profitability • Flawless Systems • Meaningful Reporting • Contented Consumers!

Chris van der Straaten, Head: PDA 082 557 0437

Malcom Povey, Head: Operations PDA 082 445 5604

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Professional Debt Counselling Attorneys

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CONTENTS NEWS

DEBT REVIEW AWARDS

BUILDING A SOLID Ubisoft Give DEBT COUNSELLING Away FREE GAMES PRACTICE

DROP Workshop

SERVICE DIRECTORY

EDITOR’S NOTE Don’t you hate getting up when it is cold and miserable? Some mornings in winter you just want to curl back up and pull the covers over your head rather than face the cold outside your bed. Well, truth be told that even happens in summer but it is definitely harder in winter. Not to mention that with winter comes higher electricity bills which don’t help. Transport costs go up as well. Not just because petrol went up but because where we may have walked before now we have the urge to ride. And when you’re cold your brain tells you it is time to eat more. No wonder winter fat is a real thing. The cold aside though, things have really been hotting up in debt review. It has been an exciting few weeks since our last issue. The big event for the Debtfree team was the annual Debt Review Awards that saw SBSA, Hyphen, Consumer Friend and the IDM Group take home some of the big awards. Debtfree help organise the peer review process (which decides who wins) and help organise the red carpet gala evening where the announcements are made. Everyone looked so snazzy and we have a full report on the fun and excitement of the evening. Thanks again to everyone on our team for their great work. This issue we also consider news effecting the industry (like how some credit providers got arrested) and have a look at a new court case ruling which helps define what courts

want from consumers and Debt Counsellors with regard to debt review applications. It will make a difference in your life whether you are a consumer, credit provider or DC so be sure to check it out. If you have been feeling to cold, too tired and too down to hop out of bed in the morning (seriously who actually hops??) then like the rest of us maybe it just takes a nice warm drink and some time to get up to speed. After all once you are up and about it is hardly as bad as we imaging it to be while hiding in bed. Debt review can be the same. At first you just want to forget about your debt and ignore it, like a new day interrupting your sleep. However after a short while of being in the process you start to benefit. As things move along and the balances start to drop you get a feeling of actually accomplishing something and all the while you are no doubt saving lots of fees and interest thanks to concessions from creditors. Yes, debt review is about shifting focus from desperate right now to a bright and warm future free from debt stress. It’s about taking back control and we hope this issue of Debtfree helps you get a small boost to your day as you look ahead to being debt free.

We are very proud of the achievements of Hyphen PDA at the 2016 Debt Review Awards. Simplicity Debt Counsellor Software is a Hyphen PDA Business Partner.

“ 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

INDUSTRY

CONSUMER

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

July Petrol Hike Got you Down? Hang on For August

Consumers and businesses were hard hit by yet another petrol price hike in July. Though petrol only went up by about 11 Cents, this was added to the April, May and June increases making Petrol in July cost about R1.60 more than in March 2016. The good news is that there is talk of a decent drop in petrol prices in August 2016 of as much as 83 Cents/litre dependant on how the Rand is doing at the time.

NCR Warn Not To Add Extra R10 Service Fee

The NCR have issued a circular saying that they are aware that some credit providers have been adding an extra R10 to consumers monthly credit account fees (after the new DTI published R60/month rate came into effect). They have pointed out that the new rate applies to new accounts after May 6, 2016 only. This would also apply to consumers under debt review before that time. Where creditors have started incorrectly adding this fee the NCR warn they will take action.

very serious default (havenâ&#x20AC;&#x2122;t paid for 3 months or more) a large number of consumers are still desperate to use credit. Of the 11.85 million applications for credit during the 3 months reported on over half of the applications were turned down by the banks and other creditors because they viewed the consumers as too risky or that they could not actually afford to repay the credit. This stat may have a lot to do with the new more stringent regulation requirements for assessing a consumers financial situation. If a consumer finds themselves turned down for credit for these reasons, rather than running out and trying to get more credit elsewhere, they should turn to a professional Debt Counsellor to help them get rid of all their debt altogether.

Changes at Consumer Friend & Their Clients

Consumer Friend has been making some adjustments in an effort to provide improved service to the industry. One of the big changes has been adjustments and an overhaul of their telephone system (which has been somewhat â&#x20AC;Śtemperamental in the past). This and other upcoming innovations are being put into place by new team members. Things have also been changing with some of the companies that NCR Stats Show Less People Consumer Friend represent: Capfin Loans are now going to be known as Century Capitol Qualify For Credit The Recent credit report from the NCR has Loans, JDG Trading have become Pepkor shown that though a few less people are in very, Trading and JD Consumer Finance is now

NEWS CONTINUED Century Capitol. If it seems confusing all DCs have to do is check closely what the CoBs from Consumer Friend say and quote these entities in any court applications. For the most part the changes will have little impact on the process other than different names on some papers. Consumer Friend was one of the big winners in this yearsâ&#x20AC;&#x2122; Debt Review Awards.

NCR Website Seems Fine

During July 2016 the NCRâ&#x20AC;&#x2122;s website became a scary place. Visitors who went to visit were warned that the site was infected with malware that wanted to infect their computers and that they should not go onto the website. The issue has since been resolved and you can now visit the site without any scary red warning screen.

SBSA & DCRS Acceptances

Standard Bank (SBSA) have reminded Debt Counsellors that they will only be willing to send a final acceptance letter for a DCRS proposal (a computer system that shows the way credit providers suggest debt be restructured) if the Debt Counsellor send them (SBSA) an acceptance letter for the DCRS proposal the Debt Counsellor sent them. If the Debt Counsellor sends SBSA an acceptance letter for the proposal they made via DCRS then SBSA will send back an acceptance letter of their own.

Send The Sheriff

SA Taxi have recently began corresponding with Debt Counsellors telling them that they want to have any court documents served on them via the Sheriff of the Court. This is an

option (along with service via registered mail) that all parties have under the Magistrates Court Act. Most credit providers chose to have service via email since this is faster and saves consumer money.

Credit Providers Arrested

The NCR recently joined the SAPS in raiding 10 credit providers in the Northern Cape. The raids turned up several illegal activities such as keeping consumers ID books, ATM cards and SASSA cards. As a result 4 of these naughty credit providers found themselves under arrest for breaking the law. The NCR recently conducted a workshop for Debt Counsellors and Credit Providers in the Northern Cape. The NCR also took the opportunity to pop past several companies and individuals who had formerly been registered with them (but had not paid to renew their registration) to check that these firms were not still operating without being registered. The arrested credit providers will face not only the cops but also the NCR will take these matters to the National Consumer Tribunal and fines and deregistration may follow. The NCR recently announced that they are not only investigating smaller credit providers but even the (now defunct) old African Bank.

2016 Debt Review Awards

The annual Debt Review Awards recently took place in Cape Town. Big winners on the night were Hyphen PDA, Consumer Friend, Standard Bank and the IDM group. The awards were based on an industry wide peer review. Read More about the 2016 Annual Debt Review Awards in this issue: HERE

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NEWS CONTINUED

20 Years of Insurance

ONE|SURE offer consumers under debt review special insurance to cover their debts. Credit providers want to have their debts insured in case something happens to their clients. This is why they offer insurance when consumers take out credit. However many times the insurance that comes with credit agreements is actually quite expensive and consumers donâ&#x20AC;&#x2122;t realize they could be paying less. ONE|SURE provide consumers with replacement insurance and offer lots of additional benefits like covering debt review repayments for many month should a consumer under debt review lose their job. 2016 sees ONE being in business for 20 years, showing how stable the brand is. They work together with Mutual & Federal which is of course another very well known insurance brand. At the 2016 Debt Review Awards the ONE|SURE and M&F sponsored two amazing prizes for people making a significant contribution to the industry. More about that in this issue.

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

THE ANNUAL DEBT REVIEW AWARDS 2016 NEXT

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THE ANNUAL DEBT REVIEW AWARDS 2016

The annual Debt Review Award gala took place in a surprisingly pleasant mid-winter Cape Town. Guests from around the country attended to find out the results of an industry-wide peer review into how well Debt Counsellors, Credit Providers and PDAs are doing. The results had long been anticipated and many golden piggys found themselves new homes as the winners were announced on the evening.

Big winners on the night included Standard Bank, Consumer Friend, the IDM Group and Hyphen PDA. On the evening, awards were handed out to not only individuals who are working hard to make the industry succeed, but also those credit providers, PDAs and Debt Counsellors who are at the top of their game. A number of presentations and speeches were made by individuals from the industry, including the NCR and NCT.

RED CARPET It is true that Debt Counsellors and Credit Providers seldom have cause to dress to the nines, however at the annual Debt Review Awards Gala in Cape Town in June, everyone wanted to put their best foot forward. Even those consumers who attended to receive their clearance certificates (which say their debt is now paid up) were looking pretty snazzy. From the NCR, and NCT, to Consumers and PDAs everyone looked fabulous! After all the guests had arrived down the red carpet and mingled with the sponsors (and once the big rugby game had finished) the evening was ready to begin. Mr. Sebastien Alexanderson, Debt Counsellor and all round funny guy, was the host for the evening and opened the Debt Review Awards Gala with words about how the Awards process had grown over the years and now commanded the industryâ&#x20AC;&#x2122;s participation. He then introduced the first non-speaker of the night, Mr Steve Barnett the Silent Conductor.

The Speeches (and Non Speech) The Silent Conductor is known for his unusual way of getting the audience to participate and cooperate together in producing interesting sound effects and music. By using only hand gestures and simple miming, he was able to get the audience engaged and collaborating to produce music. The message was clear: cooperation between Consumers, Credit Providers, Regulators, PDAs, Attorneys and Debt Counsellors can produce wonderful things. There were some outstanding solo performances by certain members of the audience.

Next Ms. Kedilatile Lagodi of the NCR Debt Review Department spoke about the incredible system we have (debt review) and how the numbers tell the story that despite challenges the industry is helping a lot of people every month to deal with debt and repay their creditors responsibly. Next the National Consumer Tribunalâ&#x20AC;&#x2122;s Advocate John Simpson spoke enthusiastically about the progress the NCT has been making in dealing with the backlog of cases they have received, the benefits of the SA debt review process and how people from other countries have learned from the progress made locally.

Consumers Receive Clearance Certificates Only 2% of SA consumers have no debt whatsoever, and the evening of the gala was a highlight for 3 couples who have been under debt review and who received their clearance certificates on the night. They were assisted to go from being in debt, to debt free by Debt Counselling firms Debt Rescue and Octogen. These certificates mean that the consumer is totally debt free. A rare and wonderful situation to be in. Congratulations to them!

Significant Contribution to Debt Review The first of the Awards handed out on the evening focused on the individual efforts of people in the industry and revealed who the industry wide peer review had identified as hard working individuals who were making a significant contribution to the industry and process. Ms. Sam Haasbrooke of ONE|SURE, the sponsors of the 2 awards, handed out the awards and announced the generous prize money from co sponsors Mutual & Federal. The Awards went to Mr. Chris Van Der Straaten and Mr. Rob Easton-Berry who are both well known, hard working figures in the debt review community.

The guests then had the opportunity to enjoy some light refreshments during an intermission. The break afforded the guests a chance to mingle and meet the generous event contributors and sponsors. Contributors such as ABSA, Capitec, FNB and Nedbank were present along with sponsors such as DCM NPDA, DC Partner, Hyphen PDA, DCASA, Consumer Friend and ONE|SURE and Maximus (for a full list of all the sponsors and contributors click here). Once again the MC, Seb Alexanderson began the session with a few words (and a joke about how a DC, PDA and CP walk into a bar). Sebastien is a registered Debt Counsellor and business owner. He was well poised to remark on industry developments.

Seb then invited Bernidene Thierhof, of the charitable Debt Counselling Community Support program to the podium. Bernidene made a short audio visual presentation in regard to the recent DCCS projects and what DCCS has been up to since last year’s awards. She briefly recapped how she had run the Comrades on behalf of DCCS to raise awareness (and funds) for the project. She thanked Meliorleaf and other sponsors for their help throughout the year. Next Mr. Clive Pintusewitz, CEO of the DCM Group gave a presentation in regard to helping shift the perception of the industry in the public’s mind and how the insurance industry had previously faced the same issue. He showed how Discovery Health had turned their business focus onto their consumer’s physical well-being, and made this understandable and accessible to consumers. He stressed how the Debt Counselling industry needs to likewise shift focus toward consumers financial well being and not just data capture and court orders. The third speaker of the session was our own Mr. Zak King, Editor of Debtfree Magazine and founder of the Debt Review Awards. Zak spoke about the peer review process and explained a bit about how it worked. He thanked the Audits BKF and Mr. Barry Fuchs who was present on the evening to hand out the results. This year, rather than through evaluation by an industry expert panel, the Awards are based off an industry wide peer review where members of the industry

were invited to rate the performance of other parties on the opposite side of the industry. The answers helped create a picture of the top performing companies and were then announced in 3 main categories namely: Credit Providers, Payment Distribution Agencies and finally Debt Counsellors.

After a light hearted first session and a number of informative speeches and consumer clearance certificates the evening had reach the exciting point where the first of the awards categories were about to be announced.

Taking the stage were an unusual looking â&#x20AC;&#x153;Brad and Angelinaâ&#x20AC;? (as they named themselves) namely Debt Counsellor and Attorney Mr. Roger Brown of Credit Matters and Mr.Terri Codd of DCM Group. The First Credit Provider Category under consideration was in regard to smaller or shorter term focused credit provision. The top rated Creditor from the industry wide peer review was Real People/Addcon.

Consumer Friend Scoop Two Awards The next two awards went to Consumer Friend who represent clients in both the Large Non Bank Credit Provider and Retail Credit Provider space. Consumer Friend are an outsourced service provider who handle debt review matters for such firms as Woolworths, RCS, Sanlam and TFG.

Focus then shifted to the always fast and furiously contested vehicle finance category. Here the winner was Wesbank who managed to retain the title for another year.

The final Award in this section is considered by some to be “the” Credit Provider Award namely Banks. Over the last few years this has also been a closely contested award with all the major banks in the running. This year, Standard Bank managed to take the honours as they were the top rated bank across the peer review. The last part of this section was dedicated to recognising the progress made by a credit provider in regard to the way their debt review or collections department deals with debt counsellors and consumers under debt review. A certificate of recognition was awarded to ABSA Bank and was well received by the entire audience. The Audience were sad to see the glitz of ‘Brad and Angelina’ go but next up were the PDA categories Presenting the awards for Payment Distribution Agencies were the legal team of Robyn and Quintin Zimmermann of Liddle & Associates. Putting away their serious court demeanour, the two shone and kept the audience amused with comments like: “oh no I hope it is not another one for them” and “why are these envelopes so small?”

The Payment Distribution categories this year were very similar to those in 2015. The 4 categories were: Customer Service, Industry Support, Software Integration and the big one Payment Distribution. As in 2015 only 3 PDA’s were considered namely DC Partner, Hyphen PDA and NPDA (DCM Group). Since the results were based on a peer review of hundreds of people it is hard to know what the exact margins were, but the ultimate winner in each of the four categories was Hyphen PDA, who went home with an armful of certificates and awards. With only 3 firms in the running it is always going to be a tight race, but it seems full honours belong to Hyphen PDA over the last 6 months. Debt Review Awards – The Debt Counsellor Awards The final 3 awards of the evening were those for Debt Counselling firms. The awards are split into the size categories. First up was the smaller Boutique Debt Counselling firm’s award. Traditionally these firms are run by a single debt Counsellor with a smaller staff compliment who knows every client by name. This year the award went to Cape Town Debt Counsellor Alan Manshon. He is well known for engaging with credit providers and assisting other Debt Counsellors with advice about reckless credit and more. The DC Category awards presenters were Ms. Denise Hartley (of Nedbank) and Athaly Khan (of FNB). The next award was for Large Debt Counselling firms with either several Debt Counsellors or larger staff numbers and more clients. Over the last few years Consumer Debt Help (a Cape Town based debt counselling firms which focuses on lower income consumers) has taken the top honours. This year was no exception, as they were

revealed to have been the highest rated firm in the peer review in this category in 2016. The final award of the evening before the end of the second session was in regard to the largest national debt counselling firms. These giant firms operate all over the country and employ several debt counsellors and have large offices with plenty of staff. They are perhaps the most regulated and most monitored as they deal with so many consumers every month. The winners this year were well known debt counselling firm (and former winners in 2014) DebtBusters.

The evening ended just after 9pm with a few words from the MC before guests were invited to collect goody bags and enjoy some coffee and brownies. Guests were then once again able to mingle and spend time chatting with the sponsors and enjoyed scratching through their gift bags for all the kind gifts from the generous sponsors.

As organisers of the event, the Debtfree team want to say a big Thank You to all the presenters, organising team and volunteers, as well as, the generous sponsors for their help in making the awards possible this year.

Annual Debt R

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Reckless Reckless Lending Lending Allegations Allegations

*Debt *Debt Review Review documents: documents: Form Form 17.1; Form 17.1; Form 17.2; P 1 **Debt**Debt Review Review AdminAdmin related related requests: requests: debit order debit

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That is the slogan of the vibrant Debt Review Department at Standard Bank,Applications; a Team consisting of about 200 individuals Proposals; Court Court Orders based in the heart of Johannesburg and second home to a cancellations; statement requests ; refunds; paid up happy and engaged family.

ances; ortheoutstanding balances About Standard Bank Debt Review Team: Headed by Kershnee Naidoo. Debt Review

Consists of 11 teams within the Department and comprises of 10 Managers and 15 Team Leaders. The Debt Review department acts as a link between the Customer, Debt Counsellors, Payment Distribution Agencies, the National Credit Regulator and internal Product Houses. Focus of the team: We offer the best service we can to all stakeholders within the industry, with the ultimate goal of rehabilitating our customers so that they can go back to participating in the credit market. Vision for the team: To become the number one credit provider in the debt review industry.

086120 1000 Culture: Debt

Review prides itself in their culture of oneness and having a harmonious atmosphere, they unapologetically love food, fun, feast and fulfilment.

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My Blood is blue - living the Values: The debt review team understands that, to make a difference in the industry and in the lives of their customers, you have to think differently and that takes spirit, courage and resilience. Every day presents an opportunity to challenge the status quo to see things for what they can be and embrace change. There is no limit to what we can achieve, excellence is our benchmark.

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0860102270 Becoming number 1: In June 2016 dreams became a reality when Standard Bank was named as

the number one Credit Provider in the Debt Review industry at the Annual Debt Review Awards. This has affirmed that our passion and determination can make anything possible and we hope to continue being affirmed by the Industry.

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LIVIng on less

Ubisoft Give Away FREE GAMES

This year computer gaming company Ubisoft turn 30. To celebrate staying in business and making so much money they are giving away downloads of their older games for free. In total 7 games, over 7 months through to December 2016. If you are a enthusiastic game player or have kids that like to play computer games you will know how scary the prices of games can be so when some come along for free it is worth looking at if you are living on less. So far Ubisoft have already given away the popular Prince of Persia (the sands of time) in June and in July are giving Ubisoft Club members Tom Clancyâ&#x20AC;&#x2122;s Splinter Cell. Ubisoft have released such game titles over the years as: Far Cry, Watch Dogs, Myst, Call of Juarez and Assassins Creed To be able to download the games you need to (have an internet connection with the required data (EG. 2 Gigs download for Splinter Cell) and a free Ubisoft Club account. The account is fortunately not too arduous to set up taking less than 5 minutes. Having the account will also give you bonuses down the line. splinter cell Splinter Cell is a game all about sneaking around behind enemy lines trying not to set off alarms and is based of the Tom Clancy novels about black ops. If you are a fan of computer games and love getting something for free (the best price) then be sure not to miss out on this and the other upcoming titles over the next few months. To join the free Ubisoft club and start downloads head over to: https://uplay.ubi.com/#!/en-GB/

BUILDING A SOLID DEBT COUNSELLING PRACTICE

One of the great things about operating a Debt Counselling business is that, after a time, a well-run practice will generate good aftercare revenues. This is important from a business point of view both because Debt Counselling is quite a cyclical business and because a good solid aftercare book adds a lot to the valuation of the business. Of course there is the added benefit (and no small matter) that happy customers will always bring in more happy customers.

It goes without saying then that looking after that book is of paramount importance to a Debt Counsellor. So what are the important things to do in order to keep customers on our books right up to the moment that a Form 19 is issued? This article will give you the heads up on what to do and how the leading edge Maximus solution can assist you in building a great business. HABIT CHANGING In the early stages of the Debt Review it is important for the Debt Counsellor to change the behaviour of the consumer. This is done by first providing new customers with information and tools to get them going. Maximus produces various documents for the Debt Counsellor to give to the consumer in this regard, including a monthly budget template and customised to do list. Next the first two payments are vital. A phone call to the consumer just before the payment date is of great help. In addition to automatically sending the consumer a sms just before payday, Maximus has powerful management reports to support the Debt Counsellor. Â One of these reports details the consumers who need to be contacted within the next six days to make that personal call. COMMUNICATION Notwithstanding the personal phone call, it isÂ fact that the more Debt Counsellors communicate with their consumers the better the relationship becomes and the greater the chance of a successful Debt Review. To this end Maximus assists the Debt Counsellor in two important ways. Firstly the system continuously informs the consumer of the progress of their application. This is done by sending email or sms (depending on the consumer preference) whenever there is progress made. For example, when the Form 17.1 is sent the customer will receive a message to say that all Credit Providers have been informed of the Debt Review. Debt Counsellors can also send Communications to their customers by sms or email directly from Maximus. These messages are then recorded on the built-in Maximus Note Pad Memo that is kept for each case. Maximus even provides Debt Counsellors with an integrated dialling facility whereby all calls made to customers are recorded and accessed from the notes.

Contact Maximus on 011 451 0041 Next month we will explore further ways that Maximus helps Debt Counsellors to build a successful practice.

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Rijkheer V NCR and others

Bloemfontein High Court ruling on Debt Review matters Ealier this year honourable Justice NM Mbhele heard a matter regarding the debt review process (in particular in regard to how matters are dealt with at court) and made several important rulings. The rulings are very similar in nature to the court matter referred to as the Van De Hoven Declaratory order (Gauteng). Some of the matters addressed are things like: Does the DC have to attend court? Does the DC need to supply a copy of his renewed certificate from the NCR? Does the DC need to attach the original Form16 to the court documents? Several interested parties were involved in what is being called the declaratory order namely the NCR, Department of justice, the banking association of South Africa and the Debt Counsellors

Association of South Africa. We run through some of the highlights of the ruling to give a quick overview so that you know when to refer to this ruling as a precident. First off the ruling indicated that since a debt review matter is heard at Magistrates court in terms of rule 55 the DC who is the applicant does not have to appear personally but can like all applicants pay someone to do so on their behalf. The DC does not have to attach their registration and annual renewal certificate as long as they swear they have these in their founding affidavit. Next it was declared that since a consumer can submit all the info needed to be apply without submitting a form 16 the court does not require a forms 16 to be attached to the court order. Service by electronic means or by hand (not necessarily by a Sheriff) is ok as long as email or fax is allowed for by both parties. Most Credit Providers prefer email these days and say so in their CoBs and other documents. The ruling said that courts can hear these matters even when the original application for help was done long ago as long as they check the updated info. Where the original documents have been lost the DC can swear an affidavit about why and provide copies. In point 7 of the ruling it is said that if two parties (ie. the consumer and the credit provider) agree to a reduced interest rate this info can be included in the court order. The NCA itself doesnâ&#x20AC;&#x2122;t make allowance for this in Section 86, 87 and so many courts hesitate to include a change in interest rates - even if everyone wants it and other laws allow for it. Rather than leave it off the court order and just write the amount to be paid and how long this ruling says: go ahead, add the interest rate in (after all lower rates mean consumers save lots of money and all parties are happy). The Rijkheer ruling also says that the use of the NCCRDEBTHELP system is fine for notifying all credit bureaus when someone applies for debt counselling advice. All in all the ruling is very similar to the Van Der Hoven Declaratory order. Sure the name is harder to pronounce but the message is pretty consistent. While some in the industry have a bit of concern that the NCR were not the applicant (which would be more in line with the NCA) this ruling does bring further clarity to what the courts are prepared to do to help consumers. The ruling sets another important precedent for lower courts and will make things run somewhat smoother in courts where hiccups have delayed consumers getting the full protection of the law. For a download of the ruling click HERE.

DROP Workshop

The Debt Review industry is hardly short of Acronyms: NCR, DTI. NCT, CIF, DCRS, DCASA etc. So what is DROP? DROP stands for Debt Review Operations DROP is a series or irregular meetings and workshops held around the country between credit providers, PDAS, software vendors, attorneys and Debt Counsellors to handle small stuff that wonâ&#x20AC;&#x2122;t be handled by the Credit Industry Forum (CIF). The meetings focus on smaller day to day operations level issues (eg. What is the wording on that form, how does the system calculate that cascade etc). While not earth shattering in outcome the workshops have proved very valuable as several small day to day issues have been identified and this has allowed all parties to give consideration as to how to solve them. Sometimes solutions have presented themselves at the workshop and other times the discussion has simply helped all parties be aware that an issue exists for one of the industry parties. 2 DROP meetings were recently held and here is some feed back from those meetings

May: Chaired by DC Alan Manshon (of the Money Clinic) the meeting, held in Parow, discussed various industry challenges with each step of the process from application to clearance certificate. The NCR attended and were able to take note of several smaller issues. They kindly helped answer some of the questions raised. Among other credit providers, African Bank also attended and were able to help discuss their particular much discussed insurance replacement requirements (they have a very specific insurance product linked to their credit. It is however pricey and this was discussed in depth). The product has some particular benefits and to replace it they require any replacement policy match the benefits 100% or more.

June: The most recent DROP meeting happened on the morning of the annual Debt Review Awards. Presentations were made by 2 Debt Counsellors, an Attorney and PDA software vendor. Here is a quick round up.

Alan Manshon (The Money Clinic) Discussed a day in the life of a Debt Counsellor and was able to highlight several common every day issues and frustrations DCs face which many credit providers were unaware of. In particular he discussed the low entry requirements to be come a DC and the challenges this can present when issues arise.

Quintin Zimmermann (Liddle & Associates) Quintin discussed the legal side of Debt Review. Sect 129 letters no longer constitute the commencement of legal action meaning that an account would be excluded from debt review. CPs need to watch this in their CoBs. During the discussion ABSA in particular were able to identify some wording on their correspondence to DCs they plan to change. A brief pointer or two in regard to Sect 103(5) based on a recent court case was discussed.

Kobus Burger (Bitech) Kobus discussed the debt review “cake” and showed the audience how some payment amounts can be calculated in various ways (regarding PDA fees) and how this can then influence the repayment term (in small but compounding ways). It was scary to see how quickly things can escalate. He pointed out that each CP and PDA calculates things slightly differently and how CPS and DCs need to take this into account.

Reinhard Pettenberger (Debt Therapy & DCASA W Cape.) Reinhard discussed how the industry can ensure quality service to consumers and uphold it’s integrity. Good DCs make for a good debt review. DCs who are not delivering on their promises and take advantage of consumers create a negative impact on the industry. He posed several simple questions and asked how CPs help report to the DC associations and NCR when they see things they don’t think are appropriate. He also put the issue of debt mediation (unregistered and unregulated debt counselling) to the audience and this was discussed in some detail.

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Maximus, the leading debt counselling software is proud to congratulate our PDA partners

on their exceptional success in the Debt Review Awards. Maximus is the original System Partner to Hyphen PDA.

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G N I D N N A O T S ARG R E J D Y N R U T S U D IN

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IN A NUTSHELL

A great vision is like water for a parched man

Extraordinary people and organisations dream boldly and set visions that are inspiring, create value in this world and guide the future. Malaysian-born Vishen Lakhiani in his book ‘The code of the extraordinary mind,’ talks about “dreams, visions… as essential to an extraordinary life”. They provide forward momentum. “When life doesn’t hold meaning for us, it’s like living in the desert, parched for water.”

The South African credit market needs individuals and organisations that can pioneer a new way of thinking, a new vision for the future. According to the latest Credit Bureau report, 60% of the adult population in South Africa is using loans to finance their lifestyle. Almost 50% (10.5 million) of these individuals are at least three months in arrears with their debt repayments. The financial wellbeing of these South Africans is precarious. The debt review industry needs a shake-up and a new way of thinking, similar to what Discovery did in the Health Insurance space. A paper by Anna Orthofer on wealth inequality shows that 10 percent of the South African population own at least 90-95 percent of all wealth. The Debt Review industry deals with people on the opposite end of this wealth spectrum. And the few that have declared themselves overindebted are the tip of the 10.5 million iceberg. The exciting opportunity lies in working with people to move them from being cash flow negative to net worth positive. This was the key message delivered by Clive Pintusewitz, CEO of the DCM Group at the recent 2016 Debt Review Industry Awards in Cape Town. According to Clive, the focus needs to change from focusing on just managing debt to building assets, in addition to securing income and cash flow. In this world, Debt Counsellors have the opportunity to grow into financial coaches and planners making a valuable contribution to the net worth of ordinary South African families. The DCM Group is working on the bold dream of changing the approach to not just debt rehabilitation but the ongoing journey of what happens next. Watch this space... * Source: Source: Anna Orthofer. 2016. “Wealth inequality in South Africa: Insights from wealth surveys and tax returns data,” University of Stellenbosch. Unpublished.

IN A NUTSHELL is brought you by the DCM Business Partnership Programme™, designed to support debt counsellors and consumers during the debt review process, in collaboration with the National Payment Distribution Agency (NPDA). For help, contact the NPDA on 0861 628 628. If you have suggestions for topics that you would like covered in future, please email info@dcmgroup.co.za Debt Review Awards Winner 2014 and 2015: NPDA: Payment Distribution; Client & Customer Service; Industry Support & Engagement Care Premier: Debt Counselling Software

DEBT COUNSELLING COMMUNITY SUPPORT DCCS are currently busy with the Winter Warmer project and are currently in need of the following: 1. Warm Cloths -Money contribution or Voucher 2. Blankets - Money contribution or Voucher 3. Food - Money contribution or Voucher 4. Toiletries - Money contribution or Voucher

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

How a deserving family is chosen: Âˇ Any debt counsellor (or credit provider) who wants to get involved in this project will nominate a vulnerable debt review family that really needs a hamper and let DCCS know about the consumers situation. DCCS will then do everything they can to make sure the family receives the Winter Warmer Hamper. Why? Âˇ For many DCs times are tough and budgets are tight as we all know but some of these families really need our help and without it could fall out of the process back into dire financial ruin. Our small donations can make a world of a difference to an entire family. It only takes ONE default to derail the client from the process and it can take ONE hamper to make all the difference

If you want to help or get involved in this project, you can contact: admin@dccsupport.co.za

Debt Counsellors Associations Announcement Board

Upcoming Regional Meeting Dates: Free State 7 October 2016 KZN 26 August 2016 WESTERN Cape 1 November 2016 Gauteng 26 October 2016

A couple lost both of their houses... because they didnâ&#x20AC;&#x2122;t pay for a photocopier machine. http://www.acts.co.za/news/blog/2016/06/joburgcouple-lose-two-houses-over-photocopier-machine

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

www.dcasa.co.za

www.newera.org.za

Congratulations to all the winners at this years Debt Review Awards. Well Done.

We call on the industry to join our boycott of the CIF. We call on the NCR to step in and assist both consumers and Debt Counsellors by referring matters to the courts for clarity. For more info please see this monthâ&#x20AC;&#x2122;s newsletter in Debtfree.

For more info about joining the BDCF please visit our webpage.

www.bdcf.co.za

www.allprodc.org

JULY

NEWSLETTER

ALLIANCE OF PROFESSIONAL DEBT COUNSELLORS (ALLPRODC) NOTICE OF WITHDRAWAL FROM THE NATIONAL CREDIT REGULATOR’S (NCR) CREDIT INDUSTRY FORUM (CIF) AND CREDIT INDUSTRY FORUM (CIF) SUB-COMMITTEES. At the CIF End-Balance subcommittee meeting dated 10 June 2016 Allprodc was prevented from tabling a presentation relating to the end balance problem in the industry. This was not the first time that Allprodc’s right to be heard was unconstitutionally refused. Allprodc subsequently wrote to Mrs Kedilatile Legodi, HOD of Debt Review at the NCR on 14 July 2016 declaring a dispute and on 21 July 2016 a letter was sent with the intention to suspend/withdraw participation at CIF. The letter pointed out that many of the problems in the credit market industry will be resolved if the correct “point of departure” in a debt review application is used and if debt counsellors adhere to the specific provisions in the NCA and Regulations. Allprodc referred to inter alia the following: 1. Place a moratorium on the training of prospective and registered debt counsellors until such time as the training manual has been corrected to be in line with the National Credit Act, 34 of 2005 and Regulations thereof; 2. That all circulars, guidelines and communiques issued not based on the National Credit Act, 34 of 2005 and Regulations be withdrawn with immediate effect; 3. That ALL practicing debt counsellors, credit providers and credit bureaux be brought in line with the debt review process as prescribed in the National Credit Act, 34 of 2005 and Regulations; 4. That Credit Industry Forum be dissolved with immediate effect; 5. That the unlawful referral of over-indebted consumers to the National Consumer Tribunal be stopped and those consumers’ applications be referred to Court to be declared over indebted. 6. A process be set in motion to rectify all incorrect, unlawful and subsequent null and void debt review orders brought to be in line with the specific provisions of the NCA. 7. All Magistrates Courts and the National Consumer Tribunal be informed of the revocation of the nonbinding guidelines and circulars. 8. The Van der Hoven and Rjikheer “declaratory orders” be set aside as they are in direct contravention of the Amendments to the Regulations of the NCA published by the Minister in the Gazette on 10 May 2012. 9. The NCR issue a media statement to all consumers in South Africa in accordance with S16 of the NCA to have their debt review reassessed and it to be brought in line with the specific provisions of Law. Pending the outcome of our dispute with the NCR, we have suspended any further participation at the Credit Industry Forum (CIF). The NCR has until the 28 of July 2016 to respond to our requests.

www.allprodc.org

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

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