Debtfree Magazine August 2017 by Debtfree Magazine

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

TIME FOR A DEBT DIET? August 2017 www.debtfreedigi.co.za

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

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Don’t expect to hear an endless amount of “spin” around why things failed!.

When you hear how much professional fighters get paid you may wonder if you would be prepared to let someone punch you in the face, for half an hour, in order to earn a few million dollars. That kind of cash sure would end your debt issues…but then again think of all the medical bills. Ouch! No, that sort of dreaming is probably just that: a dream. Those professionals spend hours every day trying to get their bodies into tiptop shape. No naughty carbs for them. They need to stay ripped. Their life is one of strict diet and endless exercise. No doubt,

Cover image courtesy “Jannoon028/Freepik”

from time to time, you too have thought how you might shed a few Kgs and finally get in shape. This month we consider some of the striking similarities between dieting and debt review. The Debtfree team help a lot with the annual Debt Review Awards process. This month sees the beginning of the review portion of the Awards. Each year after the event (while things are still fresh in mind), we ask the community for suggestions on how to improve the process. This year we want to try get input from as many people as possible, the public, industry role players, industry groups and more. Already we have had some great ideas we are looking to implement. You can follow the links in the article in this monthâ&#x20AC;&#x2122;s magazine to take part in a questionnaire (one of several) and can click and send suggestions to help refine the process. Not only do we want to see the Debt Review Awards process refined but we also like to make things better for our readers. For the last couple of weeks the design team has been busy with some coming improvements to the magazine and our website. We are confident they will make it even easier to get your daily dose of industry news and to read the magazine. We hope itâ&#x20AC;&#x2122;s a knockout (technical or otherwise). So, with floods in the US and Drought in the Cape and a bunch of socio-political challenges in between August has been a busy month. No wonder people world wide need some sort of sporting distraction from their problems. If you are under debt review however you cannot afford to get distracted. Stay focused. Prepare now for December and Jan. Bob and weave your way to beating down your debt. Throw that knockout punch and wipe the floor with your debt. Stick to your financial diet plan, get ripped and soon you will be debt free.

FROM THE

E D I T O R S DESK

DEBT DIET

NEWS

REFINING THE AWARDS PROCESS

CONFEF

DCASA ANNUAL CONFERENCE

SERVICE DIRECTORY

DISCLAIMER Debtfree Magazine considers its sources reliable and verifies as much information as possible. However, reporting inaccuracies can occur, consequently readers using this information do so at their own risk. Debtfree Magazine makes content available with the understanding that the publisher is not rendering legal services or financial advice. Although persons and companies mentioned herein are believed to be reputable, neither Debtfree Magazine nor any of its employees, sales executives or contributors accept

any responsibility whatsoever for their activities. Debtfree Magazine contains material supplied to us by advertisers which does not necessarily reflect the views and opinions of the Debtfree Magazine team. No person, organization or party can copy or re-produce the content on this site and/or magazine or any part of this publication without a written consent from the editorsâ&#x20AC;&#x2122; panel and the author of the content, as applicable. Debtfree Magazine, authors and contributors reserve their rights with regards to copyright of their work.

C O N T E N T S

Time for a Debt Diet? Most of us could benefit by trying to shed a little of our “winter weight”. For some of us the winter weight has been an ongoing issue since the winter of long ago. Doctors tell us that extra weight can be detrimental to our health. It places strain on our organs and internal systems, leaving us tired and sluggish. As a result, many people decide to adjust their eating habits to help live a healthier, better life. These days there is a pandemic of over indebted consumers who are heavy with debt. It weighs them down and robs them of enjoyment of their day to day life. It stresses their family relationships and contributes to loss of sleep and poor health. It might just be time to shed those extra Debt Kilos. In many ways there are similarities between successful dieting and successful debt reduction. Let’s compare dieting with Debt Review.

Eating Habits We love naughty stuff. It makes us feel nice. Extra weight can sneak up on you. Sometimes we eat when we are stressed.

Spending Habits Spending money we don’t have makes us feel powerful and important. It’s nice to get things we want right now. With so many people willing to offer consumers credit these days many consumers don’t realize how bad the problem is becoming before it is too late. Sometimes we shop when we are stressed. We reward ourselves with treats and luxuries we can’t afford.

Warning Signs Sometimes a Doctor warns you. Friends and family tell you even though you donâ&#x20AC;&#x2122;t want to hear it. As we gain weight it gets harder to change.

Before You Know It When we get to the point where we have to use credit to pay off other existing debts we are in serious trouble. One of our credit providers may start to send us warning letters or smsâ&#x20AC;&#x2122; demanding payments. Most consumers wait too long

Types of Diets Do research and chose the best for you Donâ&#x20AC;&#x2122;t believe crazy claims! The best long term results come from a lifestyle that combines healthy living with food intake control.

Debt Diets There are many ways to deal with debt. Sadly not all offer legal protection and some may just be scams. Watch out for Debt Mediation scams If people promise you too much: beware! Debt Review is a legal process that helps you get rid of your debt responsibly and manageably. Educate yourself about how debt review works

Picture by Schantalao / Freepik

donâ&#x20AC;&#x2122;t be a twit

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Change Bad Habits Avoid Places & Times of old bad habits Exercise regularly Make simple healthier choices (take the stairs) Start watching what you eat and do. Things like portion control and daily recoding of calorie intake can assist.

Develop Good Habits To get rid of debt, you have to stop taking on debt. Change your shopping habits Shop for value for money. Budgeting helps avoid overspending.

Consult an Expert At gym a Personal Trainer can push you to do more When making food choices a Dietician can help you make educated healthy choices.

Professional Help Debt Counsellors receive training in the National Credit Act and are registered and monitored by the National Credit Regulator. They are trained to assist consumers through the legal process of debt review.

Cheat Day Not a free for all. Limit size/time/day/type of cheating Many diets have a cheat meal (or cheat day)

Picture by Schantalao / Freepik

Treat Day Debt Counsellors set your budget. You get to decide how to use those funds. It doesnâ&#x20AC;&#x2122;t mean no more spending â&#x20AC;&#x201C; just spending wisely. You can often budget to treat yourself and your family.

Results are not Immediate Weigh in and check changes in physique. A slow regular reduction in size and weight are best and last longest. It takes stamina and determination not to regress.

Measured Results Most* Debt Review plans are around 60 months long. At first payments are slow to get rid of debt but later they disappear at a rapid rate. Sticking to a plan is tough. It takes self control and patience. *not all, some are longer due to higher debts or less available to pay.

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DEBT REVIEW SCHOOL Many consumers break their court order for debt review in January due to non payment. This ends the protection of debt review!

Itâ&#x20AC;&#x2122;s hard to do alone Friends and Family support can help make a success of your diet.

Friends Don’t Do Debt We don’t like others to know about debt but if our family works with us, we will have a higher chance at success. Learn to say “no” to your friend’s expensive plans. Don’t let people pressurize you into spending unwisely.

The Results are Pleasing & Healthy If done right the results will be long lasting and beneficial.

Debt Free Living One by one your debts will disappear. Eventually they will all be gone and your credit record will be debt free with no record of any debt review. A real fresh financially healthy start.

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

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Amendments to the Magistrates Court Act Recently the Magistrates Court Act (MCA) was amended. Many of the changes have to do with EAOs/ Garnishee orders and help protect consumers from garnishee order abuse. Here are some of the major items: Section 45 3 (b) (3) â&#x20AC;&#x201C; If a consumer give consent to a change of jurisdiction to a court which should not have jurisdiction it is of no force. Section 57 (1A) - an offer must have info on the consumers income and expenditure and other legal obligations and court orders. Section 55A â&#x20AC;&#x201C; A court must consider (among other things) if an order is just and equitable given the size of a debt, the alternatives (like debt review) to recovering the debt and the needs of dependants (eg kids or people with disabilities) Section 65J(1A) (a) - an EAO payment must not exceed 25% of the debtors basic salary.

THE ANNUAL DEBT REVIEW AWARDS

Refining the Process

Each year NCR registrants are invited to participate in a cross industry review of their counterpart peers. Banks get to review Debt Counsellors, who get to review the PDA’s and Credit Providers in return. It is an opportunity to take stock and identify key issues and challenges. It is also an opportunity to say: “Well done!” to those individuals and firms who are working hard to elevate the industry. PAST REFINEMENTS Over the years, the Debt Review Awards process has been repeatedly refined. There have been repeated calls online and in the magazine and via associations for input and these have been heard. In the early days a very busy, non paid panel of industry experts spent many, many hours reviewing industry role players. To lighten their load and allow more industry members to participate, an online

peer review process was adopted. While, at first, the criteria were somewhat amorphous, this was soon refined into an agreed list of 10 main factors to be considered across all companies. This information was made openly available online on the dedicated Awards website. Participation across the industry has increased every year with more and more participants as the process has become easier and faster. In the background, software has been also refined to ensure that all registrants can participate (even if they work at the same IP address). The software has also made it easier to spot any possible attempts at manipulation and ensured the integrity of the results. T&Cs have been refined and there has been increased after event marketing material made available to winners. The Awards gala evening too has been refined. As generous financial support has grown, so too has the gala event. Attendees have been privileged to hear from the industry Regulator, the NCT, the DTI, they have enjoyed comedian MCs and even instructive silent entertainment.

It has been exciting to see how the process has grown over the years. We have to thank not only the sponsors but every person who has participated. ~ ZAK KING, DEBT REVIEW AWARDS FOUNDER

2017 was the fourth annual event and saw some familiar and some new winners identified. One of the refinements which have been made and greatly appreciated was the announcement, in the Debt Counsellors section, of a Top 10 and Top 5 in the various categories. This helps recognize the hard work of a greater pool of Counsellors. Year 5 Founder Zak King says: â&#x20AC;&#x153;Our team has always taken year 5 to be our next biggest step. We take it very seriously. We have been building toward 2018 for a number of years with particular goals in mind. We want to ensure total transparency,

universally agreed criteria and if possible, industry wide participation in it’s’ most comprehensive form yet”. To do so however, calls for continued refinement of the process. The Debt Review Awards organizers are now calling on all to participate. Registered with the NCR? Take part in a Survey about the Debt Counsellor Section and criteria here:

SURVEY

Not NCR registered but have good ideas: Email the organizers here:

Over the next few months, your suggestions will be put before industry role players both within the various associations and independently. Be sure to read Debtfree or check the website or the Awards website (www.debtreviewawards.co.za) to continue to participate in the review of the process. The event is an industry one and as such needs as much input and guidance from the industry as possible.

INDUSTRY

CONSUMER

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

IMAGINE LOSING 500 000 CLIENTS

Edcon are SAâ&#x20AC;&#x2122;s largest clothing retail outlet and has reportedly lost over 485 000 clients in the last 12 months. This is according to their 2017 annual report. Edcon say this is because of tighter lending criteria. This is partly due to new regulations but also due to requirements from ABSA (who will now provide around 20% of the store credit). Newer clients are also being given lower credit limits (as prices of items are going up). This has not helped sales in a downturn economy. It has however probably helped them avoid a lot of bad debt. In the past, around half of all sales were done on credit. This has now reduced to around a third of sales although they recently reported to shareholders that credit sales were climbing again. Despite this reduction in credit sales Edcon made around R1.089 Billion rand in revenue from credit and financial services in the last financial year. This includes revenue from nearby states like Zimbabwe, Lesotho, Botswana, Swaziland and neighboring Namibia.

NCR ISSUE NEW PROPOSED FEE GUIDELINES

The National Credit Act and regulations are silent on the charges which a Debt Counsellor can ask for. In the past, only the Debt Counsellors Association of South Africa and the National Credit Regulator (NCR) have published any guidelines in regard to what they think Debt Counsellors should be charging. Recently the NCR has been doing some research into the debt review process and has decided that they want to update their guideline or non-binding opinion on the topic. They are now calling for comment on the new proposed fees. You can download the Circular here: http://debtfreedigi.co.za/ncr-publishpossible-fee-guideline-comment/ and send comments to pmichaels@ncr.org. za. Comments must be submitted by the end of September 2017.

LOAN SHARKS ARRESTED

In a recent operation outside Nelspruit, the SA Police Services conducted a raid on unregistered credit providers and

NEWS CONTINUED

arrests were made. Anyone who loans other people money for profit (charge fees or interest) has to register with the National Credit Regulator as a Credit Provider. This includes the country’s many loan sharks who previously fell under the threshold (or just operated illegally). The SAPS operation was run in conjunction with the National Credit Regulator and SASSA. During the raid, the police recovered 846 SASSA cards. A number of other items were also recovered (possibly taken as collateral) as well as R343 075. Police and the NCR indicate that these raids on illegal credit providers will continue in the weeks ahead. In another raid earlier in the month, SAPS and the NCR swooped on loan sharks drawing money with consumers SASSA and bank cards from ATMs in the Nigel area. 8 people were arrested and are now out on bail pending their hearings.

NCR ISSUE CERTIFICATES

Recently, the NCR decided to issue annual certificates of registration to all registrants (including Debt Counsellors). Since many courts ask for the current registration certificate this became an issue when there were concerns that Debt Counsellors would have them in time. The NCR have been busy sending out email versions to Debt Counsellors

who ask and have sent many Debt Counsellors their certificates via post. Some Debt Counsellors report that they received their certificates via email or post while others say they have not yet received them.

DCASA ANNUAL CONFERENCE

The Debt Counsellors Association of South Africa held their annual conference this month. The conference had it’s highest attendance yet and featured speakers like well known economist Mike Schussler and Caroline Da Silva of the FSB who spoke about Twin Peaks. [Read our Review in this issue]

NCR DEBT HELP ALLOWS FOR SELF TRANSFERS

Due to, what can only be called, “popular demand” the National Credit Regulator (NCR) has made system improvements to their NCR Debt Help online system which now allows Debt Counsellors to transfer consumers between themselves without having to wait on the NCR to do so manually. The CPA allows consumers to choose their service providers and not be locked into dealing with firms or service providers they no longer wish to do business with. The NCR has an online database of consumers and the

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NEWS CONTINUED

status of each consumer’s debt review application (from start to finish). This information needs to be adjusted when a transfer happens. Initially, the programme designers and NCR never expected consumers to want to make changes or that Debt Counsellors would die and their clients would need to be moved etc. Thus, the function of moving consumer’s records from being with one Debt Counsellor to another was not a major programme feature and was restricted to background access by the NCR themselves. As a result, transfers had to be done via emails with spreadsheets and telephone calls and... well, the system broke down under the sheer workload that those tasked with this assignment at the NCR faced. After many requests from Debt Counsellors (and no doubt internal staff requests at the NCR), the NCR and their developers have now opened the transfer system to the front end users.

MOODY’S RATING HOLDS

International ratings agency Moody’s were recently due to announce an updated rating for SA’s Credit Status (Foreign Currency & Rand Denominated Debt) but decided not to do so. Two months ago, Moody’s decided to cut SA’s credit rating to just one notch above “junk” or don’t invest status. There

was fear that the rating would drop this month. In something of a surprise move, Moody’s decided not to release a new ratings review. They reason that the country has not had any significant events which would warrant a review.

R60 BILLION CONSTITUTIONAL COURT APPLICATION OVER HOME AUCTIONS

Advocate Shaw (famous for securitization cases) along with over 225 applications have launched a law suit at Constitutional Court claiming R60 Billion in damages from the big banks. The case centers about homes auctioned without a reserve price for as little as R10 (in an extreme case). Since 1994, when the new Constitution came into affect, around 100 000 homes have been sold on auction. In SA there is no requirement for banks to set a reserve price related to market value of the property unlike many other countries. The case hopes to change this and gain recompense for affected citizens. For daily debt counselling news in 3 minutes or less visit www.debtfreedigi.co.za

DEBT REVIEW SCHOOL Start to save now towards January School Books and School Clothes. Donâ&#x20AC;&#x2122;t Miss your January Payment!

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IN A NUTSHELL

SUGAR AND INDEBTEDNESS HAVE A LOT IN COMMON Picture freshly baked muffins, filled with melted chocolate chips, and topped with yummy vanilla ice cream. Is your mouth-watering? Perhaps you are craving some other sweet delicacy or dessert? What happens in the brain when sugar touches your mouth? Sugar is a general term to describe a class of molecules called carbohydrates. Sugar activates the brain reward system. The major currency of our brain reward system is a neurotransmitter called dopamine. Dopamine is a key factor in motivation, productivity, and focus. Too little dopamine can leave you unfocused, unmotivated, lethargic, and

even depressed. For people who eat a balanced, low-sugar diet, they are able to keep their dopamine levels in check. However, when sugar is consumed in excess it behaves a lot like a drug, sending dopamine levels into overdrive. Certain behaviours like socializing, exercise, touch and shopping also increase dopamine. In excess, these behaviours can become an addiction.

“Compulsive shopping and spending are defined as inappropriate, excessive, and out of control,” says Donald Black, MD, professor of psychiatry at the University of Iowa College of Medicine. “Like other addictions, it basically has to do with impulsiveness and lack of control over one’s impulses.” For many people shopping means buying some groceries or some new clothes, for others, it’s an enjoyable hobby and for the real shopaholics in can turn into a financial disaster. Here is a list of signs that your shopping behaviour has become an addiction: • Spending way beyond your means. • Going to the mall to buy one item and coming out with ten of the same. • Borrowing to help fund spending. • Hiding the problem from your loved ones, eg. storing your purchases away from your husband or wife.

• Your over-spending starts affecting your relationships, either because of the financial strain or because of the excessive behaviour. • Feeling guilty, ashamed, or embarrassed after a spending spree. Over indebtedness has become a scourge not just in South Africa but also in many other parts of the world. When 70% of your salary is going towards debt repayments then you know you have a problem. Are you over shopping and drowning in debt as a result? According to the latest Credit Bureau Monitor, almost half of the 25 million credit-active South Africans, are 3 months behind on debt repayments. Remember you are not alone. Debt counsellors and payment distribution agencies like the NPDA are there to help you get back on track.

IN A NUTSHELL is brought you by the DCM Business Partnership Programme™, designed to support debt counsellors and consumers during the debt review process. 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

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Die Republiek van

SKYT AFRICA Hello almal, Dit begin nou lente word hier in die Noorde van ons land en dit kikker sommer n mens se gemoed op, die grouheid en mistroostigheid van die winter is een van die dae verby. Ongelukkig gaan mense wat gebuk gaan onder skuld se finansieele winter voortduur en die vraag wat jy jouself moet afvra is wil ek permanent in n winter verkeer? Iets wat ons almal reeds kleintyd geleer het is om nie te jok nie, nie n witleun nie en defnitief nie om te lieg nie. Nou wat het dit met skuld uit te waai? Nogal baie sou ek reken. Ons het n kleintjie dood daaraan as iemand vir ons lieg en as ons kan sal ons so n persoon in die toekoms vermy met die minagting wat hulle verdien. Ons is mos nie so groot gemaak nie, ons het mos normes en waardes!

Hoekom is dit dan dat ons vir onsself lieg wanneer dit by skuld kom? Almal het te vertelle dat jy moet minder spandeer, jou sente moet omdraai en kundig moet spandeer maar dan kom ons met allerlei verskonings hoekom dit nie moontlik is nie en dan sal ons, nogal passievol, allerlei verskonings voorhou hoekom daar nie minder spandeer kan word nie. Ons sukkel om te onderskei tussen wat

is broodnodig en wat is spandabelrig, soveel so dat ons dit wat ons kwytraak as verskonings die reine waarheid is. In werklikheid lieg ons mos dan vir onsself of meer sagkens gestel, ons is nie n dissipel van die volle waarheid nie. As ons nie met leuenaars geassosieer wil wees nie waarom is dit aanvaarbaar dat ons dit aan onsself doen? As jy vir jouself kan lieg dan meng jy mos nou met die semels. Gaan sit dus en kyk met n kritiese en eerlike oog na jou maandelikse begroting. Gaan jou bankstate na en kyk waar het al die geld heen verdwyn. Moenie elke bedrag probeer regverdig nie maar bevraagteken elke bedrag, was dit werlik nodig en indien wel het ek probeer bespaar?

Wat voedsel aanbetref die â&#x20AC;&#x153;no name brandsâ&#x20AC;? wat mense so vermy word deur dieselfde besighede vervaardig as die bekende handelsmerke, gaan kyk n bietjie op die verpakking en dit is goedkoper. As dit by klere kom, veral kinders wat nog groei is dit nou werklik nie nodig om die duurste handelsmerke te koop nie. Hulle groei so vinnig daaruit. Die boodskap wat ek wil tuisbring is, indien daar gekoop moet word doen dit kundiger. Gaan vergelyk dan elke maand se aankope met die vorige maand en wees krities indien daar nie n besparing was nie, moenie terugval op jou ou uitgeleefde verskonings nie en hou op om vir jouself te jok dat dit nie anders kan nie. Verandering begin by jouself en wees dus baie eerlik met jouself, jy skuld dit aan jouself.

Groetnis. Christo Hattingh Kyk gerus my LinkedIn profile: https://www.linkedin.com/in/christo-hattingh-351a52130/ * Seriously please do let us know if you found this article to be funny/offensive/amusing/interesting feedback@debtfreedigi.co.za

DEBT COUNSELLORS ASSOCIATIONS ANNOUNCEMENT BOARD

Regional Meetings Kwa-Zulu Natal: Western Cape: Freestate: Gauteng: Eastern Cape:

26/10/17 07/11/17 20/10/17 24/10/17 27/10/17

www.dcasa.co.za

Our main focus in 2017 is on ensuring that all BDCF members comply with all legislation, regulations and conditions of registration. We have already strengthened our communication channels this year and will look to continue to do so. We are excited that special projects are being launched for members and their clients in areas such as incapacitation or death of DCs,usage of PDAs by consumers, as well as fees.

www.bdcf.co.za

The Banks Get Sued For R60 Billion http://www.acts.co.za/news/blog/2017/08/r60bnconstitutional-court-case-launched-against-banks

www.newera.org.za

The NCR have issued a new fee guideline. Join our discussion on Facebook and help us with a submission to the NCR. Email comments to: bernidene@csdebtcounselling.co.za www.allprodc.org

AUGUST

NEWSLETTER NCR Fee Guideline Proposal– Please Comment Thank you to all the members who have been posting and commenting on the Facebook group. Though there are many other ways to communicate (eg. Emails) members say they find Facebook easiest. As such, we will continue to use it as our primary resource and meeting ground. Please post in our discussion of the NCR proposed Fee Guideline as we will be sending an association comment to the NCR. Thank You Over the last few months Bernidine Theiroff has temporarily been acting as association secretary. Due to other commitments her limited time in this post is now coming to a close. We want to say thank you for all her hard work. Online Meeting There will be a 30 min online meeting for members on Monday afternoon 9th of September at 2pm. A link will be posted on the Facebook group. The link on the Facebook group will open to a webpage and then it is a case of simply turning on your mic and speakers. We will probably have some technical issues at first, as is common with new users on the group chat software but once that is sorted out we will get to discuss a number of items. On the Agenda will be: • AllProDC in your area (general discussion) • New members (we want to give as many DCs a voice as possible) • The Association Secretary position (NEC). • Engaging with Credit Providers (who next?) • NCR Fee Guideline Proposal • Open discussion

www.allprodc.org

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

CONFEF

Consumer Financial Education Foundation Some familiar names are busy with an exciting new project called Confef. The project has the opportunity to assist not only credit providers and Debt Counsellors but also consumers. Debtfree had the chance to talk to them and ask them what they are doing and why they are doing it. What is Confef? Confef is an acronym that stands for Consumer Financial Education Foundation. It is an independent not for profit organisation registered with the Department of Social Department â&#x20AC;&#x201C; no.: 192-529 NPO, to focus on consumer financial education. The core objective of CONFEF is to empower consumers to be able to make informed financial decisions as well as promote and protect their rights. Why did you start Confef? In line with the preamble of the Consumer Protection Act 68 of 2008 which states that apartheid and discriminatory laws of the past have burdened South Africans with unacceptably high levels of poverty/ illiteracy and other forms of social and economic inequality. Due to lack of financial education most consumers still fall prey to exploitation and are vulnerable to accept what is offered to them without taking into consideration any risks or understanding disadvantages associated with the financial product or services offered.

What is your background in assisting consumers? CEO - Octavia Hlatshwayo The Founding Member, Octavia Hlatshwayo has experience in financial industry after working in the banking sector and also has extensive experience in seeking resolutions for consumers having previously been in the employ of The Ombudsman for Banking Services and The National Credit Regulator â&#x20AC;&#x201C; the enforcers of The National Credit Act, 34 of 2005. In pursuit of consumer protection and being driven by passion to serve consumers, Octavia Hlatshwayo, has successfully ran debt counselling practice from 2008 to June 2017. She is now shifting the focus to make sure that consumers are educated in financial matters to correct and prevent over-indebtedness. COO- Mpho Lekala Mpho has significant expertise and experience with over 30 years as a voice and an advocate for consumer rights in South Africa.

What can Confef do for consumers? CONFEF will provide accessible financial education to consumers through innovative channels. • Conduct financial workshops • Promote Debt Management & Debt Relief Measures • Disseminate financial information on goods and services • Promote savings culture • Promote consumer rights and protection as well as responsibilities What can Confef do for the industry?

For creditors -

• To restore culture of repayments: • Will maintain balance between consumers and creditors rights

For debt counsellors • To promote debt review industry with the aim of addressing negativity around the debt review process; • To encourage consumers to be committed to the debt review process

For Payment Distribution Agencies • To promote the use of PDA’S as a protective measure for consumers. How do I join and support CONFEF? Membership is voluntary with benefits. Contact CONFEF for membership forms

Where can I learn more about Confef? Octavia Hlatshwayo 084 032 7640 Mpho Lekala 084 619 7593 SMS “DIGI” to 48092 Email: info@confef.org.za Sponsorship/Donation BANKING DETAILS: Name: Consumer Financial Education Foundation (192-529 NPO) Bank: FNB Branch: Eastgate Branch code: 257705 Account: 62712673658 Ref: Name surname / name of organisation & Contact Number

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DCASA ANNUAL CONFERENCE

The Debt Counsellors Association of South Africa (DCASA) held their annual Conference during August. DCASA is South Africaâ&#x20AC;&#x2122;s largest Debt Counsellor association and members from across the country travelled to Emperorâ&#x20AC;&#x2122;s Palace in Gauteng for the day long event. The venue was packed as Debt Counsellors and credit providers, as well as other service providers, filled the conference centre. Various banks and payment distribution agencies had display tables where they were able to engage with those attending.

This allowed for conversations about specific matters to be held face to face. Morning Session Mel De Silva opened with a few words and acted as chairman for the day. He pointed out that this conference

was DCASA’s 9th during it’s 10 years of existence. DCASA has been around slightly longer (by a few weeks) than the National Credit Act has been in effect. Before the other speeches began, DCASA President Paul Slot made an announcement about the launch of the new look DCASA website. www.dcasa.co.za Economist Mike Schussler was the key note speaker for the day and spoke about the world economy and SA’s ratings by international ratings agencies. He explained the good and bad of the

current world economic state and local affairs. Slightly less people are in debt trouble but also the banks are giving less people than normal credit these days. He says he is troubled that there are more credit active consumers in SA than people with jobs. Some attending were concerned about some of his comments about the debt review industry but given the context of how many people are in financial distress these did not hold much weight.

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South Africaâ&#x20AC;&#x2122;s leading Debt Counsellors Click through to

www.creditmatters.co.za or call our national call centre on

086 111 6197

Caroline Da Silva of the FSB spoke to the audience about Twin Peaks. She gave background and discussed timelines. She also discussed how the NCR still looks to fall outside the process but will probably be on a board of regulators who meet regularly. Debt Counsellors will (it seems) remain outside the provisions of the Conduct of Financial Institution Act but the new Regulator may want to try get some oversightâ&#x20AC;Śsomehow.

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The DTI made a presentation on possible amendments to the NCA and new possible proposed debt relief plans.

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Jothie Bechoo ATTORNEYS & DEBT COUNSELLOR

Taking care of all your legal needs Specialising in Debt Review Applications for Debt Counsellors/Attorneys

We aim to have debt review orders granted at the first court appearance

Our offices personally attends to debt review applications in the following courts:

We avoid unnecessary adjournments

Durban Pinetown Chatsworth

Verulam Ntuzuma

Our fees are reasonable We have six yearsâ&#x20AC;&#x2122; experience in Debt Review applications We assist clients in Rescission of Debt Review orders & administration orders

Suite 7 Gladstone Court 103 Smiso Nkwanyana [Goble] Road Morningside Durban Tel: 031 303 1004 Mobile: 076 835 2810 Email: jbechoo@jb-attorneys.co.za Also specializes in: Deceased Estates, Wills, Divorces, Ante Nuptial Contracts, Correspondent Attorney, Rescissions

15 500 Debt Review applications a month

Afternoon Session Paul Slot (DCASA President) spoke about the number of consumers entering debt review. He discussed factors which attract and some that scare off consumers. Debt Counsellor fees was a hot topic with the crowd becoming very animated just at the mention of Chris Barrett (of Google SA) discusses the online landscape. Starting with the topic. search engines in 1997 (and dial up), he worked to where the internet is today and where it is going in the near future. Download the Presentation Chrisâ&#x20AC;&#x2122;s message was simple: Future Proof your business by focusing on mobile more.

Rules for better customer conversion:

1. Help me faster 2. Know me better 3. Wow me everywhere Chris reminded the audience that their website is not competing with other Debt Counsellors websites. No, they are competing with the best mobile experience a consumer has ever had.

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Prize Giving and Q&A Several of the Display Sponsors were kind enough to hand out prizes to several attendees. Maximus handed out gift bags. DC Partner gave out some nice vouchers and Hyphen PDA a very fancy Tablet. The day ended after a short Question & Answer session. The last question of the day was: When can we do it again? Mr Slot told the large audience that they would have to hang on till the same time next year.

DEBT COUNSELLING COMMUNITY SUPPORT

WE NEED YOUR SUPPORT DEBT COUNSELLING Help us identify worthy, loyally paying debt review consumers going COMMUNITY SUPPORT through tough times. Letâ&#x20AC;&#x2122;s see how we can help.

We also invite firms and individuals to help through donations. Make sure your funds get used wisely by joining the DCCS family and helping the right consumers get the right help (while they take care of their debt repayments and stay in the process). Nedbank Debt Review are saving dozens of cans of food to donate to DCCS at the end of the year. Why not join them and gather presents, blankets or non perishable foodstuff to be used to assist vulnerable debt review families? Contact admin@dccsupport.co.za.

Check out our website for pictures, stories and more and as always if you would like to get involved in one of our projects (like our back to school project for Jan) then we ask that you simply email admin@dccsupport.co.za

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