Debtfree Magazine Issue #10 of 2021 by Debtfree Magazine

NEVER ENOUGH TIME? TOP TIPS FOR MAKING MORE TIME Issue 10 of 2021

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FROM THE EDITOR James Bond may have ‘no time to die’ but you may simply have no time at all. Time is so valuable that we say time is money. But what if you have no money and no time? That’s how most people feel these days. Are you just trying to make it through the week to enjoy a few moments of respite on the weekend? In this issue, we look at top tips and advice from time management experts on how you can make the best use of your time. You may find some tips that can help you get more done, tips that might take some of the stress out of your day, and maybe even tips to help you get around to doing some of the things you have been meaning to do, but never get around to. We also catch up on local and international news, like the breaking story about the world’s biggest tax fraud case ever. Now there have been some spectacular cases of fraud in the recent past, so for this one to take the highest slot ever, it is a pretty big deal. They suspect that nearly 1 Trillion Rand has been defrauded from the European version of SARS. That’s a number so big it nearly breaks your brain. It’s like watching a video on the increasing size of different suns in the universe or how tall Shaquille O’Neal is, compared to various other people.

Every year retailers try to convince us that Black Friday is our one and only chance to get a great deal. Will you fall for the advertising campaigns this year? Be sure to check out our Black Friday article, which will force you to ask yourself some hard questions. We also tackle some debt review specific topics, like a look at the form that is used when a consumer has a big change of circumstances. If you work in the industry, you may even want to check out the Jobs section in this issue. If you are looking to get in touch with a credit provider, Debt Counsellor or attorney then head over to the Service Directory Section for their latest contact details. We hope that you are able to find the time to read this issue, and find the tips that work for you. By staying in touch with what is happening locally, internationally and with debt review specifically, you are arming yourself with a tool more useful than James Bond’s tiny Walther PPK pistol: knowledge! Well done on making it this far into the year. It may be one of the hardest years of your life, but it is almost over, you are almost there, it’s really not long to go. Summer is already here, so, keep up your hard work, make those payments, get debt free.

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CONTENTS DO YOU NEVER HAVE ENOUGH TIME? THE BIGGEST TAX FRAUD SCHEME EVER

BEWARE BLACK FRIDAY HYSTERIA

WHY A DEBT COUNSELLOR CAN GET DEREGISTERED

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 editors’ panel and the author of the content, as applicable. Debtfree Magazine, authors and contributors reserve their rights with regards to copyright of their work.

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BREAKING NEWS

REPO RATE MIRACULOUSLY UNCHANGED The SA Reserve Bank’s Monetary Policy Committee (MPC) has recently decided to leave the repo rate unchanged at the record low of 3.5%. This will continue to provide credit users with some much needed relief in the face of the pandemic and subsequent lockdown. The Reserve Bank Governor has however warned, that over the next 24 months consumers are likely to have to face slowly increasing interest rates. This is due to slightly higher than desirable inflation rates (have you noticed how petrol prices and food prices are up?) and pressure from international economic and political developments that impact the value of the Rand.

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1.3 MILLION PEOPLE UNDER 24 YEARS OLD ARE UNEMPLOYED Young people leaving school face the daunting challenge of finding work. Almost half of them will struggle to find work. Recent stats discussed at Parliament revealed that there are currently 1.3 million unemployed youth in SA and over 1 Million young people have been sitting without work for over a year or more. Stats recently released showed that certain sectors of the economy have been hard hit by job losses including: Construction: Trade: Private Households: Transport: Agriculture:

87 000 jobs lost 84 000 jobs lost 70 000 jobs lost 40 000 jobs lost 18 000 jobs lost

Other sectors were not as badly hit, some even saw small gains, but this means that 299 000 people lost work in the last few months. Most of these job losses are directly attributed to the economic impact of the pandemic. There are currently over 7 million unemployed South Africans who are looking for work.

98 CENT PETROL PRICE INCREASE COMING The price of fuel looks set to shoot up by nearly R1 per litre in November. Two things are happening at the same time that will see the local petrol price increase dramatically in November, and then sadly probably again in December. First, the Rand has not been performing well in relation to the US Dollar since June 2021. Though this figure always goes up and down a little, this is a vulnerable area for a country that has to buy fuel in Dollars. Other international currencies which are often linked and compared to the Rand by investors, have been doing poorly (looking at you Turkish Lira). Secondly, a big international energy crisis is building, and the cost of barrels of oil is going up. In fact, it is at some of the highest rates it has been in years. Oil barons are happy, commuters are not. When you put those two factors together, it means we are now in for a big petrol price jump in November, and diesel users have not escaped unscathed either, with the diesel price set to go up by a whopping R1.40/litre. Petrol, which started the year (inland) at around R14.86, now looks set to finish the year at over R19.30 or more. That is more than a 30% increase in one year, ouch!

ABSA DEBT REVIEW DISCONTINUES SOME EMAIL ADDRESSES It is vital that the right emails get to the right people when dealing with debt review. A missed email can result in many lost days in a time sensitive process. Recently, ABSA have made a move to streamline and simplify their processes. This includes some changes to their email addresses. Email addresses that will be terminated effective 1 November 2021, are: • • • • • •

DRCOB@absa.co.za DRProposals@absa.co.za 17.4@absa.co.za Courtapp@absa.co.za DCClearanceCertificate@absa.co.za DCTransfer@absa.co.za

The email address that should be used from 1 November 2021 for all process-related documents is: ABSADebtReviewDocuments@absa.africa The familiar email address for general queries remains debtreviewqueries@absa.co.za

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DO YOU NEVER HAVE

ENOUGH TIME?

DO YOU NEVER HAVE ENOUGH TIME?

DEMANDS ON YOUR TIME Life is hectic. We have so many obligations to take care of every single day that it can feel like we don’t have a single moment for ourselves. No doubt your family requires the majority your attention, but your boss also demands your time, as do your friends and others who ask for help, this can use up what little time you do have. And that’s before the car breaks down, or the train is out of order or some other unplanned time consuming disaster comes your way. So, with so many different demands on our time and attention, how do we find time to take care of everything?

DO YOU NEVER HAVE ENOUGH TIME?

CHASING NORMAL You may feel that you have been running for months on end with little or no rest or respite. If you feel this way, you are not alone and statistics show that most South Africans have been working longer and harder during lockdown. You may be telling yourself that you are going to regain some balance any day now, maybe next week. You convince yourself that you just need to push through this week, and then you can get back to normal. But what if ‘normal’ never comes, and by the time the end of the year rolls around, you are totally burnt out and exhausted? Let’s consider some tried and tested advice from time management experts that really work. These tips can help you make the most of the time you do have, and even find more time to do the things you want.

DO YOU NEVER HAVE ENOUGH TIME?

A DAILY “TO DO” LIST You may be in the habit of getting up and going to work and then coming home exhausted. Somewhere in the back of your mind there is a list of things that you know you should do, but you never find the time. The first step to figuring out how to make the best use of your time each day is to make a list of what you need to get done. Most experts recommend a daily to do list. Taking 2 minutes each morning to make a to-do list forces you to itemize what result is needed, and what action you must take to get it done. And if your list gets too long and intimidating, then you can always move some items to tomorrow. The idea is to prepare the list again each day. Looking over the items from the previous day you will see what you didn’t finish, and can add it to the new to do list for the day. Having the list in front of you will enable you to clearly see what items are most important, and need to be done immediately, and which items can wait till later in the day or tomorrow.

DO YOU NEVER HAVE ENOUGH TIME?

THE 80/20 RULE The 80/20 rule is a way of saying that often, it only takes a little bit of effort to get you 80% of the way to complete. It can often take you 80% of the time and effort, to get the last 20% done. For example, you are expecting a visitor so, you decide to tidy up your room. You start by neatening up your bed covers, putting away a few items of clothes that were lying around and maybe you sweep the floor quickly. It takes you only a few minutes. You get 80% results for only 20% time and effort. But the room may not be 100% clean. You decide to reorganize your cupboards and drawers, move some furniture around and vacuum behind all your cupboards. Surprisingly these tasks take you a lot longer. Your visitor will hardly notice these items at all. The last 20% of the job took most of the time and effort. Consider if the extra effort on this particular occasion was worth it. Could you have left the clean up at just the first few things, and then moved on to preparing them something delicious to eat when they came over (or other tasks). Often a business will find that 20% of its clients are responsible for 80% of their profit. Or 20% of the stock is what moves the most, it has many applications. Can you focus on the few tasks that will see you get the most “bang for your buck”, the biggest return on your time and effort?

DO YOU NEVER HAVE ENOUGH TIME?

DO THE MOST IMPORTANT THINGS FIRST Once you know what things you need to do each month, or each day then you need to prioritise. Some items will have a deadline that is looming, these will require attention first. Some items on your list will be the most important for other reasons, and you should allocate time and mental energy to handling those things before you get distracted by other less important items. If you get 20 small, unimportant things done in a day, you may have a fleeting feeling of accomplishment, but if you forgot to do any work that day, you may be heading for disaster (especially with your boss). Make a point of allocating enough time for the most important things first, the see if you can squeeze in a few of the other ‘nice to haves’. Once again you can see the value of making a list and prioritising. It is also very important to realize that you will not get everything done. You need to make your peace with that, and try to ensure the most important and time sensitive things are handled first.

DO YOU NEVER HAVE ENOUGH TIME?

SCHEDULE LESS If you have ever made yourself a delicious wrap or burrito then undoubtedly you have fallen into the trap of putting too many fillings inside and making a big mess when you try to eat it. Everything begins to slide out and mess all over you or your plate. A daily to do list or monthly schedule can be the same. If you do not schedule enough time to handle matters properly, then you are never going to get through your list. It is better to be realistic and even generous in planning your day. Will it take 20 mins? Rather schedule 30 or 40 minutes to allow for distractions and delays. Rather schedule fewer items, and then find you have a few minutes left over to handle bonus items than the other way around.

DO YOU NEVER HAVE ENOUGH TIME?

THE STUFF YOU SHOULD DO BUT DON’T FEEL LIKE DOING It is not uncommon for to find a dozen excuses to avoid doing something unpleasant, but important. Maybe it is something that will put us in a confrontational situation with someone else, or maybe it is just plain nasty (like cleaning out those garbage bins). If these are small things, then often we can shift them down the list and focus on more important things for today, but if they have a big impact on your day or life, then you should address them. An excellent tip is to deal with these items when you are at your most energetic and enthusiastic each day. For some people this will be at the start of the day. For others it will be once the kids are at school and all the morning items have been attended to. You know your routine the best. Find the time when you have the best mental and emotional energy, and then tackle that challenging item on your list. Get it done even if it is nasty, that way you can free yourself from the background stress it is causing you.

DO YOU NEVER HAVE ENOUGH TIME?

IF YOU WORK FOR YOURSELF Working for yourself has many advantages (like actually generating income in an economy where so many people are unemployed) but it does come with its own challenges. One of the biggest challenges is effective time management. Sometimes you cut yourself too much slack, and don’t do what you should because your boss (you) is too lenient on you. So, be professional. Set regular work times for yourself and don’t only work when you feel like it. One of the world’s most famous writers, Stephen King, is well known for working 9 to 5 each day of the week. He said that he does not wait to feel inspired to write. He sits at a desk and writes even when he doesn’t feel like it, because it was his job, resulting in a lot of best sellers. So, if you find you do not have enough time, then look at when and how you are working each day, week and month.

DO YOU NEVER HAVE ENOUGH TIME?

NOBODY EXPECTS THE SPANISH INQUISITION While nobody expects the Spanish Inquisition (you may need to be a Monty Python fan to get that reference) you can expect, that the unexpected will come along, and derail even the best laid plans. Ever noticed how your printer only gets a paper jam when you are in a hurry? It is like it can sense your desperation. This goes hand in hand with scheduling fewer items each day. It is wise to allow enough time to get things done when making a daily to-do list. You should always allow a little ‘play’ or extra time when making a schedule. Your Zoom meeting may be scheduled for 12 but Bob may run a few minutes late on his side, delaying you even though you were ready 5 minutes early. Thembi may arrive on time but not be able to get her camera to work or mic to unmute. Eskom may give you a nice loadshedding surprise right in the middle of your otherwise productive day. Scheduling less items each day and allowing for things to take longer than planned, is always wise. Plan for the unexpected.

DO YOU NEVER HAVE ENOUGH TIME?

REDUCE INTERRUPTIONS These days we have many ways for people to get in touch. They can text, whatsapp, email or call you. We have other things that can distract us. Background music, news updates, tv screens, app notifications and people of course. There are a million things that can distract us while we are trying to get things done. If you can reduce the likelihood of being distracted at important times, then you will get more done. Can you shut off those screens, find a quiet place, ask not to be disturbed and even put your mobile device on airplane mode for a few minutes while you attend to critical matters? Find ways to reduce distractions.

DO YOU NEVER HAVE ENOUGH TIME?

BURNING THE CANDLE AT BOTH ENDS JUST LEADS TO BURN OUT It is a common mistake to think that you can power through and get everything done by just working longer. As a kid, you may have tried marathon study cram sessions before exams. Sadly, this is not very effective. Your brain tends to punish you for trying to push it beyond what it can realistically handle. Companies that work their staff on endless overtime, often find that productivity just drops further. So, they push the staff harder still resulting in declining work quality and delays due to avoidable mistakes. By trying to do more when you are exhausted, you can make things a lot worse! So, be sure to try and work fresh and energetic. This may mean working for less time (counter intuitive we know) but you may find, that you get more done and do it better when you have physical and mental energy.

This may mean getting enough sleep each night and not burning the midnight oil trying to squeeze things in after dark. Skipping lunch to push through might actually end up making you less productive. A small micro nap or a walk in the park at lunch time might be just what your brain needs to charge up those batteries. Work fresh and energetic, not exhausted and drained.

DO YOU NEVER HAVE ENOUGH TIME?

CAN YOU MAKE MORE TIME? There are only 24 hours in a day. So no, you cannot literally ‘make more time’ but you might be able to find time in your day that you are not using effectively and make better use of it. Many of us have hidden free time each day. For example, if you drive to work, you can use the time to listen to an audio book. If you take the train or taxi to work, take that book along. You may be able to do a quick catch up on the news while shaving or something similar. Japanese families, who often get stuck in bad traffic, are known to have a catch up chat, and then let the kids begin their homework on the way home. By the time they fight their way through traffic and get home, the kids have had 30 minutes to do a significant portion of their assignments. Do you find you and your partner are not getting enough time together? Why not spend time preparing a meal together each evening? While chopping, dicing and slicing those veggies you will be

able to chat and catch up, as well as cut down on the time it take to get everything ready. Many hands make light work. If you are running short on time each day but spend 3 or 4 hours an evening watching TV or browsing Instagram, then you may be able to repurpose some of that time to do the necessary things. Find the hidden time in your day and see how you can use it better.

DO YOU NEVER HAVE ENOUGH TIME?

USING OUR TIME TO REACH REALISTIC GOALS Having goals in life is vital. Identifying what you need or want and working toward it can lead to success. How do we set realistic and achievable goals that we can use our valuable time towards reaching? Some things you can control and others you cannot. You may not be able to control when the next bus is coming to your bus stop. You may not be able to control whether your boss will ask you to work overtime or not, but there will always be things over which you do have direct control. As an example, let’s say that you may want to become the “boss” in your department. Being the boss is cool and you could get paid more and get more perks. But there are also aspects in that particular goal that you cannot control. The existing boss may not have plans to go anywhere. Management may not have any plans to replace the current boss. If they do begin looking for someone to fill the position then they (not you) will be the ones

making the decision about who is hired. So, what could you rather set as a goal, over which you do have some control? You could decide to gain new skills that will make you a more valuable employee. This is something that you have more direct control over. You could sign up for an online course or distance learning, or take some time off to do a short course that will give you better skills. These new abilities will make you a better employee. You will be better at your job than those around you. When the time comes to look at who will be promoted, you will stand out among your peers. You may not be able to control whether the bus will come to fetch you on time for work, but you can personally control when you get to the bus stop. Could you get there a little sooner to catch the earlier bus? Would getting there a few minutes earlier mean that you are less likely to miss the bus if, by some miracle, it is running early? By focusing on the things you can control, and lining these things up with your life goals, you are more likely to accomplish them and make good use of your time. If one of your goals is to get out of debt, then you should allocate time each month to make sure that your debts are being paid, that you are sticking to your budget (and have a budget in the first place) and tracking the payments and balances. This way you are using your time in a way that lines up with your goals.

DO YOU NEVER HAVE ENOUGH TIME?

THERE IS NO TIME LIKE THE PRESENT If you have recently felt like you are always running out of time, that you have no time for yourself or that you cannot work on the important things in life because you are just chasing your tail every day, then you may need to look at how you are using your time. Making a list of what you need to do and prioritizing it is a great start. By setting realistic daily goals and allocating time to the most important things first, you will find that you can make the best use of your time. Plan for the unexpected and align your time with what is important to you. Don’t burn out chasing things that will not benefit you. By looking at how you are using your time, you may even be able to find some hidden time to get additional things done. Time is our most precious resource. While you can always make more money, you cannot make more time. So, use it wisely.

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DEBT REVIEW LESSON #2

If you miss a debt review payment then your credit providers have the legal right to stop helping you through debt review and to start new legal action. Never miss a debt repayment.

BEWARE BLACK FRIDAY

HYSTERIA

We all love a good bargain. The people at the big brand stores know you do, and are preparing to cash in on your Black Friday hysteria FOMO (fear of missing out).

There is a saying: "What the eyes see, the heart wants". Yes, marketers know they need to get you looking at specials and discounts. So, they flood your inbox and social media with adverts for nice things. Things that you probably would like to own but may not really need right. If they show it to you over and over again with flashing pop-ups that says things like: ‘Sale!’ ‘Never To Be Repeated’, Prices Slashed’ you may just be persuaded to part with your hard earned cash. At this time of year, retailers are desperate to make some sales, they may indeed begin to lower their profit margins. So, there may indeed be some good deals. The challenge for those who are sticking to a monthly budget is to see if they have already set aside the funds to make such a purchases. It would be foolish to miss or short pay on a debt review repayment, for example, to splash out on a new TV only to end up having their entire debt review fall apart. This could result in losing more than the fancy new TV. Often, at this time of year, one retailer may claim to offer an amazing special with a huge discount, whereas, the same item is offered by another retailer for the same price, and sometimes even cheaper. So, be cautious, shop around, shop with your head and not your heart, and stick within your budget (or what you have already saved toward such a purchase). Remember there will be another Black Friday next year, and the next, and the next. Beware of being swept along in the Black Friday Hysteria!

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THE WORLD’S

BIGGEST TAX FRAUD

SCHEME EVER

THE WORLD’S BIGGEST TAX FRAUD SCHEME EVER

JUST A LITTLE OFF THE TOP... Over a thousand people around the world are currently being investigated in what is being called the biggest tax fraud case ever. The fraud may have cost the European Revenue Service (who are like SARS but for Europe) more than 55 Billion Euros between 2007 and 2012. You may wonder what that looks like in Rands. Well, if your brain can process such a big number, it is around R950 000 000 000. Yes, that is 950 thousand million… The supposed fraud involves buying and selling shares rapidly to different people who are part of the scheme. Then the members of the syndicate would claim back a withholding tax on dividends, and here is where it gets dodgy…they would claim twice because of a “loophole” that existed at the time.

THE WORLD’S BIGGEST TAX FRAUD SCHEME EVER

LOOPHOLES AND BAD INTENTIONS The supposed loophole existed because, at that time, there was an interpretation of the tax code which appeared to allow multiple people to claim ownership of the very same shares. So, more than one person could claim a refund on tax that was paid once. Prosecutors say that those who were involved (doing these trades over the years and these multiple claims) knew exactly what they were doing was wrong, and were doing it with the specific objective of enriching themselves. Mr. Hanno Berger (who came up with the scheme, and seems to have led the group involved in such double rebate claims) says his actions were allowed by the loophole, and were within the law. He does not feel he did anything wrong and merely used the system, as it existed at the time, to benefit himself in a way that was allowed. Now that the interpretation of the law has changed, he no longer does any such double claims. Mr. Hanno Berger was finally extradited from Switzerland in July this year and arrested.

THE WORLD’S BIGGEST TAX FRAUD SCHEME EVER

VARIOUS BANKS IMPLICATED Leaked documents about the investigation, which have since become public, feature allegations towards employees at many international banks, including Investec. The part of the overall Investec brand that operates in the UK (and Ireland in particular) has been in the German prosecutor’s target site for years, since the supposed fraud was first discovered. It seems that, according to reports on the matter, Investec gave lots of short loans of between EUR100 000 000 and EUR340 000 000 for the trades that resulted in the double rebate claims. These loans and trades were happening again and again, and it has also been said that sometimes Investec themselves would act as a broker, and even carry out some of the trades involved. Allegations exist that management at Investec plc, might have been active in facilitating the fraud which took place. Investigations are happening into who exactly at the brand was aware of what, and who authorised these loans and trades.

THE WORLD’S BIGGEST TAX FRAUD SCHEME EVER

HOLDING PEOPLE ACCOUNTABLE Authorities have now eventually begun the lengthy process of charging those involved. Arrests and prosecution will no doubt continue over the foreseeable future since so many parties are involved from all around the world. Investec in SA have been quick to point out the distinction between the arms of the overall Investec brand, saying that they were not involved. They have also mentioned that Investec itself is investigating the matter internally and are cooperating with the investigation by outside authorities.

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WHY A DEBT COUNSELLOR CAN GET DEREGISTERED

PROFESSIONAL DUTY A Debt Counsellor has a serious duty to their clients. As professional counsellors they have to ensure their client’s rights, under the National Credit Act, are protected, and to ensure that they properly assist people through the debt counselling process. The National Credit Act (NCA) and regulations set out the duties a Debt Counsellor has to fulfill. The NCA also makes provision for the National Credit Regulator (NCR) to take a Debt Counsellor to the National Consumer Tribunal, if they fail to do their job properly. The National Consumer Tribunal (NCT) is able to issue large fines, or even take away the registration of a Debt Counsellor, if they find that the Debt Counsellor has not been doing their job or sticking to the regulations. This means the Debt Counsellor can no longer practice, and this often results in the NCR choosing a different Debt Counsellor for the innocent clients.

THE WORLD’S BIGGEST TAX FRAUD SCHEME EVER

MISTAKES AND SLOPPY WORK So, why might a Debt Counsellor find themselves in trouble with the Regulator and dragged before the Tribunal? If a consumer complains to the NCR about a Debt Counsellor, then the NCR is allowed to investigate that Debt Counsellor and see if there is a real issue. If the Debt Counsellor skipped steps or messed up the process, then they could end up in a lot of trouble. In the past, when the NCR has taken Debt Counsellors to the NCT because of complaints, the points raised have often been technical, like what specific day a form was sent, or how many days were there between doing X and Y as required by the National Credit Act. In some cases, the NCR has raised points that relate to guidelines that they themselves have issued (not the Act or regulations). Over the years, a small number of Debt Counsellors have been fined, and some have even been removed from practicing. Although this is a small number it can happen.

WHY A DEBT COUNSELLOR CAN GET DEREGISTERED

SA CREDIT SOLUTIONS Recently, one Debt Counsellor, who had previously been issued with a R250 000 fine, ended up in trouble with the NCT again. This was because of 4 consumer complaints from 2017 that the NCR investigated. The NCR investigated and found that the Debt Counsellor had been making mistakes and not sticking to their guidelines and the Act. In this case, the NCR found that the Debt Counsellor often sent two forms (a 17.1 and 17.2) on the same day without waiting to get information back from the clients’ credit providers. Instead, the Debt Counsellor just relied on information from the credit bureaus. The Tribunal also heard how some consumers, who asked for help had been told they have 48 hours to consider entering the process but that the Debt Counsellor had registered the consumer on the NCR’s database as already applying for debt review. The Debt Counsellor had also not sent the Regulator statistics every 3 months as they are required to do.

Other concerns related to accepting legal fees, as per the NCR’s fee guideline for legal work that had not yet taken place, even though sufficient time had passed. In one consumer’s case, the bank had not received payments with the accurate account number, and as a result, the bank used the opportunity to take the consumers car away and sell it on auction. All of these errors (and more) resulted in the NCT saying that the Debt Counsellor must stop practicing. They also issued a big fine of R350 000, and said that the Debt Counsellor had to bring in an auditor and report on various matters and refund clients for many of the fees they had received over the years.

THE WORLD’S BIGGEST TAX FRAUD SCHEME EVER

CONSUMERS CAN COMPLAIN, IF THERE ARE PROBLEMS Now you may not want your Debt Counsellor to lose their business, home and livelihood because of your complaint, but at the same time, you have the right to receive good service and assistance. If you have not been getting the level of service that you want, then you are able to complain to your Debt Counsellor. You should let them know that you are unhappy or worried. Many people make the mistake of complaining to everyone except the Debt Counsellor. That does not help. Often they will complain to an administrative staff member at the Debt Counsellor’s practice. Or they may go onto Hello Peter and complain, or even go directly to the Regulator before even speaking to the Debt Counsellor. If you have a concern, then first talk to your Debt Counsellor. Some consumers are not very involved in their own debt review, and embarrassingly don’t even know their Debt Counsellor’s name. Be sure

that you know who your Debt Counsellor is, and how to reach them directly. Speak to them and discuss any challenges that come up. For example, you may be getting harassed by a credit provider. This is obviously not the Debt Counsellor’s fault, but they can help you lodge a formal complaint at the credit provider or collection agent’s company or association. If that is ignored they can help you lodge a complaint with the NCR. Your Debt Counsellor will be able to guide you through many difficult situations, but only if you communicate regularly with them.

THE WORLD’S BIGGEST TAX FRAUD SCHEME EVER

WHEN YOUR DEBT COUNSELLOR JUST WON’T HELP If you are not getting any help from your Debt Counsellor, despite asking many times (and when they are not doing what they should) then you can complain to the association they belong to, or even the NCR. Hopefully this will see the situation sorted out promptly (and not taking years and years). When it comes to dealing with debt, you are talking about your financial future. So, it is important to get the full protection of the National Credit Act and debt counselling. Bad Debt Counsellors have no place in the industry, and are no better than illegal debt mediators who are full of empty promises. You deserve the best help and professional advice. So, make sure to communicate with your Debt Counsellor regularly, and even complain if they are making mistakes or refusing to help you.

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DEBT REVIEW LESSON #3

Debt review is a great time to make big changes that are needed in your life. It is a fresh start. Take advantage of this time to make changes and improve all parts of your life.

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PARTNERSHIPS How does the partnership between Meliorleaf and Debt Counsellors work? We keep you advised regarding your clients to ensure they are covered properly, and remain covered. We regularly remunerate you, depending on what you choose to do: Some debt counsellors want to be actively involved in arranging and managing insurance relationships, and we equally share commissions earned. Some debt counsellors are registered Financial Services Providers who can advise their clients and provide a full brokering service, thereby being entitled to earn the full commission. Meliorleaf understands that some debt counsellors cannot, or do not want to be actively involved, but still want their clients to be properly insured: For these debt counsellors, Meliorleaf can offer a fully outsourced turnkey solution. What’s more, we will still provide you with ongoing remuneration on all active policies.

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Members can join us on Facebook as well discuss the latest court case rulings, industry challenges and more

www.allprodc.org

Debt Counsellors Collective The iDDC would like to hear from members and other DCs about the struggles they face and continue to face as a consequence of the lockdown. What issues need to be escalated to the NCR?

If you would the BDCF ple HE

d like to join ease email us ERE

Join us on the DCASA Members Facebook Page: One of the fastest ways to engage with other members for advice, tips, credit provider contact info and more. www.dcasa.co.za

NDCA are ready to help consumers who are struggling with debt. Visit our site for more information ndca.org.za

A LEGAL VIEW

WHAT’S WRONG WITH FORM 17.3S? The Problem with Form 17.3 Is it Doesn’t Really Exist The NCR, to their credit, has recently been very proactive within the debt review space by issuing guidelines regularly and hosting webinars on various aspects surrounding debt review. These have been helpful for consumers, Debt Counsellors and credit providers.

One of the guidelines the NCR published is about the Form 17.3 for change in circumstances. The guideline is extensive and provides much needed clarity for Debt Counsellors who are assisting consumers who are experiencing changes in their circumstances that effects their monthly payments to credit providers. The problem with this guideline is that it is not legally binding on credit providers. A further problem is the guideline refers to a Form 17.3 that simply does not exist anywhere in the National Credit Act or its Regulations. Go have a look. You won’t find it.

What is a Form 17.3? The idea around Form 17.3 was that when a consumer is experiencing a change in circumstances, maybe due to some unplanned emergency, the Debt Counsellor may inform the credit providers with the relevant Form (17.3) of the change and request that payments to the credit providers be reduced or reduced for a certain period. For example, this might be a consumer who is going on maternity leave for 4 months and will only be earning UIF in this period. The Debt Counsellor will then complete Form 17.3 explaining the situation and request that credit providers do not take any legal steps during this period where they will not be getting their usual planned payments or letting them know that the payments will be less than usual.

Learning from Problems with the Old 17.4 The idea around the Form 17.3 is noble but unfortunately it does not solve the problem it is supposed to address and in its current form a

A LEGAL VIEW Debt Counsellor could just as well send these notifications on a postit note because it will, legally, have the same effect. This conclusion was confirmed years ago in the matter of Rougier v Nedbank Ltd 27333/2010 wherein the court stated that the old very similar Form 17.4 (which permitted a Debt Counsellor to withdraw from a consumer) did not legally exist and that there was, in actual fact, no mechanism in the NCA or its regulations that allowed it. The position would be exactly the same if a credit provider does not accept a Form 17.3 and a Debt Counsellor would not be able to go to court and rely on the Form 17.3 for any sort of official or legal relief.

The Law South African law has, inter alia, the following sources namely the Constitution, Legislation, Case Law and Common Law which contributes to the law as we know it. These sources make up our law and any other source, like a guideline, will not be enforceable if it is not also found in one of the abovementioned sources. It is further trite law that a regulation or guideline cannot be used to interpret or amend the governing statute (National Commissioner of Police and Another v Gun Owners of South Africa (561/2019) [ZASCA] 88 (23 July 2020) para 44).

Are Desperate Consumers being Left Legally Exposed? Case law has repeatedly made it clear that a guideline is not enforceable and that parties always have to refer back to the Act and legislation when determining any issue. One of the only places where these guidelines seem to carry weight is at the NCT when Debt Counsellors are in trouble with the Regulator and they ask the NCT to fine the Debt Counsellor. In many of those cases the NCT has referenced guidelines issued by the NCR. However, the Magistrates Courts and High Courts do not seem to be as in love with these guidelines as the NCT. Seeing as the Form 17.3 is not currently in the Act or any Regulations it is of no force and effect, legally speaking. A Form such as the Form 17.3 could, and should, however serve a very important purpose in the debt review process. It is something that is desperately needed. Many consumers experience some sort of change in circumstances that effects their payment at some point during debt review. With a big push towards annual reviews the industry is going to need effective methods to reduce the payments originally planned towards debts through debt review. If this is possible, without resorting to court each year, that will be a great financial relief to consumers. Unfortunately, for the moment these consumers have no such protection offered to them by the NCA. This means that many of them will eventually stop making payment through the debt review process because of this glaring omission in the NCA. All this begs the question: Has the time come to finally formalise role of the Form 17.3 by way of legislation?

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