THE AND
PROS CONS OF DEBT REVIEW
E XCE LL ENCE IS D OIN G ORD IN A R Y THING S
E XT R AO RD I N A RI LY W E L L
– John W. Gardner
PROS CONS OF DEBT REVIEW THE AND
PROS & CONS OF DEBT REVIEW
THE WHAT'S WHAT OF DEBT REVIEW
Some people will tell you that debt review can slash the amount of your monthly debt repayments to all your credit providers, but they may also warn that while you pay off your debt, you will not be able to get more credit (as if that’s were a bad thing).
Are these the true Pro’s and Con’s of debt review, or is it slightly more complicated than that?
Let’s talk about what makes debt review great, but also challenging for some people.
Here are the real Pro’s and Con’s of debt review.
PROS & CONS OF DEBT REVIEW
A REAL PLAN
When you are trying to avoid collections calls, and are too scared to open statements and angry letters from credit providers, it can seem impossible to make a sustainable plan to get out of debt.
At best, you might have a plan to try keep as many of your credit providers somewhat happy this month by paying a little to this one or that one. But this is very short term.
When you begin debt review, a professional Debt Counsellor will craft a personalised debt repayment plan to the last rand and cent. They will be able to tell you how many days, weeks and month it will take for you to sort out your debts.
This plan (once ratified by court) is a realistic plan. It’s not some “pie in the sky” dream or wishful thinking, it’s real!
PROS & CONS OF DEBT REVIEW
YOU CAN FINALLY BE HONEST WITH YOUR FAMILY
When your debt becomes overwhelming it can be difficult to tell your family, or partner, the full extent of your debt and the resulting stress.
After all, you love them and do not want to make them stress. So, you hide things from them…which makes you feel even worse.
When you enter debt review however, that changes. Now you have a proper plan in place, you don’t have to hide anything anymore.
You can be honest in talking about your debt because you now have a realistic plan that is going to work.
This means, no hiding of anything. It means better communication without fear. That will help strengthen your relationships with those closest to you.
PROS & CONS OF DEBT REVIEW
A FRESH START
Starting debt review gives you an amazing chance to do better in life.
We all know that we should be eating better, exercising more, spending quality time with family and looking after ourself.
We just don’t do it, but now you can.
Debt review is a clean slate, a fresh start.
You can finally break all those bad habits you actually hate and start afresh.
PROS & CONS OF DEBT REVIEW
TAKE
BACK
CONTROL
OF
YOUR FUTURE
Being deep in debt can feel like sinking into quicksand. It’s like you are just slowly being overwhelmed, and no matter what you try, things just never seem to work out.
It is frustrating and can leave you feeling stuck, unable to make any progress in life, it robs you of your future.
Debt review can change all that.
Debt review allows you to, almost immediately, sort out the money side of your life so that you can finally start focusing on everything else.
It’s a huge weight off your shoulders, freeing you up to use your time and energy on things to build your future.
PROS & CONS OF DEBT REVIEW
SOMEONE TO HELP YOU
If you have been stuck in debt and dealing with scary letters, sms’ and calls, it can be overwhelming.
Sometimes you wish you had someone that you could really be honest with, and share your stressful situation, that won’t judge you. Your friends and family might think you have failed in some way and you naturally don’t want to disappoint them or look weak.
One of the best things about debt review is to finally have someone who you can be 100% honest with. Honest about the extent of your debt, the reasons why you are stuck and your feelings of frustration.
Best of all, a Debt Counsellor can give you honest advice (they won’t sugar coat it like your mom might). They know the laws, they know what is and isn’t possible, and they will help guide you through the process.
PROS & CONS OF DEBT REVIEW
AMAZING CONCESSIONS FROM CREDIT PROVIDERS
We can’t really talk about debt review without acknowledging that the process does give you access to the best department at the banks and credit providers.
These amazing people will often be permitted to offer you amazing discounts and concessions you can’t get elsewhere.
Depending on your unique situation, you could end up not paying any fees on your accounts. You could have your interest rates slashed, and it is likely that you will get to pay off your debt over much longer time than before. That means no outrageous demands for payment every month.
It also means that you should be able to realistically pay off your debt over time, if you stick to the plan. You will have so much less stress and will end up paying a lot less overall than you might otherwise have.
For many people this is the main Pro of debt review.
PROS & CONS OF DEBT REVIEW
BUT… IT’S NOT FOR EVERYONE
There are 10 Million South Africans who are many months behind on debt repayments, and are heavily over indebted.
Debt review has so many Pro’s, it could solve all their problems.
So, why isn’t everyone in debt review?
Well, there are some things that can hold people back from starting this amazing process. Let’s look at a few of the real Cons (and no, it has nothing to do with a silly listing with the credit bureaus).
PROS & CONS OF DEBT REVIEW
YOU MIGHT NOT HAVE WHAT IT TAKES
At the moment, around 40% of people who begin debt review each month do not even last 36 months in the process.
Many find the transition to a cash lifestyle, and regular payments simply too hard to manage.
They are too deeply addicted to credit, and living beyond their means. They are easily bumped out of the process when any little obstacle comes along.
Of course, the credit providers are more than happy to reestablish all those fees and missed interest amounts so they can make even more money from these consumers.
So, a real Con is that you might not have what it takes to see the process through from start to finish.
PROS & CONS OF DEBT REVIEW
YOU HAVE TO PAY EVERY MONTH
When you enter debt review, you can no longer just reach for the credit card, you have to plan and stick to your budget.
However, you may not have learnt to do that well, so it can be a challenge (even if you do get help from a Debt Counsellor).
You might be so used to skipping some payments whenever you feel like it, that having to steadily pay on time, every month might actually be too hard for you.
PROS & CONS OF DEBT REVIEW
YOU MAY HAVE TO ADJUST YOUR EXPECTATIONS
Getting help through debt review can mean lower repayments, longer to pay and a realistic budget on how to make ends meet. It also means a Debt Counsellor is available to give you quality advice whenever you need it.
But some people get confused about how the process works, and just how much your Debt Counsellor can control.
Credit providers might do unexpected things during the process, that can make you doubt that it is working. The court process can cause delays or stress and you might have expected your Debt Counsellor to be all-powerful.
The truth is, Debt Counsellors have to work within the set of laws and rules about dealing with debt. That can mean that sorting out some challenges can take longer than you would like. That can be frustrating and you may need to adjust your expectations about how quick things work.
PROS & CONS OF DEBT REVIEW
YOU HAVE TO LOOK DEEP INSIDE
Spending money can make us feel powerful. We might feel that our personal worth is linked to the things we own and how we live. Relationships with money are complicated.
Having to switch to a budget conscious, cash lifestyle might make you feel “less”.
Focussing on paying off debt and holding back from spending, like we used to, can be too challenging for many people, causing them to drop out.
Perhaps getting to grips with what is really important in your life and what makes you happy, is simply too hard.
PROS & CONS OF DEBT REVIEW
YOU HAVE TO MAKE REAL CHANGES
Entering debt review can give you the chance at a fresh start, but only if you are prepared to make it work. You cannot just do the things you did in the past, and expect things to work out simply because of debt review.
You have to sit down and really analyse your life. You might need to change where you live, where you shop, how you spend, the brands you use, the places you go and the way you spend money.
Debt review works best when you fully embrace the process. When you lean into the process you will often find you are able to get out of debt faster than planned. By making changes to your lifestyle and spending you not only do better, you set yourself up for a brighter financial future.
The question is: Are you really prepared to make the needed changes?
Most people are not.
PROS & CONS OF DEBT REVIEW
THE PROS AND CONS
Debt review is an amazing process that has literally saved the lives and sanity of hundreds of thousands of South Africans.
For those who qualify, it can help end collections harassment, it can provide a realistic repayment plan that allows for a fresh start and easy planning for the future.
Debt review comes with amazing concessions from credit providers but can also challenge people. It requires real change, adjusted spending behaviour, thinking and lifestyle changes, which some people struggle with.
These are the real Pro’s and Con’s of debt review. If you have what it takes, debt review will free you. If you are scared of the Con’s then maybe don’t start the process, it won’t work for you.
PROS CONS THE AND
FROM THE EDITOR
There are normally pros and cons to anything in life. From small choices like getting out of bed (Pro – you get to have breakfast; Con – its so comfy under the blankets), to big choices like how to deal with your debt.
This issue we dive into the real pros and cons of debt review. They may not be exactly what you thought, since dealing with debt is actually quite a complicated topic that goes beyond just fees or credit bureau listings.
With slow economic growth and looming VAT increases and tax hikes, along with bigger bills from Eskom (while they shut the power on and off just to remind everyone what happens if we don’t pay) things are tight. People need relief and it is amazing what debt review can do to improve a person’s life.
There are lots of great debt review practices in South Africa with some of the best Debt Counsellors in the world helping consumers deal with their debts. In many ways, these are the true “Pros” of debt review. Sadly, there are some who still offer subpar service or purposely offer weak service and then have
someone call and offer ‘get out of debt review’ services. These are in many ways the “Cons” of debt review. Let’s hope we see the back of them soon. Certainly, the NCR is making efforts to shut them down.
In this issue we also have tips, advice and more. So, check out how debt review is done in Switzerland or read up on a recent court case and its implications. We have news, reviews and more jam packed into this issue for you.
So, if you have made the choice to enter debt review then do not easily be thrown from your plan. Do everything in your power to fight the cons and focus on the pros. That way you will stay motivated to make those payments and continue on your journey to become debt free.
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. We are an Ai friendly publication and enjoy working with our future overlords.
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FEBRUARY WAS
DEBT AWARENESS MONTH
TALK
ABOUT YOUR DEBT
Most of us try avoid thinking about debt. After all, debt is stressful and scary. As a result, we can lose track of our debt situation. And without knowing exactly how much we owe everyone it can be hard to put a realistic debt repayment plan in place.
This is one reason why National Debt Awareness Month is such a great idea. First introduced by Debt Counsellors, the idea is for South Africans to take a realistic look at their debt and then hopefully do something about it.
This month Debt Counsellors across the country promoted National Debt Awareness Month on websites, social media and the press. There have been adverts, posts, reels, podcasts, press briefings and more. All aimed at getting people talking about their debt.
If you need help figuring out how much debt you have or what to do with your debt please talk to an NCR registered Debt Counsellor for free advice.
DEBT REVIEW
Being Over Indebted
To qualify for debt review you need to be (or soon about to be) “over indebted”. What does that mean?
If a person cannot pay for all the things they need each month (like groceries, electricity, transport etc) and at the same time pay all their credit providers what they are supposed to at the end of the month. Then they have too much debt. They are “over indebted”.
SMART WAYS TO SAVE ON TRANSPORT
SMART WAYS TO SAVE ON TRANSPORT
TIPS TO SAVE
We all know that transport costs are a large budget item each month. And with rising fuel costs it is important to look for ways to save on transport. Here are 8 money saving tips that may help you make adjustments to your transport habits.
1. Use Public Transport Where Possible
Minibus taxis, buses (eg. MyCiTi in Cape Town), and trains (eg. Gautrain) can be cheaper than driving daily, especially when you also factor in petrol, parking costs, vehicle insurance and maintenance costs.
2. Carpool with Colleagues or Friends
Sharing a ride with others traveling in the same direction reduces petrol and toll fees. Apps like JustGo or simply arranging lifts whenever possible within your network can help.
SMART WAYS TO SAVE ON TRANSPORT
3. Plan and Combine Trips
Reducing unnecessary trips by combining errands into one longer outing can cut down fuel consumption and wear and tear on your car. Try chose times when traffic flow is at its best.
5. Try Lift Clubs for School Runs
Parents can take turns driving kids to school rather than each family making a separate trip, reducing fuel costs.
7. Walk or Cycle for Short Distances
If it's safe and practical, walking or cycling to work or local shops can save money while also improving health.
8. Work Remotely or Hybrid
For those who can, reducing the number of commuting days by working from home a few times a week can save significantly on fuel and transport fares. Even if your company does not yet have this as an option, you might be able to make the suggestion.
DEBT REVIEW
When can you enter Debt Review?
When a consumer is over indebted they can apply for debt review.
A Debt Counsellor can work out whether they appear to be over indebted and can then say that the person is able to enter debt review. This allows a consumer to start the debt restructuring process. A court will later rule on whether the consumer is indeed over indebted and turn any proposals into a court order about how repayments will be done.
DEBT MANAGEMENT AROUND THE WORLD
THE WORLD
NATURALLY NEUTRAL SWITZERLAND AROUND
It is said around 8% of the Swiss population are over indebted and are several months behind on debt repayments. Fortunately, these consumers can make use of debt counselling to help out.
Debt counselling is part of the Swiss Debt Enforcement and Bankruptcy Act (DEBA). As in South Africa, Swiss consumers facing debt problems can negotiate directly with their credit providers to try make voluntary arrangements. If these fail then consumers, in the different areas (Cantons), can reach out to local public debt counselling centres.
At these organisations, debt advisors or debt counsellors will consult with the consumer and try to help with budgeting and negotiations with credit providers. Many organisations offer these services for free or a small fee.
AROUND THE WORLD
There is no specific qualification for debt counsellors although many have training as financial advisors or social workers. Most debt repayment plans are designed over 3 years and can include all sorts of debts such as loans, credit cards, cars and bonds. While in the process consumers are not listed on any credit bureaus and are simply encouraged not to take on extra debt.
If everyone agrees to the restructuring plan then the consumer simply has to stick to the plan and pay off their debts. During this time credit providers are not allowed to take further legal action. Matters can however end up in court if not everyone is happy and, in such cases, it can take weeks or months to finalise the judicial restructuring agreement. In such cases the debt counselling centre will assist the consumer to prepare the needed papers and the consumers' former obligations can be suspended.
If consumers do not stick to the voluntary arrangement or court order then they can face new legal action from credit providers and may lose assets or be declared bankrupt.
In many ways the process is similar to the South African debt review provisions but are not as heavily regulated. Repayment terms are shorter and qualifications of those who practice not clearly defined. There is no single regulator who oversees the process in the country but matters are rather dealt with on a regional or canton bases.
Since matters are not reported to one central regulator and are not shown on credit records it is unclear how many consumers are currently making use of debt counselling in Switzerland at present.
DEBT
REVIEW AND LEAD GENERATION
THE RECENT STRUGGLE WITH LEADS
People do not automatically just sign up for debt review.
The vast majority of people have to be told about debt review: what it involves, the benefits and of course, who to speak to about getting help.
Truth is, most people need to be told about these things several times. All that takes time, money and effort.
And only then do they even consider maybe signing up.
If you make use of lead providers or generate your own leads to put you in touch with potential clients then you may have noticed some recent issues including:
• Higher costs;
• Lower quality and;
• Lack of consistency in volumes
All these things can have a dramatic effect on your bottom line. Recently a lot of DCs have been left frustrated and disappointed. For many it has negatively impacted on their client acquisition numbers and many say that overall, their restructuring amounts have dropped.
LEAD GENERATION
So, do you just spend more and hope to solve the problem that way? Sadly, just spending more does not automatically mean better leads and clients with higher affordability. The two are not exactly linked.
You may be spending more than ever advertising your services on Facebook, LinkedIn, TikTok or where ever but the quality of your leads could still be dropping. If so, you are not alone.
Some large practices have even supposedly had to shut their doors over such issues.
LEAD GENERATION
ARE YOU GETTING LESS FOR MORE?
Why might you be seeing a sudden increase
in cost or decrease in quality?
Something that may be a factor is that rules about advertising regarding debt and debt review can change on the various platforms out there.
Lead generators do not make the rules, they simply have to follow them to ensure compliance. Making such changes results in added costs. It can also lead to the quality of leads dropping as advertising has to be placed in front of wider audiences who are not as niche.
That can result in lower quality leads.
If you do your own lead gen, you probably have been frustrated when platforms change the rules, sometimes multiple times in a year. It can be hard to keep up.
EMBRACING THE FUTURE
Everyone wants to know how you can try future proof your practice against increasing costs or lower quality.
Well, with things changing so rapidly it is tricky but technology is certainly going to play a big part. And these days you can’t talk about technology without getting into a chat about Ai.
Dale Johnson of 1on1 Lead Generation who has been helping people find clients for over 8 years says: “We are always trying our best to get ahead of the problem while improving our service. Ai can be part of the solution.”
He points out however that even with Ai there are challenges. “Ai has made it easy for just about everyone to generate leads but this has actually made the market extremely saturated and ironically contributes to the increase in cost for leads”.
But just like Ai is working its way into all our apps, programmes and services we use in everyday life, Ai is becoming integral to the world of marketing and leads. You simply cannot ignore it. The trick seems to be to make the best use of it and to use the best type of Ai that lines up with your budget.
That could be simple things like Ai grammar checking your emails and advert copy or perhaps, on a more sophisticated level, integrating Ai Chatbots on your websites etc. The challenge is that (as John Connor will tell you) if you use Ai to generate your own leads it can go horribly wrong if not utilised correctly.
Dale says at 1on1 Lead Generation they have integrated their fancy Ai lead gen system “directly into the WhatsApp Api and WhatsApp business suite” and that they “can now generate leads and pre-qualify them on WhatsApp”.
Since fancy Ai technology is doing some of the heavy lifting, it is one of the ways they have successfully helped keep costs manageable for their DC clients. Interestingly, they say that they have even had clients ask them to help them replicate their Ai systems (since many people prefer to manage their own lead gen themselves). The cost is lower than you might think. So, it is clear Ai is the way of the future and seems set to be the next big thing in lead gen.
UNDERSTANDING LEAD GEN BETTER
Over the next few issues, we are going to be taking a deeper look at lead generation including the mechanics, ethics and nuances around the topic.
We will dive into PoPi and how to stay on the right side of the law and best practices and more.
Like many other areas of the debt review industry, the topic is quite complex and the solutions on offer are fascinating - from “old school” to the Ai of the future we hope to take a look at it all.
Be sure to check out upcoming issues for more on leads.
CREDIT PROTECTION
CREDIT PROTECTION
Have you applied to go under debt review? Are you restructuring your monthly expenses? Would you like to insure your debt?
Why not insure all your outstanding accounts in a single ONE Credit Protection Policy?
Have you applied to go under debt review? Are you restructuring your monthly expenses? Would you like to insure your debt?
BENEFITS OFFERED:
• Death – we settle the account
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BENEFITS OFFERED:
• Critical Illness – we pay your installments for 3 months
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• Temporary Disability – we pay your installment for 12 months
• Permanent Disability – we settle the account
At a rate of R2.95 per R1000 unsecured/short-term credit and R2.00 per R1000 on mortgages and you can now insure your debt for less.
• Critical Illness – we pay your installments for 3 months
• Retrenchment – we pay your installments for 12 months
The following financial obligations or debt can be covered on the ONE Credit Protection Policy:
• Credit Cards
• Overdrafts
At a rate of R2.95 per R1000 unsecured/short-term
and R2.00 per R1000 on mortgages and you can now insure your debt for less.
• Personal Loans
• Home Loans
• Retail Accounts
The following financial obligations or debt can be covered on the ONE Credit Protection Policy:
• Rental Agreement
• Credit Cards
• Maintenance Orders
• Overdrafts
• Personal Loans
For further information please speak to your Broker, Debt Counsellor or alternatively contact your regional ONE office.
• Home Loans
• Retail Accounts
• Rental Agreement
• Maintenance Orders
0861 266 562 admin.debt@one.za.com Terms and Conditions Apply
For further information please speak to your Broker, Debt Counsellor or alternatively contact your regional ONE office.
Legal MATTERS
SCA RULING THROWS OUT BANK STRATEGY
FOR QUIETLY AUCTIONING CLIENTS’ HOMES
Due to the introduction of the NCA in 2007 the legal landscape has shifted. This means that an age old legal practice, that allowed banks to sell off properties from defaulters without going to court, is now illegal.
The South African Supreme Court of Appeal case Absa Bank Limited v Johan Serfontein and Another deals with an acknowledgement of debt which also included a power of attorney and whether the arrangements made were legal or not in line with the National Credit Act (NCA).
The heart of the case revolved around whether an Acknowledgment of Debt (also called a AOD) and the Power of Attorney (POA) between the Bank and the Serfonteins (the people who owed the bank money) was valid under the NCA, or whether it contained unlawful provisions. In this matter the case had already gone to High Court and it had said that the AOD & POA was a supplementary agreement with unlawful provisions, contravening sections of the NCA.
The Bank then took the matter to the Supreme Court hoping to get the ruling over turned.
Absa Bank Limited v Johan Serfontein and Another
What Happened
Mr. Serfontein had an overdraft facility with ABSA. The facility was secured by mortgage bonds and Mr. Serfontein senior acting as surety. After Mr. Serfontein defaulted, ABSA initiated negotiations, resulting in the AOD & POA.
The AOD & POA, which the Serfonteins felt was signed under duress, granted ABSA the power to sell the Serfonteins' property. The AOD & POA included a pretty standard acknowledgement of debt but also came with a power of attorney for ABSA to sell the property, and very specifically a clause stating that the NCA did not apply to this agreement.
Since the Serfonteins were not making the agreed payments on their debt, ABSA tried to auction the property and later concluded a deed of sale to recover their funds.
• The Serfonteins then legally challenged the AOD&POA, arguing that it was what is known as a prohibited supplementary agreement under the NCA. The Matter went to High Court and it ruled for the Serfonteins saying that the AOD & POA was void, since it contravened the NCA.
The Supreme Court of Appeal
If you are unhappy with a ruling from the High Court and feel serious mistakes were made in the ruling, for one reason or another, it is
possible to appeal the matter to a higher court, namely the Supreme Court of Appeal (only one step down from the Constitutional Court).
The SCA then had a few things to consider when looking at the ruling from the High Court.
• Was the AOD & POA actually a supplementary agreement?
• Did it contain provisions unlawful under the NCA?
• Were the Serfonteins induced or required to sign it?
• If unlawful, was the High Court correct in declaring the entire AOD & POA void?
The Supreme Court of Appeal Ruling
In February 2025 the SCA ruled in favour of the consumers and told the bank they had made some serious mistakes based on old practices that were no longer valid. A lot of that had to do with the National Credit Act and the protections offered to consumers since 2007.
A Supplementary Agreement: The court determined the AOD & POA was a supplementary agreement because it dealt with the same subject matter as the original agreement, namely the regulation of this particular credit and its repayment.
Unlawful Provisions: The SCA found that the AOD & POA contained provisions that tried to exclude the application of the NCA and allowed ABSA to execute against the immovable property without a court order. That’s not legal.
LEGAL MATTERS
Parate Executie
Attorneys know all the legal terms but most of us don’t so you might wonder what is ‘Parate Executie’?
No, its not being executed by pirates (even though it seriously sounds like it, or perhaps death by parrots?).
It is an old common legal term that refers to a clause in a mortgage agreement that used to allow the mortgagee (typically a Bank) to 1. take possession of and then 2. sell mortgaged property without needing to go to court.
There has actually been serious debate about this topic in court cases in South Africa for hundreds of years. Most of the time the banks won those cases.
The court addressed ABSA's reliance on common law principles of parate executie (the right of a mortgagee to take possession and sell mortgaged property without judicial intervention). It found that in 2007 the NCA changed the legal landscape, requiring compliance with its provisions, including judicial oversight.
This SCA ruling reinforces other recent rulings that a clause in a mortgage bond that allows the bondholder to execute without involving the mortgagor or the court by taking possession of the property and selling it is simple no longer valid or legal anymore.
After a default, a mortgagor can however voluntarily work with the bondholder to sell the property. But even then, it is important to obtain the court's approval to perfect the security. If parties agree that the creditor can proceed to realize the bonded property, the creditor does so based on the new agreement after the default, not the original power. It is a fresh agreement.
The National Credit Act Exists and Can’t be Ignored
ABSA argued that the AOD & POA fell within the scope of the parate executie proviso because the provisions were agreed upon after the Serfonteins defaulted.
The court noted that the cases ABSA relied in their arguments were decided before the NCA came into effect in 2007. The NCA has since changed the legal landscape of creditor and consumer relationships. The lawfulness of the provisions must be determined under the NCA once an agreement falls within its ambit (e.g. if it involves credit agreements).
The SCA found that allowing a bank to execute against the property immediately and without a court order defeated the NCA's central purposes and was unlawful. After all, the NCA aims to protect consumers and promote equity in the credit market.
Don’t Forget Rules 46 and 46A
All the courts in South Africa have rules and laws that apply to how things are done.
LEGAL MATTERS
The introduction of Rules 46 and 46A into the Uniform Rules of Court requires judicial supervision in all matters involving execution against a debtor’s immovable property, and only when judgment has been granted by a court.
Don’t Forget The Constitution
Changes to South Africa’s Constitution also matter. To protect all South Africans, procedural constraints are placed on mortgagees' powers to execute against property to protect against arbitrary deprivation of property and eviction, as outlined in the Constitution.
Eviction without a court order is now prohibited, and deprivation of property without court sanction is considered ‘arbitrary’.
We know it’s got nothing to do with pirates but the image of this old practice being executed is just too funny to ignore. Added together these different factors make a significant argument against letting people agree to ignore the NCA and Constitution and go ahead with a sale using parate executie any more.
The introduction of these court rules, the provisions of the Constitution and the introduction of the National Credit Act in 2007 effectively curtails the practice of parate executie
Parate Exectuie Walks the Plank
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LEGAL MATTERS
A Win For All Consumers
The court found the Serfonteins were induced to sign the AOD & POA under threat of litigation. They did not feel they had any other choices.
The SCA upheld the High Court's decision, finding that the unlawful provisions permeated the entire AOD & POA, making it impossible to apply one part of the agreement without taking the other unlawful provisions into account. They were so mixed together it is impossible.
Therefore, they said that declaring the AOD & POA void ab initio (from the beginning) was the only real choice.
Hendrik Uys of VDL Attorneys says: "This judgment is an important reminder that judicial oversight is crucial when any person's immovable property is at risk of being declared executable to settle outstanding debts. The provisions of the National Credit Act provide protection for both consumers and credit providers and simply cannot be ignored."
The ruling gives added clarity to the old parate executie practice and it reminds all banks to ensure the courts are involved in any attempt to sell off a client’s home, even if they have signed forms acknowledging the debt. As Hendrik says above, the NCA cannot just be ignored.
Thanks to VDL Attorneys for their insights on this case. To learn more about VDL Attorneys: www.vdlattorneys.co.za
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DEBT REVIEW
WHAT DOES IT MEAN TO DROP OFF?
When someone who is in debt review stops making the required payments each month for their debt review this is called: drop off. Of course, just because someone stops paying it does not make the record of their having entered or started debt review magically disappear. That listing at the credit bureaus and with the National Credit Regulator will stay in place until the consumer settles all their debts one way or another.
BREAKING NEWS
WHY THE BUDGET SPEECH WAS POSTPONED
In a first for modern SA, the annual government budget speech which was scheduled for February (as normal) was postponed till March 12th.
With the ruling party having lost its majority hold on cabinet and an often called GNU in place, a lot more political ‘wheeler dealing’ has to take place behind the scenes to make sure all parties are happy with how government plans to generate and spend funds.
One of the hot topics, revolves around pushing up VAT to 17%. With strong pushback on this and other plans it was clear that the budget could not be announced in time.
As anyone who has worked on a budget knows, if you are unsure how much you are going to ‘earn’ it is almost impossible to really plan for how much you can ‘spend’. So, without clarity on the VAT topic everything else is hard to work out.
As a result, the budget speech had to be postponed to allow more time for robust debate at cabinet level.
VIRTUAL ABSA DEBT REVIEW WORKSHOP
ABSA have announced that they will hold their first quarterly online workshop with Debt Counsellors on the 31st of March 2025.
The workshop will be held on MS Teams and ABSA will send the agenda and links via email to NCR registered Debt Counsellors in due course. ABSA ask that DCs save the date so long.
DEBT REVIEW AWARDS 2025
The annual Debt Review Awards Gala (where the results are announced) will be held on the 24th of October 2025. The in person gala (by invitation) will be in KZN this year. The event will be live streamed as usual and all are invited to join online (on YouTube).
An industry Meet up and Conference is planned the day before, on Thursday the 23rd (also in KZN) for those travelling in for the Awards and for those operating in the KZN area.
Credit Life Insurance
Financial Gains, Client Savings: Collaborate for Success
What We Do
We specialize in providing Credit Life Insurance, Income Protection, and Funeral Cover services to debt counsellors, empowering them and their clients to have more. By referring their clients to us, we not only offer the highest referral fee in the industry, but also provide annuity streams to support their financial growth.
Why Partner With Us?
•Additional Revenue Streams
•Annuity Income
•Retention of Clients
•We take care of Administration
•Compliance Guaranteed
For Debt Counsellors
•A lucrative recurring monthly revenue stream
•Better chance of clients qualifying for debt review
•Little time and no effort – we do the work for you
•User friendly and efficient system
•Enhanced Service Offering
•No Medicals Required
•Continuous Training Provided
•DC Front-End System Integration
For Debt Counselling Clients
•Pay a lower premium for the same benefits – can save your clients thousands of Rands
•Convenience – a single policy covers all your clients’ credit agreements
•Claiming process easy and effortless and facilitated by DCCP
•New loans can be included under this policy
FOODBANK HELPS 60 FAMILIES IN JANUARY
With the help of generous sponsors such as VHT and the NCT the FoodBank were able to provide food parcels to 60 debt review families who had hit hard times during January.
These food parcels contained food packs to help these consumers slash their food bills for the month and continue to contribute towards their debt review payments (reduced payments that month). This helped keep these 60 families’ debt review in place and preserved all the progress they have made to date.
NCR Registered Debt Counsellors who have clients in crisis and are busy with 17.3s are able to apply to the FoodBank here: https://tinyurl.com/FoodBank4Hope
Maximize Time, Minimize Hassle,
Secure & Efficient Payments for Debt Review
In today’s fast-paced world, time is money and every moment spent managing debt payments is time taken away from what truly matters. Whether you're a consumer or a debt counsellor, efficiency is key to financial success.
For Debt Counsellors:
• Access detailed reports for streamlined practice management.
• Ensure timely and accurate payment distribution without administrative burdens.
For Consumers:
• Experience the ease of a single, secure repayment, aligned with your debt review plan.
• Eliminate stress with seamless, on-time payments to creditors.
• Stay focused on your journey to financial freedom—without the hassle of manual payments.
At iPDA, we handle your payment distribution with precision and reliability, so you can invest your time where it truly counts. Let’s make every second work for you.
www.allprodc.org facebook.com/groups/allprodc
Finwise is an all-inclusive Software System, designed for debt counsellors for professional and efficient Debt Management.
Finwise is a cloud-based system, and can be used on any mobile device, PC, or tablet with internet connectivity. The exceptional workflow and innovative task manager tools saves the user valuable time, through multiple consumer data reporting and easy management. Several integrations such as Legasys, iDOCS, Drex, facilitate effortless administering, and handling of multiple transactions and tasks within one system.
STEP-BY-STEP DREX GUIDE
DREX simplifies the exchange of data and makes managing the debt review process less admin intensive.
The below links take you to step-by-step guides on how to use the DC Portal on DREX.
How to Register on the DC Portal
Introduction to the DC Portal
Accessing a Consumer's Profile
DEBT COUNSELLORS
NORTHERN CAPE
NORTH WEST
WESTERN CAPE
GAUTENG
LIMPOPO
FREE STATE
KWAZULU-NATAL
EASTERN CAPE
MPUMALANGA
www.debtbusters.co.za
info@debtbusters.co.za
NCRDC533
14th Floor, The Pinnacle
Cnr Strand & Burg St Cape Town
Tel: 086 111 6197
Fax: 021 425 6292
info@creditmatters.co.za
NCRDC1142
Tel: 087 701 9665
Email: help@zerodebt.co.za
www.zerodebt.co.za
South Africa’s Leading Debt Counsellors
NCRDC533
14th Floor, The Pinnacle
Cnr Strand & Burg St Cape Town
Tel: 086 111 6197
Fax: 021 425 6292
info@creditmatters.co.za
www.debtbusters.co.za
www.zerodebt.co.za
www.debtbusters.co.za
info@debtbusters.co.za
Tel: 086 111 6197
Fax: 021 425 6292 info@creditmatters.co.za
www.zerodebt.co.za
www.debtbusters.co.za
info@debtbusters.co.za
www.zerodebt.co.za
www.debtbusters.co.za
info@debtbusters.co.za
South Africa’s Leading Debt Counsellors NCRDC533
14th Floor, The Pinnacle Cnr Strand & Burg St Cape Town Tel: 086 111 6197
Fax: 021 425 6292 info@creditmatters.co.za
068 279 5951 info@debteezy.co.za www.debteezy.co.za
LEGAL
Liddles & Associates
“If you do what you’ve always done, you’ll get what you’ve always gotten.” - Tony Robbins
(T) +27 87 138 3275 (E) quintin@liddlesinc.com
www.liddlesinc.com
Steyn Coetzee Attorneys / Prokureurs
Adri de Bruyn 11 Market Street / Markstraat 11, Paarl, 7646
Tel: 021 872 1968
Fax: 021 872 2678 adri@steyncoetzee.co.za
RM Brown and Associates 16th Floor, The Pinnacle Cnr Strand & Burg St Cape Town
Tel: 021 202 1111, f: 021 425 0875
Email: roger@rmbrown.co.za
Effective Intelligence sardagh@e-intelligence.com
Fides Cloud Technologies craig@fidescloud.co.za
Finch Technologies chris@finchinvestments.co.za
I-Bureau Services abrie@ibureau.services
IDR South Africa shane@v-report.co.za
iFacts sonya@ifacts.co.za
Inoxico support@inoxico.com
Kudough Credit Solutions chrisjvr@kudough.co.za
Lexisnexis Risk Management kim.bastick@lexisnexis.co.za
Lightstone chrisb@lightstone.co.za
Loyal1 tshepiso@loyal1.co.za
Managed Integrity Evaluation
marelizeu@mie.co.za
Maris IT Development marius@marisit.co.za
National Validation Services info@nvs-sa.co.za
Octagon Business Solutions gregb@octogon.co.za
Omnisol Information Technology info@verifyid.co.za
Payprop Capital johette.smuts@payprop.co.za
PBSA seanb@PBSA.CO.ZA
Right Cover Online cto@rightcover.co.za
Searchworks 360 skumandan@searchworks360. co.za
Smart Information Bureau info@smartbureau.net
ThisisMe juan@thisisme.com
TPN Group michelle@tpn.co.za
Trans Africa Credit Bureau
clintonc@transafricacb.co.za
Transaction Capital Credit Health
DavidD1@tcriskservices.co.za
VeriCred Credit Bureau sumein@vccb.co.za
WeconnectU
johann@weconnectu.co.za
Zoia Consulting sipho@dots.africa
C O N T A C T D E T A I L S DEBT REVIEW NIMBLE GROUP
Dear Debt Counsellors,
This letter serves to communicate to the Credit industry to use the following contact details for the Nimble Group when processing Debt Review related applications, enquiries, queries and, complaints escalation process.
Kindly take note Nimble Group hereby consents to service all legal documents applicable to Debt review herein by way of email.
Email & Task Type
Forms 17 1 and 17 7
Forms 17 2, Proposal Summaries, Cascade plans & Court orders
Forms 17.2 Rejection, 17.W & Form 19
Forms 17 3, General queries, settlements, balance, refunds, statements, Paid up letter request & reckless lending allegations, payment allocation queries & Complaints
Contact Details
drcob@nimblegroup co za
drproposal@nimblegroup co za
drtermintation@nimblegroup.co.za
drqueries@nimblegroup co za
DEBT REVIEW INBOUND CONTACT NUMBERS:
+27 87 250 5533
+27 21 8300 711
DEBT REVIEW ENQUIRIES ESCALATION MANAGEMENT ORDER CONTACT DETAILS
Kindly note that escalations must only be done once you have sent your request to the above-mentioned contact email addresses and if your requests are out of SLA in lieu Debt Review forms response business days stipulated in the NCR Act
Kind Regards,
Denvor Rank
Operations Manager: Process Recoveries
1st line escalation
Aletta Tokollo Molelekeng
Debt Review: Team Manager
D: +27 11 285 7247
E: AlettaM@normanbissett co za
2nd line escalation
Denvor Rank
Operations Manager: Process Recoveries
O: +27 21 830 0750 (Ext 6062)
E: denvorr@nimblegroup co za
3rd Line escalation
Zivia Koff
Specialised Process Manager
D: +27 21 492 4554
E: ziviak@nimblegroup co za
We trust this communication finds you well and that it will improve our service to you
It is of utmost importance that debt review documentation is sent to the correct email address to ensure timeous feedback and action.
CAPITEC BANK CONTACT DETAILS
Further to the above, please ensure that only the channel email address applicable to the documents being submitted is used. Sending emails to multiple email addresses will result in a delay or even no feedback or action.
CAPITEC BANK ESCALATION CHANNELS
1 Jolene Pieters Team Leader: Debt Review (Court Orders/Forms/Inclusions) JolenePieters@capitecbank.co.za 2 Cindy Mauritz Manager: Debt Review CindyMauritz@capitecbank.co.za
3 Carolina Visser Manager: Process Recoveries CarolinaVisser@capitecbank.co.za Proposals
1 Meghan Bruiners Team Leader: (Proposals) MeghanBruiners@capitecbank.co.za
2 Cindy Mauritz Manager: Debt Review CindyMauritz@capitecbank.co.za
3 Carolina Visser Manager: Process Recoveries CarolinaVisser@capitecbank.co.za General Enquiries, Refund/cancellation requests , Termination queries, Updated COB’s, Payment queries
1 Nathan Slaverse Team Leader: Enquires Nathanslaverse@capitecbank.co.za 2 Carolina Visser Manager: Process Recoveries CarolinaVisser@capitecbank.co.za
1 Mfundo Xaba Officer: Market Conduct Oversight MfundoXaba@capitecbank.co.za
2 Dries Olivier Manager: Market Conduct and Oversight DriesOlivier@capitecbank.co.za
Reckless Lending Queries
1 Whitney Jardine Team Leader: Recoveries Risk Support WhitneyJardine@capitecbank.co.za
2 Zayaan Jurgens Manager: Recoveries Risk Support ZayaanJurgens@capitecbank.co.za
Credit insurance claims
1 Grant Griffith Jessica Rademeyer Kanyisa Mbiza Team Leader: Insurance Claims GrantGriffiths@capitecbank.co.za JessicaRademeyer@capitecbank.co.za KanyisaMbiza@capitecbank.co.za
2 Brigitte October Performance ManagerInsurance Claims BrigitteOctober@capitecbank.co.za
Telephonic queries lodged
1 Laetitia Pretorius Team Leader: CCS Queries LaetitiaPretorius@capitecbank.co.za
2 Tracey Govender Manager: Recoveries Administration TraceyGovender@capitecbank.co.za
Sincerely,
17.1, 17.2, Proposals, General correspondence: debtcounselling@africanbank.co.za
To register for Legal Web Access: lwac@africanbank.co.za
Reckless Lending investigations: RLA@africanbank.co.za
DETAILS COMING SOON For more
ESCALATION PROCESS
erminations@absa.co.za
ebtreviewqueries@absa.co.za
DC QUERY PROCESS
NEDBANK DRRS
Debt Counselling Query Resolution Contact Points and Escalation Process
Email submissions (Level1)
Email: DebtCounsellingQueries@nedbank.co.za
To be used as a first point of contact for all written communication
Call centre (Level 1: Alternative) Tel: 0860 109 279
To be used as a first point of contact for all telephonic communication
Attended to by Queries Specialist (Level 2: First Escalation) dcescalation1@nedbank.co.za
To be used only where no resolution is found from first point of contact after 5 business days
Attended to by Team Leader and Queries Specialist (Level 3: Second Escalation) dcescalation2@nedbank.co.za
To be used only where no resolution is found from the first escalation after 5 Business days
Attended to by Support and Escalation Manager (Level 4: Final escalation) nbdcescalations@nedbank.co.za
To be used only where no resolution is found from the second escalation after 5 Business days
proposals@consumerfriend.co.za