Debtfree Magazine #8 of 2021 by Debtfree Magazine

SCAMDEMIC NO VACCINE IN SIGHT

Issue 8 of 2021

EXCELLENCE IS DOING ORDINARY THINGS EXTRAORDINARILY WELL – John W. Gardner

WHAT MAKES US EXCELLENT? / Unimpaired and automated PDA systems / Integration with top-ranked Debt Counsellor systems / Enhancing Debt Counsellor efficiency and sustainability / Best customer support in the country – queries are resolved within 24 hours / Strong compliance and best-industry-practice implementation is at our centre

Call Chris van der Straaten Head of Hyphen PDA | 082 557 0437 Or call our friendly support centre on 011 303 0060 - Option 2 or visit our website www.hyphenpda.co.za

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

Why not insure all your outstanding accounts in a single ONE Credit Protection Policy? • Temporary Disability – we pay your installment for 12 months • Permanent Disability – we settle the account

BENEFITS •OFFERED: Critical Illness – we pay your installments for 3 months

• Death •–Retrenchment we settle the–account we pay your installments for 12 months • Temporary Disability – we pay your installment for 12 months

At a rate ofDisability R2.95 per R1000 unsecured/short-term • Permanent – we settle the account 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

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 Overdrafts 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 0861 266 562 admin.debt@one.za.com • Rental Agreement

• Maintenance Orders

Terms and Conditions Apply

For further information please speak to your Broker, Debt Counsellor or alternatively contact your regional ONE office. ONE Insurance Underwriting Managers (Pty) Ltd Reg No. 1996/008987/07. Authorised Financial Services Provider FSP8783 VAT No. 4370160501

0861 266 562

Products underwritten by Old Mutual Alternative Risk Transfer Limited, a licensed Life Insurer.

FROM THE EDITOR It has been rather impressive to see the worlds finest athletes run around empty stadiums and compete for Olympic gold. There were some memorable moments, as always, and it has given us an enjoyable distraction in the midst of a very hard and scary year. Here’s to the underdogs who surprised us all, here is to the Haka dancing, the perfectly synchronized swimming, the meme recreating Gold medal biting, the 14 year old perfect diving, the home runs hit into the empty stadiums, the javelins launched across the world, here’s to the new world records set on track and in the pool. The biggest winners were probably those who got to watch from the safety of their homes around the globe, while the biggest losers must surely have been the host country. As South Africa knows, hosting an international event of this size costs millions and millions in building and preparation. To then lose out of any possible revenue from visiting spectators, must have hurt. It just demonstrates how vulnerable we all are (even countries) to the effects of the pandemic. Other than a very expensive distraction, the Olympics is also a competition between the ‘best of the best’. It is a chance for those who excel to assess themselves against their peers. It is the culmination of years of personal preparation and training, of selfdenial and discipline, this takes razor sharp focus.

This is similar to the annual Debt Review Awards process. It is a chance for not only the entire industry to shine (and take a moment to pat one another on the back) but also for individuals, companies and practices to find out how they stack up against their peers. Be sure to catch our preview article, as everyone gets ready for the online Awards show on 10th of September. This month we consider how the pandemic has not slowed down unscrupulous people who are out to take advantage of others. Like true parasites of society, these scammers continue to try leech off of hard working people, regardless of the consequences. We hope the articles in this issue help you become more aware of these types of scams and more wary of other possible scams. You may not have the muscle bound body of an Olympian in peak physical condition, but if you are in debt review, then you too have been working on achieving a truly amazing long-term goal - the goal of getting out of debt. Much like a training athlete, success in debt review comes from staying focused, being willing to cast off distractions, learning to shop better, to save harder, to make the budget cuts others cannot, or simply are not prepared to make. If you can do this, then soon you will lift aloft your gold medal in the form of a clearance certificate, showing that you are winning at life and have become debt free!

FREE BOOKLET

FOR DEBT COUNSELLORS TO SHARE Are you being phoned by consumers who are asking how they can leave debt review? Is your inbox full of requests to remove a Debt Review Flag at credit bureaus? The free booklet, which you can download from the link below ( 1MB in size) covers many common questions and helps consumers learn more about the challenges involved with having their debt review status removed before paying off all their debt.

DOWNLOAD AND SHARE

Save Time Send Detailed Information Educate your Clients & Consumers

DEBT REVIEW LESSON #1

If you begin to earn significantly more than when you started debt review, be sure to talk to your Debt Counsellor about how you can pay off your debts faster. You can finish debt review faster and end up saving thousands on fees and interest by paying even a bit more each month.

PROFESSIONAL DEBT COUNSELLING ATTORNEYS Assisting With Debt Review Matters Nationwide WESSEL SYMINGTON TEL: 021 872 1968 w e s s e l @ s t e y n c o e t z e e . c o . z a w w w. s t e y n c o e t z e e . c o . z a

South Africa’s Leading Debt Solutions Provider

Wessel Symington Steyn Coetzee Attorneys ‘‘The reason Zero Debt are industry leaders is that they get 80% acceptances on their initial proposals to credit providers, right away. They also make excellent use of the DCRS proposal system in negotiations with credit providers. Zero Debt regularly succeeds in convincing credit providers to reduce their high interest rates down to less than 5% on their client’s debts. This means that Zero Debt clients obtain their court orders and can pay off their debts quickly. They ensure dedicated clients get their clearance certificates and are soon able to start their debt free life. Zero Debt’s team are very experienced and highly professional. They work hard to ensure clients are totally debt free at the end of the debt review process.’’ 087 701 9665 help@zerodebt.co.za www.zerodebt.co.za

CONTENTS SCAMDEMICS: NO VACCINE IN SIGHT

2021 DEBT REVIEW AWARDS

POPI BASICS FOR DEBT COUNSELLORS

DEBT VADER: WHY CONSUMERS ARE STILL NOT GETTING COURT ORDERS

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.

CONSUMER FRIEND USES SOFTWARE TO ENSURE

POPIA COMPLIANCE! - Secure system-to-system data transfer (no human contact) - Elimination of data exposure from the use of email - Data specification is fit for purpose

POPIA COMPLIANCE IS CRUCIAL THIS YEAR!

BREAKING NEWS

INDUPLUM CASE TO PROCEED AT SCA Back in 2019, the Western Cape High Court issued a landmark judgment regarding the double up or ‘in Duplum’ law as set out in the National Credit Act and other laws. The ruling went in the way of consumers and offered greater clarity on what fees can and can’t be charged and how these form part of the overall debt calculations of NCA Section 103(5) in Duplum. Credit providers who really enjoy charging consumers lots of extra collections fees appealed the ruling. The case will soon be heard at the Supreme Court of Appeal (on the 7th of September 2021). The Stellenbosch University Law Clinic will be appearing to once again argue the matter on behalf of consumers.

We are the champion in your corner!

DebtBusters provides a remedy for financially stressed consumers through effective debt relief solutions. Over 1 million South Africans who are facing tight budgets and are struggling with debt, have come to DebtBusters looking for a financial solution.

086 999 0606 info@debtbusters.co.za www.debtbusters.co.za

NCR CAMPAIGN ABOUT DEBT COUNSELLING Every year the NCR sets aside some time and money to promote the debt counselling process. At the moment, the NCR is busy promoting the message of how Debt Counselling offers a new lease on life for over indebted consumers. Though their press releases don’t actually discuss the extensive benefits of the process, the campaign does feature some extensive warnings pointing out such things as how debt review is not a savings mechanism, and to encouraging consumers to avoid people who advertise saying you can get up to 60% off you usual payments. They also warn that debt counselling is not for everyone and some people who apply can be rejected from the process. They also stress that the process is not free and there are many fees (which they try explain). They go into the maximum fees in detail and stress the importance of only dealing with a counsellor with a certificate. Hopefully consumers will be won over to this new lease on life by all the warnings and helpful reminders not to deal with unregistered persons.

DEBT REVIEW AWARDS 10 SEPTEMBER 2021 The annual Debt Review Awards will be live streamed on YouTube on September the 10th 2021. All are welcome to watch and you can find the links to watch live at www.debtreviewawards.co.za on the day. The YouTube Chanel can be found here: https://bit.ly/3kiIjuQ

NCR’S CREDIT INDUSTRY FORUM DISCUSSING CHANGES TO DEBT COUNSELLING FEE GUIDELINE The NCR from time to time release fee guidelines that it feels the industry should follow. These fee guidelines are often matched by debt review proposal software (which helps Debt Counsellors quickly make proposals to credit providers). At present the NCR are asking members of the Credit Industry Forum to consider a fee structure which asks attorneys to wait to get paid or to perhaps not get paid if clients drop out of the process. They have also proposed a fee structure that would see Debt Counsellors wait on courts and consumers for a long time to pay a quarter of their fees. Many Debt Counsellors and Attorneys are worried that such a fee structure will prevent them from being able to operate successfully and could wipe out the industry. For more information visit: www.debtfreedigi.co.za for a detailed examination over the next few weeks.

POPI-PROOF your PROCESSES WITH DREX Secure system-to-system data transfer (no human contact) Elimination of data exposure from the use of email Data specification is fit for purpose

DID YOU KNOW? ^^

The President of South Africa has proclaimed the POPIA commencement date to be 1 July 2021. POPIA applies to any company or organization processing personal information in South Africa. Fines for non-compliance with POPIA can range up to 10 million ZAR (South African rands). POPIA defines personal information broadly as any information relating to not only a living person, but also a company or legal entity.

^ ^

DRAWING MONEY FROM PENSIONS TO PAY DEBTS? There is a lot of discussion, on a government level, about making changes to current legislation which would allow consumers (under certain circumstances and to a limited amount) to draw part of their pensions early. As soon as mid 2022, changes to laws around pensions may allow some troubled consumers’ access to some of their pension funds. While this would have a massive knock on effect on the future value of peoples’ pensions, cash strapped consumers are desperate to get at these funds now and are happy to worry about retirement later. Government is also looking to lock pension investments into local infrastructure building in an effort to fund government projects.

NEW FINANCE MINISTER President Ramaphosa recently made some significant changes to his Cabinet. In the midst of all the changes, Finance Minister Tito Mboweni handed in his resignation. The President then invited the head of the ANC’s NEC economic transformation sub-committee, Mr Enoch Godongwana to take on the role as Finance Minister. He accepted. Mr Godongwana has served as a director at Mondi, and Platinum Group Metals as well as chairperson of the Development Bank of Southern Africa. He comes from a trade union background and at one time served as the general secretary of Numsa. He spent time as Provincial Minister of Finance in the Eastern Cape before becoming the Deputy Minister of Economic Development. In the past, Mr Godongwana has been outspoken about overspending by Government and made statements about the need for SA to have better social infrastructure to meet people’s basic needs.

BANK ZERO FINALLY GOES LIVE After delaying for nearly 3 years Bank Zero has finally opened their doors. Bank Zero says they delayed their launch for so long to ensure that their digital offerings aimed at businesses were just right. The latest, digital only, bank has said that, unlike some of their competition, they intend to focus primarily on business banking clients. That said, Bank Zero will also have smaller accounts for those just looking to save (as it would be foolish to turn these clients away). Bank Zero says they will not be offering clients overdrafts and loans at this point.

South Africa’s

leading Debt Counsellors since 2007

Start getting out of debt today! www.creditmatters.co.za

Just got out our national of Call debt! call centre on

086 111 6197

Call our national call centre on

086 111 6197

www.creditmatters.co.za

YOU SHOULD BE

SAVING

SCAMDEMIC BUT YOU ARE

NOT

NO VACCINE IN SIGHT

SCAMDEMIC: NO VACCINE IN SIGHT

DEAR FRIEND... How many times can you win the UK lottery without even entering? How many distant relatives (who you’ve never heard of) have left you the sole beneficiary of their massive estate? How many former finance minister’s sons or daughters have contacted you, asking for help to move money or gold out of their country? Sometimes your phone goes ahead and wins a competition without you. Well done smart phone! Heck, sometimes Elon Musk is giving away crypto currency and wants your help to hide the profits from the IRS. You never realized he even knew who you were, amazing!

Our email and sms in-boxes are relentlessly full of horrible scams from unscrupulous crooks who simply want to con you out of your hard earned money. Covid-19 has not slowed these scammers down, they are as active now as ever, perhaps even more so. There are even specific scams that target people who are in debt review, and can be very convincing. What are some common scams to watch out for, and how can you protect yourself from being taken to the cleaners?

SCAMDEMIC: NO VACCINE IN SIGHT

419– THE ORIGINAL INTERNET SCAM The “419 Scam” or “Nigerian Prince” scam, is one of the oldest tricks in the book. You may think this scam is fairly new, but in its infancy it was carried out via faxes and then letters. The invention of email has really helped these scam artists extend their reach globally. How it works: A mysterious person claims to have a way for you to get lots of money, all you need to do is pay a small fee upfront to get access to those funds. For example, a foreign prince wants to send you gold bars via the postal service, or through their “lawyers” but a small release fee is needed to facilitate some government paperwork. They ask if you can please pay this fee (or part of it) into an account they give you and then the deal can go ahead.

After the target pays the fee, the conman either immediately ghosts them, or create excuses for delays and try to get you to pay a little more before disappearing. The FBI often refer to these scams by the number ‘419’ since it is the section of the Nigerian Criminal Code that deals with fraud.

James Vietch the comedian has become famous over the years for answering these types of messages and messing around with the conman on the other side of the scam. He leads them on for days or weeks, even months with ridiculous comments, requests or even promises wasting their time so they cannot go after vulnerable people. Have a laugh at their expense here: www.ted.com/talks/james_veitch_this_is_what_happens_when_you_reply_to_spam_email?language=en

SCAMDEMIC: NO VACCINE IN SIGHT

I WILL DO AN EFT Selling things via Gumtree, OLX or other public platforms is super convenient and can help you raise some much needed cash when your ends don’t meet. A common scam is to contact you from “far away”, and ask you to send the sale item to them via the post. The person sends proof of payment and then waits for you to send the item. More brazen crooks might even show up in person after convincing you that they have made the bank payment. How it works: The person makes a payment that reflects on your online banking (you may even call the bank and check) and then later reverse the payment, or they made the payment in such a way that it bounces back to them. They then end up with the item and you end up with nothing.

SCAMDEMIC: NO VACCINE IN SIGHT

BANKING SCAMS You may often receive emails that look like they are from your bank asking you to sign in using your log in and password to confirm some information. When you type in those details, criminals use that information to try get access to your accounts. The banks have worked really hard to prevent these scams, and these days banking apps ask you to confirm things with your finger print or via one time passwords. Even so, with access to only basic information about you, scammers can try to get access to your accounts. OTP Scams Since the banks have made it harder for scammers to gain access to your accounts without one time pins, scammers have had to change their tactics. They now try to convince you to give them your OTP while they try make withdrawals. How it Works: You receive a call from a “bank employee” (scammer) who tells you they are from the bank and maybe even asks if you are the account holder and mentions some details like your address or the account number.

Impressed that they have some of this info you begin to trust them. They may even ask you some security questions to harvest more information from you. Wow, these people are serious about your safety (or so it seems). They then tell you that someone is performing suspicious transactions on your account. Oh no, what must I do? They tell you that they are going to send you some One Time Pins or passcodes to stop the transactions. Then your phone starts to get OTPs they are busy making transfers or purchases on your account. They ask you to tell them the code you just received, so that they can stop the payments being made. In the mean time they are actually using those OTPs to complete the transaction themselves, with your help! A big part of this scam is to pressure you, and make you feel the urgency of stopping such payments. They do not give you time to think or time to hang up and call the bank directly (which is what you should actually do).

SCAMDEMIC: NO VACCINE IN SIGHT

DEBT REVIEW SCAMS Some scams target people who are in debt review. The scammers know a little about the process, and may even have access to some information about your debt review, such as who your Debt Counsellor is, or how much you pay towards your debt each month. What are some of the most common scams?

SCAMDEMIC: NO VACCINE IN SIGHT

DEBT REVIEW SCAMS

NEW ACCOUNT DETAILS This is actually a fairly common scam in many industries and involves someone telling you that the PDA banking details have changed, and asking you to make a payment into the new account. How it Works: Someone from your “Debt Counsellors office” (the scammer) calls and says that they have good news for you, your payment amount has been reduced. What good news!!! This is the bait to draw you in. Who wouldn’t want to pay less? Then they tell you that all you now need to do is pay the reduced amount into a different account number (for one reason or another). It is important to note that the PDAs have not changed their bank details for years and years, and this is unlikely to happen. If someone tells you this, they are trying to scam you. What you should immediately do, is pick up the phone and call your Debt Counsellor directly (the person you actually know by voice and perhaps face to face) and ask if any such change has actually happened.

Call their Bluff: Since debt review is very paperwork heavy they should be able to send you the restructured payment plan with the reduced payment amount, and perhaps even the documents from the credit providers who are now happy to get paid less each month (these don’t exist obviously). Debt Counsellors also get targeted by these types of scams. For example, some scammers contacted many Debt Counsellors and told them the National Credit Regulator (NCR) had changed bank details, and they should pay their annual renewal fees into the new account. It was, of course, the scammers own account and not that of the NCR. Same scam but a slightly different target group.

SCAMDEMIC: NO VACCINE IN SIGHT

DEBT REVIEW SCAMS

YOU CAN GET A NEW LOAN A common scam is to target people in debt review who are not actually serious about getting out of debt. The scammer gets in touch and promises the consumer that they can get access to a new loan even though they are in debt review. They appeal to the desperation or greed of the person in debt review, very similar to the classic 419 scam. How it Works: Once again, the idea is that the scammer promises you could get access to a loan, but only if you pay a small upfront fee. They say that their business is not worried about things like “black listing” (a nonsense expression) or “debt review”. They promise not to do any credit bureau checks before giving out the credit (even though the law requires it).

SCAMDEMIC: NO VACCINE IN SIGHT

DEBT REVIEW SCAMS

YOU CAN GET OUT OF DEBT REVIEW A growing scam is to tell people they can magically leave debt review before they have paid off all their debt. This is not legally possible.* Being in debt review is saving you thousands in fees and interest, but some people find it hard to stick to the tight budgets and to never miss payments. They long for the days when they used to owe people lots and being chased by collections agents 24/7 (we don’t know why). They miss having access to money they had not earned, and sometimes find themselves in need of more money to pay for something urgent. Instead of turning to their Debt Counsellor for advice, they begin to search the internet for a new loan and fall into the hands of scammers.

How it Works: You go online and Google “how to leave debt review” (for one reason or another) instead of talking to your Debt Counsellor about it. You find a Facebook page or website with promises of getting you out of debt review. It seems easy and they promise quick results. They ask for a fee upfront to get you out of debt review. They advise you not to pay your debt review this month and rather pay them their fees. Much like a classic 419 scam they then either try do a little bit of work and get you to pay them again or they simply disappear.

*Except if the only debt left is your bond. In such a case, the Debt Counsellor is the best person to help you leave debt review safely so that you do not lose your home. If a consumer has never received a court order saying they are over indebted then a court may also decide that the consumer now has enough money each month that they don’t need debt review. In such a case, once again, your Debt Counsellor is the best person to help you sort this out via the courts but it takes some time.

SCAMDEMIC: NO VACCINE IN SIGHT

WHY ARE SOME SCAMS SO TOTALLY RIDICULOUS AND OBVIOUSLY A SCAM? Sometimes scams seem so obvious. Why do scammers send poorly written emails with promises of ridiculous large amounts of money? They do this because they are targeting people who do not see the danger, those who overlook the obvious warning signs and still go ahead. These gullible people are their targets, not the ones who see the danger. So they continue to use this shotgun approach, sending out thousands of emails or sms, and see who takes the bait.

SCAMDEMIC: NO VACCINE IN SIGHT

PROTECT YOURSELF FROM SCAMS Rather than following links to dodgy websites you find in suspicious emails, go directly to your banks website. Type the link into the address bar on your computer or phone. If the offer is real, you will find what you need on your banks legitimate site. If someone calls you and says they are calling on behalf of the banks fraud department, thank them for their call, hang up and call the bank yourself. Never give anyone an OTP, the banks all assure us that their staff will never ever ask you for these details (or your account passwords). If you are in debt review, then the number one way to avoid scams is to regularly communicate directly with your Debt Counsellor. If approached by strangers with offers that seem too good to be true, reach out directly to your DC and discuss the offer with them. Don’t be desperate to take on more debt or be in a hurry to get out of the process for no good reason. After all, you want less debt and not more. If you are struggling to make ends meet each month, or are faced with an emergency, then contact your Debt Counsellor for the best advice. Also, please remember the Payment Distribution Agencies do not change their bank details.

Woman photo created by wayhomestudio - www.freepik.com

SCAMDEMIC: NO VACCINE IN SIGHT

AVOID THE SCAMDEMIC Sadly even now, scammers are out there and they want to rip you off. They will promise you the world, as long as you pay upfront. Never let anyone trick you in to paying upfront for a service you have not yet received. While there is no 100% way to be safe, you can avoid the most common scams out there with a little bit of caution and a dash of common sense.

CollectNet

collect / review / disburse

Welcome to our world of

efciency and

automation

Why choose us? New generation technology Fully automated and integrated Dedicated support for DC business growth Knowledgeable staff with extended support hours CollectNet

collect / review / disburse

Tel: +27 12 140 0602 | Email: info@collectnetpda.co.za | Web: www.collectnetpda.co.za

DEBT REVIEW

AWARDS

2021

IS COMING

THE DEBT REVIEW AWARDS IS COMING

IT’S A HARDKNOCK LIFE... Since the Zoom-demic began, time has become hard to keep track of. One minute it’s April 2020 and the next it is almost 2022. But before this year ends, we must spend a few moments celebrating debt review, the hard working companies, practices and individuals who work in the industry. The annual Debt Review Awards will be online again this year, and we invite everybody to tune in and enjoy the show with us. Friday, 10 September is just a few weeks away, so let’s take a look at what the awards are, why they matter and how you can watch this year.

THE DEBT REVIEW AWARDS IS COMING

WHAT ARE THE DEBT REVIEW AWARDS? The Debt Review Awards originated in 2014, when Debtfree Magazine Editor, Zak King brought the industry together in various committees to identify which credit providers, Debt Counsellors and Payment Distribution Agencies were performing well. A small red carpet gala was held, and leaders in the industry were invited to attend. It was a celebration of all the good that debt review does for consumers and the economy. On that occasion, the very first Golden Piggy Bank awards were handed out, and so the Annual Debt Review Awards were initiated. The processes are being refined each year, and the award recipients are now based on the results of online peer reviews. Different NCR registrants are able to complete each year. The results of the combined reviews are revealed on the day of the Debt Review Awards Gala. In 2020, the Gala shifted to an online show (due to the pandemic), and will be live streamed again this year.

YOU HAVE TO SEE IT FOR YOURSELF...

THE DEBT REVIEW AWARDS IS COMING

WHY DO WE NEED THE AWARDS? While it is great for credit providers and Debt Counsellors to receive the highest ratings in the peer reviews, and to receive a Golden Piggy Bank, the Awards are more than a popularity contest. There is a tendency, in any industry, to focus on the ongoing problems. This is because those problems often slow down the process, and cause extra work and headaches. So, when there is an industry meeting, it is often with the goal of identifying and deliberating these problems to overcome them. This is a great idea, but it very quickly turns into a big gripe session, with a negative tone. So, when do you celebrate all the good being accomplished in the industry? Sadly, this is done rarely, if ever. Due to the many challenges with a complex and developing industry, like debt counselling, there are plenty of occasions to moan and attempt to rectify issues. In fact, it is a vital focus of many conferences, forums and other meetings.

This is why the Annual Debt Review Awards are so important for the debt review industry! It provides all who work in the industry, a chance to reflect on all the good that has been accomplished. This is not to be minimized, Debt review saves lives and has helped cushion the local impact of the global financial crises. It also gives those who work in the industry a chance to pause, and focus on what is making some of their colleagues businesses work smoother, more efficiently. It poses the important question:

What does it mean to be a good debt counsellor, a good credit provider, a good payment distribution agent?

THE DEBT REVIEW AWARDS IS COMING

THE PEER REVIEW PROCESS You may wonder how does the peer review process work? Here is a quick chart explaining how the process takes place during the year leading up to the Awards Show.

THE DEBT REVIEW AWARDS IS COMING

WHAT TO EXPECT DURING THE AWARDS SHOW Based off the experiences of the live streamed Awards show of 2020, the organizers are running a preshow around midday and the Awards Show itself from 2pm on Friday the 10th of September. The idea behind holding the event during the afternoon, rather than on a Saturday evening (as was the case with the red carpet gala in the past) is to give as many people who work within the industry the chance to enjoy the show. Most of the larger Debt Counselling practices and credit provider debt review offices will close their phone lines a bit early that day, and invite their entire team to enjoy the show. For those who work remotely, this may be done over a shared Zoom or Teams session or perhaps just on their own device at home while Whatsapping with others are the office.

For those who are working in offices across the country, managers are arranging socially distanced group viewings on big screens or computers at work (there may even be snacks). The Preshow will feature group chats by some within the industry, where we can be a fly on the wall and see what they discuss. There will also be interviews with previous winners, presentations and some recaps regarding the process and candidates who are in line to take the top spots this year. The Preshow also gives the streaming team time to sort out any possible glitches and hiccups that might otherwise ruin the fun. The Main Awards Show will begin at 2pm. There will be speeches by familiar faces (including the National Credit Regulator and National Debt Counsellors Association). There will also be some entertainment (with a chance for you to sharpen up some of your skills). We will also find out who the 2 winners of the Significant Contribution to Debt Review awards will be, as well as the new Technology Adoption Award. After the speeches and a presentation about the debt review process, (including consumers getting out of debt) the results of the Peer reviews will be announced. The show should wrap up around 4pm so that those who commute will be able to do so around their normal transport times.

THE DEBT REVIEW AWARDS IS COMING

HOW TO WATCH THE AWARDS All you need to be part of the action this year, is a device and access online. The Debt Review Awards show will be live streamed via YouTube. Step One: For up-to-date info visit www.debtreviewawards.co.za. Besides having information about the process, previous winners and the criteria used the site will feature links you can click to watch the show live. Step Two: You can also subscribe to the Debt Review Awards YouTube Channel HERE. Step Three: Check your email. Closer to the time the organizers will be sending out emails with reminders to those who have been participating in the peer reviews and those who have signed up to the mailing list. Step Four: Follow Debt Review Awards (and Debtfree Magazine) on social media to get access to all the reminders, links and even up to date results as the show streams out live. Check out our other social media channels:

youtube

facebook

instagram

twitter

A BIG THANK YOU Each year the sponsors help to cover the costs of running the peer reviews, maintaining the website, auditing and preparing

TO OUR SPONSORS the results and organizing the Awards gala/show. This year we want to particularly thank the following Supporters and Sponsors.

DEBT REVIEW LESSON #2

Talk to your Debt Counsellor about what would happen if you suddenly lost some of your income. They may be able to help you investigate insurance specifically for people in debt review which can help in that situation. In debt review you need to learn to plan for the unexpected.

We pay when your clients can't The importance of oﬀering your clients protection from falling behind with their Debt Review repayments during unforeseen circumstances is now more evident than ever before.

More cover and more security for your clients & you, the Debt Counsellor. Contact us for a presentation on how a partnership with to Click CreditGuard protects your st a e u q Clients & gives you, Re tion a t n the Debt Counsellor, e Pres peace of mind.

CreditGuard oﬀers an innovative Credit Life Insurance Policy.

Reﬁ ne you oﬀ r va er in lue g y -p ou r r

Unemployment or Inability to Earn an Income Other Than as a Result of Disability Beneﬁt *

re security Mo

. s MORE by client w on iti vie os t Re

op b De er ov

Mo re

Specifically designed for the South African Debt Review market, our tailor-made benefits are available at an affordable cost to your clients:

Maternity Benefit * Death Benefit * Accidental Death Benefit * Permanent Disability Benefit * Temporary Disability Benefit * Critical Illness Benefit * Identity Theft Benefit**

The CreditGuard Credit Life Insurance Policy is underwritten by Guardrisk Life Ltd (FSP 76) and administrated by Siyavika Risk Solutions (FSP 44999). CreditGuard is brought to you by Emisha Software (PTY) Ltd | 2016/281371/07

All beneﬁts are subject to Exclusions and Waiting Periods * Guardrisk Life Product | **Non-Guardrisk Life Product

Contact Details: www.creditguard.co.za Email: Tel:

info@creditguard.co.za 083 252 8410

POPI ACT PROTECTION OF PERSONAL INFORMATION

P er s o n a l i n f o r ma ti on is d at a tha t ca n b e us ed to id en ti fy a s p eci fi c pe rson

IDENTIFYING DETAILS

CONTACT DETAILS

FINANCIAL

DEMOGRAPHICS

SOCIAL

BACKGROUND INFORMATION

MEDICAL AND HEALTH

Do not leave documents or screens that contain personal information open for anyone to see. Shred or properly destroy/de-identify documents that are no longer required for work purposes. Regularly update your passwords to systems and applications that contain personal information. Avoid sending sensitive information over email and communication devices. Do not store sensitive information on desktops or flash drives that can be easily intercepted.

POPI BASICS FOR DEBT COUNSELLORS

INTRODUCTION Debt review is an information rich process with personal information at its core. Introduce the Protection of Personal Information Act, 2013 (‘POPIA’) to the mix and suddenly the information obligations upon Debt Counsellors become that much heavier.

Your Client is now the “Data Subject” There is a lot to consider from a processing perspective when undertaking a debt review process for a consumer, who is now known as the ‘data subject’ in the PoPI Act. Personal information is processed from the start of a debt review and continues for an extended period of time until the consumer is finally cleared by the Debt Counsellor. Even after the review ends, data has to be stored for some time. What are some things you need to know about the PoPI Act if you are a Debt Counsellor?

POPI BASICS FOR DEBT COUNSELLORS

THE PURPOSE FOR PROCESSING PERSONAL DATA Firstly, defining the purpose for processing of consumer personal data is captured in the National Credit Act, 2005 (‘NCA’). Simply put ,the information of the consumer is collected and processed in order for the debt counsellor to fulfill its statutory obligation under the NCA; both a contractual and legal purpose. The NCA sets forth the information required in order to support a debt review application from simple identity information to the complexities of credit account numbers, balances and other financial information. This info needs to be added into your PoPI Manual.

POPI BASICS FOR DEBT COUNSELLORS

THIRD PARTY SERVICE PROVIDERS Secondly, debt counsellors make use of third-party service providers in order to either interact with credit providers, credit bureaus or other role players in the debt review process. Service providers are used to process debt reviews on systems and via PDAs to distribute payments to credit providers. An important compliance step would be understanding these role players and defining which relationships amount to ‘operator’ relationships and formulating agreements to manage your compliance together with your operators. You may need to update some agreements with 3rd Party Suppliers and reflect the use of 3rd Parties in your paperwork with clients.

POPI BASICS FOR DEBT COUNSELLORS

DATA SECURITY Lastly, but definitely not least, data security is an important aspect of POPIA and a vital compliance step in your compliance program. Debt counsellors need to understand their IT infrastructure and the security parameters around that infrastructure. As you become more familiar with your IT operations, you put yourself in a position to understand the internal and external risks to your data security, enabling you to update your security where necessary. This may involve a little spending, to ensure your compliance.

Debtfree Magazine would like to thank SupraLex for their help in compiling this article. If you would like to learn more about PoPIA Compliance or find resources head over to: https://www.linkedin.com/in/supra-lex-70456316a/

We appear in the following courts and act as a correspondent for Dc’s and their attorneys. ATLANTIS BELLVILLE GOODWOOD CALEDON CAPE TOWN WYNBERG CERES GRABOUW

HOPEFILED KHAYELITSHA KUILSRIVER MALEMSBURY MITCHELLS PLAIN MOORREESBURG PAARL PIKETBERG

ROBERTSON SIMON’S TOWN SOMERSET WEST STELLENBOSCH STRAND TULBAGH WELLINGTON WORCESTER

Please contact adri@kempdebruyn.co.za to enquire about our fees.   

+27 (21) 200 5644 adri@kempdubruyn.co.za 21 Station Street, Paarl, 7646

DEBT REVIEW LESSON #3

You should discuss your monthly budget with your Debt Counsellor from time to time. Your budget needs to adjust and you need to adjust your monthly spending to ensure that you never miss a court ordered debt review payment.

What if... YOUR CLIENT’S VEHICLE IS STOLEN OR WRITTEN OFF? • Is he properly insured? • Could the insurer repudiate the claim due to his debt review status? • Since he cannot get more credit, how does he replace his vehicle?

Meliorleaf is the first and only specialist in insuring the assets of people in debt review. We genuinely protect your clients… in partnership with you.

CALL US NOW 010 141 2799 | www.meliorleaf.co.za

MAXIMISING INSURANCE RELATED INCOME

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.

Are you interested in partnering with Meliorleaf? Call Sean or Elmarie today on 010 141 2799 CALL US NOW 010 141 2799 | www.meliorleaf.co.za

All our members are winners. To all in the industry we wish you the best for the annual Debt Review Awards 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?

We wish members for the De Awa

h all our s the best ebt Review ards.

Members are reminded to make use of the DCASA Members Facebook page to post questions and get support from other members. www.facebook.com/groups/811400322810095

www.dcasa.co.za

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

DEBT VADER

WHY CONSUMERS ARE STILL NOT GETTING COURT ORDERS When they wrote the National Credit Act (“the NCA”) the lawmakers envisioned a debt review system that would ensure over indebted consumers could obtain assistance in rearranging their debt obligations (in a harmonised manner) that would lead to the eventual satisfaction of all their debt obligations. It was meant to be simple, and they thought everyone would just follow the regulations set out by the NCA and consumers would get their court order in a reasonable time. Instead, what we saw from the outset, and are still seeing, is the opposite. Thousands of consumers who have applied for debt review still do not have a court order and feel that the debt review process has failed them. The harsh reality is that this is true for more than 50% of consumers who have ever applied for debt review. Having identified that there is obviously a problem; we should try to identify the causes and then try to rectify them as best we can. Looking at the challenges in the current debt review process, there is not just one guilty party causing all the problems that can be blamed for everything. No, across the industry many different role players have to share at least some of the blame.

DEBT VADER Here are just a few of the problems that we commonly see:

Debt Counsellors: Debt review, like most businesses, is driven by profit. Debt Counsellors would not bother to work in the industry if it was not possible to sustain a living from doing this work. With the current fee structure, signing up a consumer is more profitable than keeping a consumer, this means that when a consumer first gets introduced to debt review, he is often promised the moon and the stars. As soon as the consumer pays the Debt Counsellors’ fees, the incentive for the DC to continue providing excellent service, disappears. So, what happens? Disappointed consumers, who are entitled to the very best, especially when it come to their livelihood, often try to cancel the debt review process because of bad service.

Credit Providers: The Act envisioned a debt review system where credit providers would act in good faith and eagerly participate in the debt review process. Credit providers however often fail to respond to Debt Counsellors’ requests for even a simple certificate of balance, and many simply fail to respond to restructuring proposals. Failure on the part of credit providers with these basic things, hinders the debt review process, which then leads to termination of accounts (by these same credit providers or others) and often results in consumers not being able to place certain accounts under debt review, which in most cases was the reason they applied in the first place.

Credit providers also commonly fail to cancel debt order requests, and allow their collections arms to continue harassing consumers even after they have applied for debt review. These actions on the part of credit providers lead the consumers to feel like the debt review process has failed them, and so they incorrectly blame Debt Counsellors and then try cancel their applications.

The Courts: The courts play a crucial part and must ensure that the interest of all the parties are protected when hearing the matter. Certain courts however, focus more on technicalities than the merits of the case. These courts have very strict requirements that need to be complied with, before the court even bothers to look at the merits of the case. Certain courts for instance, require a certified copy of the consumers ID, even though all the other documents, (including those of the credit providers), confirm the identification of the consumer. These additional requests, even though they are within the Magistrates discretion, give the consumer the impression that they are not receiving the protection offered in the NCA. Many consumers struggle to find the time and finances required to meet these extra demands which they would not face in a different court. This can result in massive delays and many extra trips to the courts for the Attorneys trying to help the consumers and banks.

National Credit Regulator: The NCR has a mandate to regulate the industry and, inter alia ensure the debt review process works. Years after the inception of the NCA, the problems mentioned above sadly still persist.

DEBT VADER The last task team report about debt review was done all the way back in 2009, over 12 years ago. Unscrupulous Debt Counsellors, who are well known to credit providers and other hard working Debt Counsellors, still somehow manage to operate in the industry. Greedy and inefficient credit providers still get away with debiting consumers after they applied for debt review, and courts seem to just add more and more requirements daily due to the Act not being amended to address such issues. These are just some of the reasons why so many consumers are still not getting court orders. There are others, of course. The result is that so many who have entered the process and are loyally paying off their debts can unfortunately end up thinking the process is not working (even though it actually is). This can make them think about dropping out of the process – which is an incredibly bad idea. All parties in the debt review industry have an obligation to try and help desperate, debt stressed South African consumers. It will take a concerted and ongoing effort focused on solving problems rather than personal rights or convenience to ensure that the NCA’s envisioned process is actually achieved. The question is, will it happen or will these issues simply continue to drag on and on?

*The views expressed by Debt Vader do not necessarily reflect those of the Debtfree Magazine team. The purpose of the article is to spark debate and conversations around this topic for the betterment of the industry. To give Debt Vader a piece of your mind, send us a message for him at: DebtVader@debtfreedigi.co.za

SERVICE D

CLICK THE C

DEBT COUNSELLORS

SUPPORT SERVICES

TRAINING

FINANCIAL

INSURANCE