Debtfree Magazine issue 9 of 2021 by Debtfree Magazine

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

THE 2021 DEBT REVIEW AWARDS Issue 9 of 2021

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FROM THE EDITOR There is an old saying: “How do you know when a politician is lying? When his lips are moving”. Cynical, no doubt, but people around the world, and throughout history have been burnt by politicians making promises they never intend to keep and hiding the truth. From the famous: “I did not have sexual relations with that woman” to the ‘blame it on minorities’ strategies of the 1930’s Nazi party. It seems lies and politics goes hand in hand. But obviously it’s not only politicians who lie, we all tend to lie to ourselves. Go stand in front of the mirror and tell yourself that you look skinnier than when lockdown began, tell yourself that you look better now than you did 10 years ago*, tell yourself that combing your hair that way hides your bald spot. One area where we inadvertently lie to ourselves, is when it comes to money and debt. Often these are just ‘little’ lies (eg. I need it, I can afford it). Small lies with massive ramifications on our decision making, and life choices. In this issue we have a look at some of these common lies and consider how they hurt us. Why not read through the article and see if anything resonates with you. Perhaps you have been selling yourself one of these lies for years now. It might be time for a change, yes we can! * hopefully you do, we are just using this as a generalized example of self delusion

It has been a busy few weeks for the Debtfree Magazine team as many of us also work on the Debt Review Awards project and help with the organisation of the event. Those of us who do, were glad when things went off without too many hitches, phew! We really want to thank the supporters, participants and generous sponsors for all your help to help make the event a success. We could not have done it without you! We have something of a summary article (or 6) in this issue, as we look behind the scenes and review some of the glam of the event. Yup, even though the event was done remotely this year, some of you really went all out to celebrate, the closest the debt review industry gets to, a national holiday. Well done to all those recognized this year and to those consumers who got their clearance certificates. We are so excited that you are now debt free! So, put the kettle on, and take a few minutes to relive the highlights of the Awards, check out the latest financial news, some tips and advice. Take a moment to reflect on your attitudes towards money and debt and enjoy this issue. Things are tough out there between the pandemic, the economic challenges of lockdown, stress from work and family and having to pay off your debts. If you made it through another month then we want to say well done to you. You made it this far, please keep going. You can do it and that’s no lie, soon you will be debt free.

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CONTENTS THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT THE 2021 DEBT REVIEW AWARDS

BANK STOPPED FROM REPOSSESSING HOME BECAUSE CONSUMER WAS AHEAD ON PAYMENTS

DEBT REVIEW SCHOOL

SERVICE DIRECTORY

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BREAKING NEWS

34.4% UNEMPLOYMENT Stats SA has recently released their Quarterly Labour Force Survey results and the South African unemployment rate has hit a new record high in 2021. The survey which has been officially running since 2008 tracks how many people are looking for work and how many people are employed. The results of the survey, which covered the first half of 2021, show that unemployment has gone up from its previous official record high of 32.6% and has now increased to 34.4%. This means that at least 54 000 South Africans lost their jobs during April, May and June 2021. The stats also showed that, of those who were actively looking for work, around 186 000 more people have simply given up during these 3 months on trying to find any kind of employment. They now think it is a waste of time and have become discouraged. There are currently almost 8 million South Africans looking for work each day. Stats SA and Government use different calculations and classifications to define what it actually means to be unemployed. The current 34.4% definition is actually significantly lower than the broad description of unemployed people. Using those parameters SA currently sits at a very scary 44.4% unemployment. These stats makes SA the most unemployed nation in the world among those countries that still have the infrastructure to report on such stats (many countries are in too much chaos to even report).

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RCS & NIMBLE NOW COLLECTING JET & EDGARS DEBTS When Edcon got into trouble and went into business rescue things were bound to change, including what would happen with the debtors’ book and debt review matters. The business rescue practitioner made arrangements with both RCS and Nimble Group to sell them part of the debtors’ book for both Jet and Edgars. This has however made things slightly different and a little tricky for Debt Counsellors who have clients who have debts with those brands. The NCR has released a short circular with a helpful addendum letter that can be used with regard to clearance certificates (download below). The circular from the NCR explains that since the book has been sold Debt Counsellors will have to check in with both RCS and Nimble (preferably at the same time) to see if the account they are dealing with has gone to either of them. Debt Counsellors can do this by emailing: RCS Group – edgarsenquiries@rcsgroup.co.za jetenquiries@rcsgroup.co.za Nimble Group – accounts@nimblegroup.co.za

When the account is eventually paid up then Debt Counsellors can get paid up letters from either RCS or Nimble (depending on who is handling the debt). Some accounts have not been bought by RCS or Nimble and the business rescue practitioner views these accounts as uncollectible or they may have already legally ‘prescribed’. They will not be attempting to ever collect these debts and they are viewed as paid up and the account closed. The Debt Counsellor will be able to use the addendum (download below) to attach to their correspondence with the credit bureaus when they have to send proof to the credit bureau that the debt has been settled. This means that no further payments are needed and the account will be removed by the bureaus and the consumer can go ahead with their clearance certificate. Debt Counsellors should be sure to retain a copy of the Annexure for their records as they will no doubt need it to assist their clients. Circular: https://debtfreedigi.co.za/wp-content/uploads/2021/09/Jet-on-sale-accounts-Circular-06-updated.pdf

Annexure: https://debtfreedigi.co.za/wp-content/uploads/2021/09/Annexure-A-EdgarsJet-on-sale-accounts.pdf

Debtfree Magazine want to thank the team at DCASA for their help in preparing this news article.

NCR RECKLESS LENDING GUIDELINE UNDER CONSIDERATION The National Credit Regulator (NCR) organises a group discussion about industry topics at the Credit Industry Forum (CIF) and calls for comments on known issues in the industry. One such area under discussion is reckless lending. This is where a consumer is granted credit even though they: • did not understand the language of the contract • did not understand the obligations they were agreeing to • did not get a quote of the costs (a pre-agreement) • did not get a contact document setting out the costs and their obligations It can also be reckless when a credit provider: • fails to check if the consumer can actually afford the debt • finds the consumer can’t afford the debt but still give them the credit anyway. The final one is seen by most people to be the sole reason why a credit agreement is reckless but all the other points are not to be forgotten.

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If however any of the above is true the account is reckless and some interesting things can happen. For example, a court can say the debt only has to be paid after all other debts are paid up first. A court can decide to write off some or all of the debt. A court can even tell the credit provider to pay the consumer back for all the payments they already did up to that point. Or the NCR can decide to ask the National Consumer Tribunal to fine the credit provider (up to 1 Million rand). So, this is serious stuff. In the past when 1 branch of African Bank in KZN was found to have granted some credit recklessly to 12 clients the whole bank ended up crashing (in the confusion and chaos that followed). At present, the NCR are trying to see if Debt Counsellors and credit providers like the proposal they are thinking of using to make a, non binding, guideline to send out to the industry. In several discussions and groups across the country, the response to the proposal has not been favourable. For many Debt Counsellors, one area of concern is that the current proposal may mean they will never get paid for the many many hours it takes to do a reckless credit investigation. This has not been popular. Other Debt Counsellors have raised concerns about timelines and other technicalities that may arise as a result. The NCR has made a call for comment and various Debt Counsellor groups are submitting replies highlighting their concerns.

REPO RATE UNCHANGED The SA Reserve Bank’s Monetary Policy Committee (MPC) has decided to leave the repo rate unchanged at the record low of 3.5%. This will continue to provide credit users with some relief in the face of the lockdown and pandemic. Reserve Bank Governor, Lesetja Kganyago did, however, say that this are going to change in the near future and that rates are likely to go up. He said: “The implied policy rate path of the Quarterly Projection Model indicates an increase of 25 basis points in the fourth quarter of 2021 and further increases in each quarter of 2022 and 2023.” Basically, rates are going to go up a few times over the next 24 months. So, brace yourself or lock in these low rates while you can.

We’re not back, we never left. NPDA is now iPDA.

As one of the four licensed Payment Distribution Agencies in South Africa, we work with several hundred DC’s, paying several thousand creditors and managing payments for thousands of consumers. We still offer a range of benefits and controls that make the way you serve your clients faster, cheaper and more intuitive. For more information or a free demo, visit us at www.ipda.co.za.

THE

BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

LIAR, LIAR, PANTS ON FIRE! You lie, you know you do. You know you shouldn’t. We tell our kids not to and then we turn around and tell our spouse that the burnt dinner is “not that bad” and “no, those jeans don’t make them look fat”. One of the people we are best at lying to is ourselves, we excel at it. Often when we don’t want to do something, we will create an excuse (perhaps even a lie) about why we shouldn’t, and we make a subconscious decision to believe our own excuse. It might be something like, it’s raining outside so I can’t exercise today. It’s not raining inside is it? But we decide that the reason is good enough because we actually want to avoid doing it. Or perhaps we tell ourselves we ‘need’ something, really, really need it, when we actually don’t. It could be that slice of cake or perhaps even that fancy car. When it comes to debt, there are all sorts of excuses people give for staying in debt instead of taking steps to become debt free. Here are some of the most popular lies and why they are not actually true:

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

EVERYONE HAS SOME DEBT 24 Million South Africans are credit users (so, around 1 in every 3). Out of those 24 million many have missed a payment or two as they struggle to decide who to pay this month with the income they receive. Around 9.6 million people are behind on debt repayments by 3 months or more. 7 Million people have credit cards, and on average owe R20 000 each. 6.7 Million have personal loans and owe on average R45 000 each. And those are just the loans in the ‘formal’ sector, which reports to the NCR, and does not cover loans to family members of local Mashonisas.

It is normal in South Africa to borrow money. It is normal to take a really long time to pay off your debts, and many people will live in debt their whole lives, never paying off their credit cards and always taking on more loans to pay off previous loans. So, then is it silly to ask if you really need debt? Surely, based on those stats, you need debt just to get by in South Africa. No, you don’t. Going to those stats again, you soon realise that if there are 59 million people in SA and only 24 Million credit users then 35 Million South Africans are not making use of credit from the banks and stores. That means more people don’t use credit than those who do. It is just likely that all your friends and people that you work with make use of credit. It is simply not true that everyone has debt. Millions of South Africans live debt free every month.

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

SOME DEBT IS GOOD People will tell you that you need some debt to get a good credit score. So, go out and take on debt so that you can get more debt later, when you really need it. It is true that credit scores do take into account your debt and repayment history. If you don’t have debt, then it is hard for a credit provider to know if you will pay them back or not. But every time you apply for credit, whether you get the credit or not, is not dependent on your credit score. It depends on whether you can afford it or not. The credit provider has to do an assessment when you apply. Do you earn enough and have enough left over after paying for your monthly running costs to pay them back? That is what is important. Even if you have lots of credit and pay it all back reliably, if you cannot actually afford to repay some new form of credit, you will not get that credit, it is illegal.

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

THERE ARE GOOD AND BAD DEBTS While it is true that some debts can help you get an asset, there are also massive risks associated with taking on big debts. For example, you may take on credit to buy a house. You may live in it for decades and raise your children in it, making regular monthly repayments. You may feel like you have made a good investment. Then the economy turns, property loses value. You lose your job and miss too many home loan repayments, and suddenly the bank is selling your home on auction. You find that the investment you have been paying off for all these years, actually still belongs to the bank and after it gets sold for cheap, you end up owing the bank a lot of money. It happens with people’s flashy cars all the time and they end up paying off a car (for years) that they no longer have. It is very sad and frustrating. The only good debt, is one that you have paid off.

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

MONEY IS COMPLICATED A lot of people in debt think they have to be some sort of math wizard to understand and win when it comes to money. But that’s not true, we tend to over think money, money is simple. It is good to have money because you can use it to buy stuff and do things. If people owe you money, that’s not good. If you owe people money that’s not good. See… simple.

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

I DON’T EARN ENOUGH TO PAY OFF MY DEBT Whether it takes you six months or six years, paying off your debt is possible no matter what your income looks like. It might not be easy, but it is possible. Often it is just a case of making a plan, putting more funds into settling your debts and making it a priority. There are things you can do to reduce how long it takes to pay off your debts. EARN MORE Sounds simple but it is not. There are however some things you can do like: • Start a side hustle and use those funds towards settling your smallest debts first. • Ask your boss for a raise. REVIEW YOUR MONTHLY EXPENSES You may have cut costs in the past but it is good to regularly look at how you spend money. What we spend tends to creep up each month. GET HELP If you are sick you go to a professional doctor, right? If you have debt issues then you should also get help or advice on how best to get rid of your debt from a registered professional Debt Counsellor.

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

I DON’T KNOW WHERE TO START Yes, you do. You just have to cut your spending on some things, especially if you are unable to earn more. It’s hard to say “no” to eating at restaurants and going on holiday. Maybe you feel you deserve it, but you deserve to live without debt even more. A very interesting thing happened when lockdown first began. People were not able to go out and spend money like they usually did. So, even though lockdown messed with how much people were earning, it also meant they were not spending as much. As a result more people than normal managed to pay their debts, they actually had the money they needed. So, if you have debts then ask yourself: Are there things I can give up to reduce my monthly running costs? It might be small things. Maybe you don’t order out today or this week, perhaps you don’t buy that pie at the tuck shop for lunch each day and rather make a sandwich. In fact, it is probably good to start with small things so that you can convince yourself that it is possible. Once you see how you can manage to save a little with smaller changes, then you may begin to think about other bigger ways to save a lot each month.

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

MAKING A BUDGET IS TOO HARD Some people who are in debt don’t even know how much debt they owe because they’re not keeping track of it. They just pay their installments each month, often the minimum amount, and then use their credit cards and overdraft to make it through the month without ever wondering how much it is costing them to be in debt every month. Talk about sticking your head in the sand! Budgeting isn’t hard, it just requires using your calculator to work out 3 figures: 1. How much do you earn (take home after tax and all that)? 2. How much do you owe to your credit providers every month (what should you be paying them)? 3. How much do you spend on stuff every month? Once you know those 3 figures you will quickly see if there is a problem or not, and where you need to make adjustments. The rest will happen by instinct.

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

I NEED TO USE CREDIT TO LOOK GOOD AND GET THE RESPECT I DESERVE People who appear to “have it all” are normally the ones deepest in debt. Everything they appear to own is actually owned by the bank, or other credit providers. They have sold their future work hours and their peace of mind to appear to have it all. What do they actually have? Ulcers probably, if they miss a few payments and could end up with nothing. Goodbye house, goodbye fancy car, hello summonses, judgments and public auctions. If your friends only respect you because of the things you own, then you don’t need more credit, you need better friends.

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

CREDIT LETS ME HAVE WHAT I WANT NOW While it is true that credit is a great way to get something now rather than later, it is also true that many of the things that you ‘think’ you want will ultimately lose their glow and you will realise you could have done without it all along. You may need that fancy phone now, but in a few months when they start advertising the newer, better version you may find that your phone doesn’t seem so good any more. The question is: Was it ever? Did you really want it or where you chasing something else? Having lots of things can make us feel important and safe. But if everything you have is actually owned by the bank then what do you really have? Have you fallen into the trap of buying things you don’t need, with money that you don’t have, to impress people you don’t really like?

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

I CAN GET OUT OF DEBT ANY TIME Some people tell themselves that they are using credit all the time as a luxury and they could get out of debt anytime, if they really need to. They just don’t want to right now. As a result, they usually just make the minimum required debt repayments each month and live in debt. They never think about what it is costing them. This is often because they have never sat down and had a close look at what it costs to be in debt. Every month they are paying interest, account fees. Every year they are paying access fees. Your car is losing value as you read this article.

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

I NEED A CREDIT CARD FOR EMERGENCIES It is true that having access to a credit card in an emergency can be a life saver. If the geyser suddenly bursts then you can reach for the card and pay for the repairs immediately. If your car tires are looking a bit dodgy, you can just put the new tires on credit now and pay it off over time. The problem is that soon everything begins to feel like an emergency. New appliance now, rather than later? An emergency! That new dress for your date. An emergency! Groceries from that fancy brand store? An emergency! Before you know it, you can be right back in debt because your entire life seems to run from emergency to emergency. Rather than using credit continually for emergencies, why not start to set a little bit aside every month as an emergency fund. Don’t go wild, start small and let it build up over time. By just learning to wait and live with a little inconvenience, you can also find that many emergencies can wait till payday to be resolved.

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

I CAN’T LIVE WITHOUT CREDIT Maybe you have been using credit for many years. In the past, your solution to running out of money would perhaps be to run out and get another loan or get a higher credit limit. You just kept digging yourself deeper and deeper into the debt pit. Old habits are hard to break. But hundreds of thousands of South Africans have made a change, and taken the first steps of their debt review journey. Yes, it is a big change at first, and most do it because they are desperate at the time, not because they want to live without debt. Then something strange happens. They adjust, people are amazing. They learn to live a cash lifestyle. They no longer buy things they cannot really afford. They learn that sometimes you have to wait to buy something even though it is inconvenient and difficult but, they survive. At the same time, they pay off their debts every month, getting closer and closer to being debt free and eventually not owing anyone anything. It is possible, hundreds of thousands of people are doing it right now, you can too!

THE BIG LITTLE LIES WE TELL OURSELVES ABOUT DEBT

STOP LYING TO YOURSELF Well, it is true that getting into debt is a lot more fun (and a lot easier) than getting out of debt. Paying off debt requires first changing the way you think about money and possessions. That can be a real challenge, if you carry on thinking that your personal worth comes from the things you own, then you are always going to struggle with having enough money. But paying off debt is something people do every single day. Millions of people live without any debt whatsoever. Millions of people only use the money they have to buy the things they can afford. They have a budget and they stick to it. They even budget in a little for having fun and buying nice things every month. Getting out of debt can be tricky if you have a lot of it and you may need a little advice. Well, hundreds of thousands of South Africans just like you have gone online, picked up the phone or walked into a Debt Counsellor’s office and asked them how they can get out of debt, and they are successfully doing it. You can too…if you really want to. So, stop lying to yourself.

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DEBT REVIEW LESSON #2

You should keep a record of all your emails, letters, forms and statements about debt review. Keep it somewhere safe. Remember: computers and phones get old and die. Remember: papers get lost and so do phones. So, think about storing these files online or in the “cloud” on Dropbox, Gmail or Drive or something similar and secure.

The Annual Debt Review Awards were live streamed via YouTube on Friday 10th September 2021.

Host Omphile Setiloane opens the online live stream

THE ANNUAL DEBT REVIEW AWARDS SHOW 2021

INDUSTRY PRE-SHOW The Debt Review Awards Livestream event kicked off the mammoth 5 hour long stream with an industry section where members of the debt review legal fraternity discussed current legal trends and challenges. This was followed by a highlights package from the recent State of the Consumer Credit Industry webinar which was hosted by Consumer Friend. Next viewers got to hear from previous winners of the various Award categories about how it feels to be recognised by your peers. Then it was time for some informative product demonstrations and updates from DReX and Maximus. These popular and helpful software suites help Debt Counsellors (and consumers) get the most out of the process and with information sharing within PoPI Act guidelines.

THE ANNUAL DEBT REVIEW AWARDS SHOW 2021

THE DEBT REVIEW AWARDS SHOW The Awards Show began at 2pm and guests were both amazed and entertained by the mentalist and memory tricks and skills of Mr. Michael Abrahamson. Michael has recently been on TV on Klop die Kunstenaar as well as setting world records remembering Pi to the nth degree. He is known as the “Power Brain” and it showed. Michael made use of his extensive memory and manipulation to get guests to pick certain things and to work out numbers they had picked. Michael would be back later in the program to teach guests some useful memory techniques to use in their day to day lives (no more forgetting that grocery list). If you watched the show you probably can recite the list of ten items he gave you now using the tips he provided. We will give you a hint it started with “carpet” Just because the event was held online did not mean that guests could not have a little fun and get dressed up and celebrate a little. At different homes and offices across the country, people got dolled up, served some drinks and snacks and enjoyed the livestream.

HERE ARE THE TWO WINNERS OF T FROM THIS YEAR’S “BEST D

THE R500 TAKE-A-LOT VOUCHERS DRESSED” COMPETITION.

THE ANNUAL DEBT REVIEW AWARDS SHOW 2021

THE ONE AWARDS Yes there are two of them... that’s just how we roll. Though the majority of the Debt Review Awards process focuses on the activity of credit providers and Debt Counselling practices as a whole, each year participants in the peer reviews are asked to identify 2 individuals who are making a significant contribution to the industry. This year, with the help of ONE, Attorney Quintin Zimmerman of Liddles and Head of Debt Review at ABSA, Mr Jaco Van Der Merwe were recognised. Quintin Zimmermann founded the law firm, Liddle and Associates with his wife, Robyn in 2009. Quintin is that rare breed of attorney that doesn’t charge by the minute (much to his wife’s consternation). He says he uses his loud voice to champion justice and irritate his wife. Able to leap tall buildings in a single bound, Q will always come to your rescue, except on Friday afternoons. The Technology Adoption Award for 2021 went to Debt Erasers and recognizes a practice that is making use of the DReX system and encourages their clients to do the same to stay up to date with their debt review matters.

THE ANNUAL DEBT REVIEW AWARDS SHOW 2021

THE SPEAKERS There were a number of presentations and speeches during the Main Show including words from the NCR Head of Debt Counselling Ms Kedilatile Legodi. Ms Legodi was able to give some information about efforts being made at the CIF and NCR in dealing with the challenges facing consumers and the industry. Mr. Benay Sager who spoke on behalf of the National Debt Counsellors Association, was able to present a state of the industry update, looking at how things have been going in the industry during the lockdown. Benay was no doubt later very pleased as his team (at DebtBusters) was recognised for their hard work, taking home the highest ratings in their Debt Counsellor practice size category. Mr. Justin vd Linde (formerly of Consumer Friend) hosted part of the show about a day in the life of those involved in the debt review process. The audience got to have a look into the busy lives of Credit Providers (like Capital Data), Debt Counsellors (like DCGsa), PDAs (like Hyphen PDA) and Attorneys (like Steyn Coetzee). The take away from this section is that everyone works very hard, and it is not uncommon for those in the industry to feel like they are swamped with never ending work to do. There were also some valuable warnings for consumers from Annienne of Consumer Debt Support, and Reinhart of Debt Therapy who delved into the dangers consumers face before and during the process from unscrupulous scammers.

THE ANNUAL DEBT REVIEW AWARDS SHOW 2021

CONSUMERS GETTING OUT OF DEBT Debt review is an amazing process that helps people deal with their debt in a dignified way. It also helps people pay off all their debt and become debt free. A highlight of the show every year is to get to meet some of these consumers and see how debt review has changed their lives. This year it was great to see how Standard Bank and Debt Counselling Practice, National Debt Counsellors (NDC) had worked together to cut 12 months off of the review process for two lovely consumers who had loyally been sticking to the process for several years. It reminded the audience that the entire process is all about helping people deal with their debt and make a fresh start. Well done to both NDC and Standard Bank for making it happen and to Roseline and Nconyiswa for sticking with the process and getting out of debt!

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THE ANNUAL DEBT REVIEW AWARDS SHOW 2021

WHO WON WHAT? Each year, after an industry wide peer review, the results of the peer reviews are announced during the annual Debt Review Awards Gala (or online show during the pandemic). The peer review process helps identify the top rated debt counselling practices in South Africa as well as PDAs and Credit Providers. The highest rated practice or company in each category is awarded a Golden Piggy Bank Award. Let’s take a quick look at the results.

THE ANNUAL DEBT REVIEW AWARDS SHOW 2021

GOLDEN PIGGY BANK PDA WINNERS Each year both Debt Counsellors and credit providers are asked to rate their interactions with the people who handle the money side of debt review. Debt Counsellors come up with the plans and consumers make one single debt repayment each month but it is the Payment Distribution Agents (PDAs) who split the money up into the right amount and pay that over to the right accounts each month. There are currently only 4 PDAs who are legally registered with the National Credit Regulator (NCR). Each month the NCR check on them and regular audits are held to ensure consumers funds are being handled with care. The 4 NCR Registered PDAs are: • CollectNet PDA • DC Partner PDA • Hyphen PDA • iPDA

THE ANNUAL DEBT REVIEW AWARDS SHOW 2021 Debt Counsellors receive their fees via the PDAs and the credit providers receive the consumer payments via the PDAs, so they both are very alert to how the PDAs are performing. This year, like last, credit providers rated Hyphen PDA the highest among the 4 NCR registered Payment Distribution Agents. Debt Counsellors rated DC Partner PDA the highest among the 4 NCR registered Payment Distribution Agents. This was a shift from the past few years where Hyphen PDA has taken home the Golden Piggy Bank. Debt Review Awards Founder (and our Editor) Mr. Zak King says: “With only 4 registered candidates the PDA section is always going to be hotly contested. Obviously, all 4 candidates are working within the requirements of the Act and are checked on by the NCR so, all are good. The Awards identifies who is getting the best feedback throughout the year and that’s always very interesting to see“.

THE ANNUAL DEBT REVIEW AWARDS SHOW 2021

GOLDEN PIGGY BANK CREDIT PROVIDER WINNERS Credit providers are divided into various categories such as Short Term Finance, Retail Finance, Large NonBank Credit Providers, Vehicle Finance and banks are considered both in Secured and Unsecured Credit. Short Term Finance Winner: Finbond Micro Finance Retail Credit Provider Winner: Consumer Friend (on behalf of their clients in this category) Large Non-Bank Credit Provider Winner: Old Mutual Finance

THE ANNUAL DEBT REVIEW AWARDS SHOW 2021 Vehicle Finance Credit Provider Winner: Standard Bank Banks: Unsecured Credit Winner: Standard Bank Bank: Secured Credit Winner: Standard Bank Competition in the credit providers section is tough with over 8500 different credit providers registered with the National Credit Regulator. Big winners on the day were Standard Bank who took 3 out of 6 possible Awards for credit providers. Debt Counsellors also identified FNB as the up and coming debt review department to watch out for in the future, as their service levels continue to improve recently. Credit Providers: Most Improved Winner: Standard Bank

THE ANNUAL DEBT REVIEW AWARDS SHOW 2021

GOLDEN PIGGY BANK DEBT COUNSELLOR WINNERS Due to the various different size practices that exist in debt review (from a one person operation to dozens of Debt Counsellors working under the same brand) the peer review results are announced in the following size categories: • Boutique • Small • Medium • Large • National No one type of operation receives more recognition than another, rather the process tries to compare apples with apples and oranges with oranges.

This year the Top 5 Debt Counsellors and highest rated in the various sizes looks like this: Top 5 in alphabetical order: • Alice Lubbe | Care for Debt • Johan Wepener | Johan Wepener Debt Counsellors • Lee Lombard | Garden Route Debt Counsellors • Lee-Ann Sansom | CIDA – Capes Independent Debt Advisors • Petra Swanepoel | Streamline Debt Counselling Boutique Debt Counsellors have a reputation for paying close attention to their clients and providing fast turnaround times. This year the highest rated Debt Counsellor in this Top 5 group was Lee Lombard of Garden Route Debt Counsellors.

Top 5 in alphabetical order: • Andre Carelse | AC Debt Counsellors • Joy Victoria Minnies | Debt Quest • Karl Schweidler | Wineland Debt Counsellor • Margaret Bekker | Help U Debt Counsellors • Shaun Zeelie | Master Your Money There are many smaller Debt Counselling practices in South Africa with many possible candidates for the Top 5. This year Shaun Zeelie (a previous winner) took top honours in this category for his work under the brand Master Your Money.

Top 5 in alphabetical order: • Awie Coetzee | SA Debt Help • Eugene Cilliers | Pay Plan Solutions • Gerhard Stoltz | Gerhard Stoltz Debt Counsellors • Russell Dickerson | RD Debt Counselling • Tania Dekker | Debt Free with Armani Medium sized Debt Counsellor Practices commonly have 2 or 3 Debt Counsellors working along with a team of admin assistants. They often share an office (or work remotely together) and share staff resources. Well organised operations can provide clients with a balance of personalised attention and resources to pursue complicated matters, or deal with challenges that come along during the review process. This year Mr. Russell Dickerson, who is currently the Debt Counsellors of South Africa Chairperson, once again took the top spot for the second time in two years. Russell is well known for his hard work with the association and in supporting fellow Debt Counsellors. It seems the credit providers also recognise his hard work in looking after his clients. Top 5 in alphabetical order: • Credit Matters • DCGsa • Debt Care • Debt Therapy • Summit Financial Partners Large Debt Counselling practices are defined in the review process as those that have over 1000 clients and less than 4000. These are growing practices that are taking on many new clients each month, and are traditionally very proactive in their branding and advertising.

Most of the names in the Top 5 will be familiar to anyone involved with the industry, and often these practices take the lead in local Debt Counsellor initiatives and associations as they try to improve the industry and promote the debt review process. This year DCGsa (Debt Counselling Group South Africa) who are based primarily in the Eastern Cape took home the Golden Piggy Bank Award. As you can see mentioned in the video (in Afrikaans) Top 5 in alphabetical order: • DEBTBUSTERS • DEBT RESCUE • NATIONAL DEBT ADVISORS (NDA) • NATIONAL DEBT COUNSELLORS (NDC) • OCTOGEN The make-up of the Top 5 National Debt Counselling practices remained the same as in 2020 showing a high level of consistency. These practices have many, many thousands of clients and operate with large teams of cooperating Debt Counsellors and their admin staff. The various Debt Counselling practices in the top 10 in this size category have helped over 80% of the people who have ever made effective use of the debt review process. All have a good reputation for engaging closely with credit providers and actively trying to promote debt review and ongoing improvements in the debt review process. For a number of years, household brand, DebtBusters retained the top spot in this size category. In 2020 they were replaced by National Debt Advisors (NDA). This year DebtBusters were able to reclaim the top spot and once again take home the Golden Piggy Bank.

Debt Review Awards Founder (and our editor) Mr Zak King says: “It is always nice to see who has received the highest ratings by their credit provider peers. We wait to hear the results each year with great anticipation. It is like our industry’s Oscars”. Zak and several members of the Debtfree team and other volunteers have been organising the event since 2014. He also says: “It is appropriate that extra recognition goes to those who take home the 5 Golden Piggy Banks. It is worth mentioning, however, that all those who made the Top 10, making up 50 different debt counselling practices, should be really proud. There are hundreds of Debt Counsellors in the country and to be recognised from among all these very hard working individuals and practices is a real achievement”.

THE ANNUAL DEBT REVIEW AWARDS SHOW 2021

THAT’S A WRAP All in all the Debt Review Awards event helped shine a light on consumers getting out of debt and making use of the debt review process and also recognised the efforts of individuals who are working hard in the industry. It was a moment’s reprieve from a lot of the pressure and stress that those who work hard in the industry face every day. Those on the Debtfree Magazine team who also help on the Debt Review Awards project say that they are very happy that all the guests and viewers could tune in and our Editor, Mr. Zak King, said he was “blown away by all the support and effort” made to make the event a success.

Thank You To Our Supporters & Sponsors The Debt Review Awards is supported by credit providers such as ABSA, African Bank, Capital Data, Consumer Friend, FNB, Nedbank and Standard Bank; Service providers such as insurance giant ONE, Maximus and Slipstream Technologies play a big role in aiding and promoting the process each year. Also supporting the Awards process are NCR registered Payment Distribution Agents such as DC Partner, Hyphen PDA and iPDA. Associations such as DCASA, NDCA, iDCC and MFSA helped in communication with the industry about the process. The Awards Show this year featured speeches from both the National Debt Counsellors Association and the National Credit Regulator. Attorneys Steyn Coetzee, Kemp du Bruyn and DL Attorneys also played a valuable part in helping with the show this year. The organisers want to thank all these parties as well as all the Peer Review participants for your support and efforts this year.

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When you call your Debt Counsellor, remember that the person who answers the phone is probably not going to be your Debt Counsellor themselves but rather some sort of administrative assistant. If you need serious debt review advice then speak directly to your Debt Counsellor.

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Well done to all 50 Debt Counsellors recognized this year at the Debt Review Awards.

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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?

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ations to all s at the Debt Awards.

We are beyond proud of all our DCASA members who were nominated at the Awards this year. We are absolutely elated that four members won “Best DC Practices” in the industry out of the five different DC categories. Congratulations!! Check out our latest video: tinyurl.com/7hxuxr2u

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

A LEGAL VIEW

BANK STOPPED FROM REPOSSESSING HOME BECAUSE CONSUMER WAS AHEAD ON PAYMENTS

A debt review consumer missed some scheduled monthly debt review payments. The bank wanted to get a judgment and sell off the house but the consumer was way ahead of their home loan repayments. What happens in this situation? In an Application for Summary Judgment in the Western Cape High Court, the Bank involved argued that, despite the debt review client having made a massive lump sum payment of R100, 000.00 back in July 2013, the subsequent missed monthly debt review payments constituted a default in terms of Section 88(3) of the National Credit Act. Even though the consumer was ahead of his payments on the bond, the Bank persisted with the argument that “the Defendant had defaulted each and every time he did not make the monthly payment which means he did not comply with his obligation to pay each month”. The learned acting Judge De Wet agreed with Attorney Quintin Zimmermann of Liddles and responded: “How it can be argued that monthly non-payments in circumstances where a (debtor) such as the Defendant had paid in excess of what was owing in terms of the restructuring order, amounts to a default of the restructuring order, is beyond comprehension”. The Western Cape High Court further showed its disapproval of the Bank’s conduct by ordering the Bank to pay the consumer’s legal costs and holding that “the Plaintiff’s persistence with this application in circumstances where the Defendant was clearly not in arrears

A LEGAL VIEW when summons was issued and had in fact paid in advance, raised serious concerns whether the Plaintiff acted bona fide herein”. So, it is good to be a bit ahead on home loan payments in case this situation ever comes up and this is a good precedent case for Attorneys and Debt Counsellors to keep in mind if a similar situation arises. Consumers can also look into insurance products specially for consumers in debt review that can help them make payments if they temporarily lose income etc.

Debtfree Magazine want to thank Liddles & Associates for their help in preparing this article Case reference: Western Cape High Court case no. 19520/2018

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