Debtfree Magazine July 2019 by Debtfree Magazine

SOUTH AFRICAâ&#x20AC;&#x2122;S DEBT COUNSELLING MAGAZINE

The Glitz

The Glam

The Winners

July 2019 www.debtfreedigi.co.za

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Getting positive feedback is always refreshing. We love it when readers write in and say how much they enjoy reading this magazine. Sometimes we gather the whole team and share such positive thoughts with everyone. It can be a real morale boost when someone acknowledges your hard work. After many months of organization of the Annual Debt Review Awards, we were delighted to see the entire event come together during July. From the workshops to the Gala evening, we had a lot of fun and we are pleased to share some of the action in this month’s issue of the magazine. It is our industry’s version of the Oscars and everyone who was able to attend, had a good time. The guests looked very glamorous and all the top rated firms and individuals from the industry peer review were announced. Congratulations to all those who were recognized this year!

our industry. A little bit of positive feedback goes a long way to motivate us to continue our hard work. However, what do we do when all we receive are complaints? In this months’ issue, we look into this subject and discuss if your business is set up to deal with the complaints you are bound to get at some point. Falling short in this regard has cost many companies large portions of their client base. We also catch up on recent industry news and court cases that are going to impact on you. We talk to two Debt Counsellors whose passion for consumers moved them to start a debt counselling practice and are now having a great time helping those who desperately need assistance.

We even get a tiny bit technical, and look at one of those weird Latin expressions that credit providers like to include in contracts that you may be confused about, the good news is that it is simpler than you thought. We also feature some tips and advice to help make your financial journey through debt review a little It is always nice to see hard work easier. and effort being recognized within

We hope you enjoy the issue, and would like to once again say well done to all those top rated companies and individuals recognized in this yearâ&#x20AC;&#x2122;s Debt Review Awards. We also want to give a little feedback to our readers, and say well done to each and every consumer who is progressing through the debt review process and making regular debt repayments. We can only compliment you on working hard to help your family to become debt free.

FROM THE

E D I T O R

DEFINING DEBT REVIEW Debt Review is the LEGAL answer when you feel overwhelmed and burdened by your debt every month. Instead of running away from your obligations, you can consolidate your debt into one lowered monthly instalment. Knowing you can not incur further debt also adds to peace of mind since you will be able to finish paying the debt at hand and not increase your over-indebtedness. In most cases, creditors even consent to lower interest rates, which then saves you both money and reduces repayment time. The process is legitimate and is regulated in terms of the National Credit Act. To apply, you need to contact a NCR registered Debt Counsellor and honestly complete an application form (form 16), based on this information the Debt Counsellor can assess your over-indebtedness. Once approved, and on confirmation that you would like to proceed, your Debt Counsellor will inform your credit providers of your application. Your creditors will then provide your Debt Counsellor with a COB (reflecting details such as: Outstanding balance, contractual instalment, interest rate etc.) Your Debt Counsellor will then issue a form 17.2 (a notice confirming that you are over-indebted and that the process will proceed) and then a payment proposal plan. The proposal plan will provide your creditors with an overview into your financial circumstances as well as

a proposal with regards to each credit agreement and an estimate time frame within which the debt will be settled. Your creditors can then either accept or decline the proposal and return with a counter. At the end of the day, the process is referred to Magistrates Court and if the Court is satisfied that the application is reasonable, and that you are over-indebted, the debt restructuring court order is granted. Some benefits of debt review are: • You will feel relief knowing your debt is being paid off while you are able to cover your essential day to day living costs; • Your creditors cannot take unopposed legal action, like trying to repossess your house or your vehicle; • You cannot incur further debt while in the process, so you will not end up in a worse situation than before; • All your debt falls under one umbrella, and you pay one consolidated monthly payment that is distributed amongst your creditors; • If your circumstances improve at any time, you can settle accounts or increase your monthly instalment and complete the process sooner; • You get monthly distribution statements, showing what was paid to which creditor and it provides you with a current outstanding balance; • Once all the debt is settled, a clearance certificate is issued and the debt review flag is erased from your credit report profile. Know your rights and focus on your monthly budget. If you feel the financial squeeze, then instead of taking on more debt, rather restructure your current debt and put it behind you. DebtZen | Tel +27 (0)21 987 1835

DebtZen

for peace of mind

I WOULD LIKE TO COMPLAIN

DOMICILIUM CITANDI ET EXECUTANDI

THE 2019 DEBT REVIEW AWARDS

DEBT REVIEW AWARDS BEHIND THE SCENES

SERVICE DIRECTORY

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C O N T E N T S

I WOULD LIKE TO

COMPLAIN

I WOULD LIKE TO COMPLAIN It is unreasonable to think that (in any business) you can help a large number of people without ever having someone complain about some aspect of your work. Dealing with complaints has become part of doing business in a consumer focused world. If you are a business owner, have you got a complaints process in place, and how could this save you a lot of trouble in the long run?

I WOULD LIKE TO COMPLAIN

WHY DO PEOPLE COMPLAIN? Most times when we complain, it is because we feel deprived of something we were promised in advertising or when we first received a product or service. We feel that something is not right, and we would like it to be sorted out. We do not want to wait a long time for this to happen, and would like someone to give our complaint the serious attention it deserves. It is true that in some cases, it might not actually be a legitimate complaint, and the person may be complaining about something they shouldn’t, but this does not change how they feel at the time. They are not 100% satisfied with the situation, and would like someone to help them. The old saying goes that if you don’t ask you don’t get. So, if consumers never ask for better service or a better product, they will never get it. Instead they simmer in their unhappiness and eventually they will simply stop using that company’s product or services. This does not benefit the business and leaves the consumer feeling disappointed and offended. They may even start to tell others not to use the product or service because of their negative experience.

I WOULD LIKE TO COMPLAIN

IGNORING COMPLAINTS IS HURTING YOUR BUSINESS How companies deal with complaints often separates the successful from the unsuccessful. It distinguishes those who are going to grow and flourish, from those who are unable to effectively give their clients what they want. It is very disheartening to put a lot of work into your product and service, only to find out that you have a bunch of negative reviews on websites like Hello Peter. Even if you have worked for many years to build a brand and deliver great service, bad reviews tend to stand out and get a lot of attention. This may scare other consumers away from using your services. Ignoring complaints is business suicide. Hiding your head in the sand helps no one. If your client has a complaint (legitimate or imagined) then it is best to deal with it as swiftly as possible.

I WOULD LIKE TO COMPLAIN

DO YOU HAVE A COMPLAINTS PROCESS? If you run a business, do you have an internal complaints process? Do your staff know what to do if a consumer is unhappy? Do your clients know how they can complain, if they need to? What can they do if they feel their complaint is not getting the attention it deserves? It is vital that your business has a defined complaints process. Take the time to set it out on paper, and then make sure your team know how a complaint should be dealt with. Ensure that your clients have a number or email address which they can contact with any complaints. When receiving complaints, set rules about how long you will take to resolve a matter, and how long you will leave between updating your client. Track progress in regard to complaints so that no complaint falls between the cracks and goes unresolved.

I WOULD LIKE TO COMPLAIN

IF THEY CANâ&#x20AC;&#x2122;T COMPLAIN TO YOU... If consumers do not know how to complain to you directly, they will quickly complain to others about you. They may head online to sites such as Hello Peter or even complain to Ombudsmen and Regulators instead. Then a small complaint, which could quickly have been dealt with, is blown into a full scale investigation that requires many, many hours of work. If consumers do complain directly to you, they want to know that something is being done about their complaint. Even if the situation cannot be rectified immediately, they want to know that you are aware of their concerns and are doing something about it. A simple follow-up message every few days can help assure them that this is the case. Giving your clients the silent treatment, is likely to convince them that you do not care and are not doing anything to help. If they feel ignored by you, they will reach out to others with their complaint.

I WOULD LIKE TO COMPLAIN

A COMPLAINT IS A CALL FOR HELP Often clear communication is the solution to most complaints. For example, if a consumer is confused about how a process works, and is feeling unsure, they may start to complain thinking that the process should work differently to how it actually does. By speaking directly to them as soon as their concerns come to your attention you will be able to reduce their uncertainty. By addressing their concerns swiftly you show the client that you view them as important, and want to help them as far as possible. A complaint may seem like a bad thing at first, but itâ&#x20AC;&#x2122;s really just a way for your client to ask for help. You probably like to help your clients. If you are able to effectively help your client with a concern they have, then this will build trust between you and them. They will be grateful for your help even if they felt that you were not giving them the service they expected at first. It is another chance to build client loyalty and satisfaction. Never view a complaint as a burden, rather see it as a chance to win your client over even more. Happy clients will be your best ambassadors and are more likely to promote your services to their friends and family.

Take Back Control Of Your Finances We provide a remedy specifically for over-indebted consumers which involves restructuring of debt payments, lowering interest rates and fees and lengthening payment terms. Debt Counselling could be the best gift you give yourself.

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DEBT REVIEW SCHOOL If you want to check if a credit provider or Debt Counsellor is really registered with the National Credit Regulator you can visit the NCR website: www.ncr.org.za

DOMICILIUM CITANDI ET EXECUTANDI

Domicilium citandi et executandi is a fancy old Latin term which, if directly translated into English, means something like a â&#x20AC;&#x153;house for summoning and upkeepâ&#x20AC;?. It is a legal term meaning the address chosen by a party in a legal contract where legal notices may be sent. When you sign a contract for financing, or when you take out a loan you promise in the contract document to update your credit providers if you move. This is so that they can find you and communicate with you. For example, when you finance a car through a bank, you will sign a contract with the bank detailing how you will repay the financing. In the contract, you agree to an address where the bank can send legal correspondence (especially if you start to miss payments). This address would be your Domicilium citandi et executandi.

DOMICILIUM CITANDI ET EXECUTANDI

UPDATING YOUR CREDIT PROVIDERS WHEN YOU MOVE Some people think that if they are struggling to keep up debt repayments it is a clever idea to move and not tell your credit provider where you have moved to. This way, if they send you legal documents, it will go to the wrong address. Is this a good idea? These days’ credit providers often make use of companies who specialize in tracing or finding consumers, and where they have moved to. Ironically, part of the signed contract says that if the credit provider needs to do this, or spend money to collect money from a consumer (like legal fees to lawyers) that the consumer agrees to pay for this. Most consumers who have a mobile phone (with a sim card) have had to provide proof of residence when they took out or renewed their contract. This info is captured with the various credit bureaus, so it is very difficult for consumers to ‘disappear’ anyway. Having legal papers pile up at your old address does not help either your credit providers or yourself as you may be robbing yourself of an important legal right. What right could that be?

DOMICILIUM CITANDI ET EXECUTANDI

DEFEND YOUR RIGHTS If your credit provider is taking legal action against you, is it a good idea to be in the dark about it? No. Part of the legal process, is your right to defend yourself and present your side of a matter to the courts. Over the years many consumers have lost homes and cars because they didnâ&#x20AC;&#x2122;t go to court to defend their rights. Although the system has improved by insuring people have the chance to defend themselves, you still want to know if a credit provider is sending you a summons so that you have the chance to defend it effectively. If you are in debt review it is vital that if a credit provider start a second legal collections process, (remember debt review is itself a legal process) that you get to defend the matter. Some credit providers might have outsourced legal collections departments that start sending out summonses and do not realize that you are already under debt review. Other credit providers might be unhappy with the small amount you can afford to repay each month through debt review, and in a fit of greed decide to ignore the debt review and send you a Section 86(10) notice that they want no part of the debt review.

The good news is, regardless of why this might happen you, with some help from your Debt Counsellor and attorneys will get to defend the matter, In most cases this will involve part of the National Credit Act called Section 86(11). This is when a court forces a credit provider to cooperate with the debt review legal process even if they do not really want to. This reduces the work load on the courts and avoids duplication of effort, which just wastes the courts time and resources. If you receive a summons while under debt review, you should immediately call your Debt Counsellor and let them know. Then you must show them a copy of the summons and talk to them about how you can defend the matter. Do not ignore a summons and ensure that your Debt Counsellors and attorney helps you go to court.

DOMICILIUM CITANDI ET EXECUTANDI

IF YOU MOVE If you have taken out credit and have agreed to repay the debt in a contract, then you have given your credit provider your Domicilium citandi et executandi address. You have also promised to tell them if this address changes. Doing so, makes sure that you will be notified quickly if they are taking any legal action against you which you need to defend, this protects you. So, be sure to update all your credit providers if you move. You should also notify your Debt Counsellor so that they also have a record. If you change other contact information, such as your email address or phone number, then you should also make sure your Debt Counsellor and Payment Distribution Agent have your new contact info. After all, they are there to help you so make sure they can get in touch quickly.

The Annual Debt Review Awards and those individuals and comp

This year the Debt Review Awards G Counsellors, credit providers and co the Awards galas have been held se Debt Counsellors and credit Provid Regulator (NCR) wanted to work to

s is a celebration of what debt review is accomplishing across South Africa panies who are constantly working hard to improve the process.

Gala evening was held in Mount Edgecombe in Durban. This provided local Debt onsumers the chance to attend and be part of the event. Over the past few years everal times in both Cape Town and Gauteng where the highest concentration of ders have their offices. This year, however, the organizers and the National Credit ogether to bring some extra love to those working in the industry in KZN.

K ZN To give KZN some extra love in 2019 special arrangements were made for local Debt Counsellors and Credit Providers to go and visit one another during the week leading up to the Gala evening. This allowed some in the industry to get to meet face to face for the very first time. It also assisted many to get a better understanding of how their industry counterparts prefer to handle debt review matters. A second arrangement was a day of industry workshops, held in Durban North. The National Credit Regulator got to engage with local registrants and even those who had travelled to Durban early for the workshops from Gauteng, Cape Town, East London and PE. Workshops by various banks, insurance providers and payment distribution agents (PDAs) provided invaluable information sharing and training to those who attended. The Debt Review Awards is not simply all work and no play and so, on Friday evening those who had travelled from far got to enjoy a dinner at a local restaurant so that they could meet and mingle. Once again the more relaxed setting allowed people to get to know one another better, fostering a sense of community.

Most Debt Counsellors and credit providers spend all day at work, spending hours on the phone, sending emails and attending court to help consumers become debt free. They seldom have a chance to catch their breath and reflect on all the good they have accomplished. So, it was great to see these hard working individuals all dressed up at the Awards evening which was held in Mount Edgcombe. Everyone looked their best and got to enjoy some pampering and fun at the Annual Debt Review Awards Gala.

Host for the evening Mr Darren Maule of East Coast Radio took time to take some selfies with guests before kicking the evening off with some amusing anecdotes and stories giving some local Durbs flavour to the evening. The NCR was well represented by Ms. Kedilatile Legodi who spoke passionately about how the industry really helps consumers resolve their debt issues. She spoke about how the NCR are committed to assisting consumers and the industry and how the industry can work together to improve the consumer experience. Mr Chris van der Straaten of Hyphen PDA had a similar message revealing that well over 1 Billion Rand is being repaid to credit providers through debt review every month. He briefly mentioned the coming change of DebiCheck (something discussed in much detail during the Friday workshops) and warned that there is a period of challenge coming to all industries that make use of debit orders for payments. Overall the changes coming will benefit consumers once they learn to trust the change to the DebiCheck system. Our Editor Zak King used the example of a gym contract that requires little or no active use to highlight how for some debt review can sadly be meaningless. If consumers donâ&#x20AC;&#x2122;t actively engage with the process, become

part of the process and if not motivated properly the high rates of consumers who start the process but fail to finish will continue to be a “crisis” for the industry. Guest speakers from the Consumer Financial Education Foundation (a NPO) expressed their concern that some media outlets have run incorrect information about the debt counselling process and that consumers are still not familiar with how debt review really works. They shared some of their efforts in educating consumers over the last 12 months. Ms Denise Hartley of Nedbank encouraged all to take a moment and realise how far they had come in improving things since the NCA was first introduced. She also discussed how the industry has stalled in making huge improvements since the system now pretty much works. She urged all to look for ways to dramatically improve how debt review is done and how consumers experience the process. She urged all to do better and be better. Russell Dickerson, the President of the Debt Counsellors Association of South Africa (DCASA) spoke about all the challenges facing a typical Debt Counsellor. He explained that those firms who are offering nonregulated alternatives to debt review are a danger to consumers. They act unscrupulously and cannot be held accountable. He also touched on firms who offer to help consumers “get out of debt review” simply to get fees out of them and later abandon these consumers. He urged the industry to take action to help the Regulator stop these abuses by those outside the industry. A common thread ran through all speeches on the evening that the process needs to continue to be improved and become even more accessible to consumers. Successfully helping consumers not only start but make the entire debt review journey to clearance certificate is vital in helping them reshape their financial future.

At the moment, over 220 000 people are making use of the debt review process to solve their debt problems. It was great to have around 30 different consumers, who were clients of Pioneer Debt Solutions, attend the Gala and receive their clearance certificates on the night. These clearance certificates show that the consumer has paid off all their debts and is finally debt free. The audience enjoyed seeing so many consumers successfully coming to the end of their debt review journey. They also enjoyed hearing the personal experience from one client who explained how stressed she had been before debt review and how the process had turned her financial future around. She explained how she had been so ill before entering debt review due to her high stress levels. She had been so worried about her kidsâ&#x20AC;&#x2122; education and simply trying making ends meet each month. After going through debt review she is now a much healthier and confident person, has sent her kids for further education and has responsibly reentered the credit market only taking on credit which she can realistically afford.

DEBT REVIEW | CREDIT LAW | LITIGATION CONTRACTS | FAMILY LAW | WILLS & ESTATES

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ONE|DEBT REVIEW AWARDS 2019 SIGNIFICANT CONTRIBUTION AWARDS The Annual Debt Review Awards in partnership with ONE, a specialist insurance provider to the debt review industry, announced the two winners of special Awards recognising individual effort in the industry. These two highly sought awards are designed to focus on individuals and their efforts over the year or years to improve the industry. While much of the Debt Review Awards peer review process considered companies as a whole (eg. an entire credit provider debt review centre) the ONE Awards look at how a single hard-working individual can make a huge difference within their own organisation and thereby the industry. Past winners have been from across the entire spectrum of companies and entities involved in the industry such as Attorneys involved in important court cases and staff members at the Regulator (NCR). This year both individuals came from the credit provider side of the industry.

Justin van der Linde with the coveted red ONE Significant Contribution to the Debt Review Industry Award.

Mr Luis De Cruz of Wesbank was recognised by ONE at the Debt Review Awards for his Significant Contribution to Debt Review.

PAYMENT DISTRIBUTION AWARDS

Each year during the Debt Review Awards peer review two different sides o

On the one hand credit providers who work daily with the PDAs (in receiving p software and work with them to organise and track consumer payments. In a rep the industry. They were the highest rated among their peers again this year.

of the industry get to review the Payment Distribution Agencies (PDAs).

payments) and on the other hand the Debt Counsellors who make use of their peat of the 2018 results, Hyphen PDA took home the Awards from both sides of

DEBT REVIEW AWARDS CREDIT PROVIDER WINNERS There are currently over 7000 Credit Providers registered with the National Credit Regulator (NCR). Over the last 12 months, Debt Counsellors had the opportunity to conduct a peer review of those companies they regularly work with and know while assisting consumers with their debt review. The credit providers who received the highest ratings were separated into several categories such as Short term finance, vehicle finance, retail finance, Banks and Large Non-Bank Credit Providers. The Golden Piggy Bank awards were handed to the top-rated firms by Debt Review Awards external auditor Mr Barry Fuchs (of BKF). Internationally the piggy bank is a well known symbol of saving and being money conscious. It well represents the ideal of helping consumers get out of debt and strive for financial freedom through the debt review process.

In the Category SHORT TERM FINANCE the Award went to

FinChoice

In the Category of RETAIL FINANCE the Award went to

Consumer Friend

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In the Category LARGE NON-BANK CREDIT PROVIDER the Award went to

Old Mutual Finance

In the Category of VEHICLE FINANCE the Award went to

MFC

In the Category of BANKS (UNSECURED CREDIT) the Award went to

African Bank

Who also swept up a certificate for most improved credit provider debt review department over the last 12 months.

In the Category of BANKS (SECURED CREDIT) the Award went to

Nedbank

Like a sir!

DEBT COUNSELLOR AWARDS Each year through an industry peer review the Debt Review Awards identifies 50 Debt Counsellor winners. These 5 groups of Top 10 Debt Counsellors were identified by the industry over the past 12 months as standing out among their 1600 fellow Debt Counsellors. On the night of the Debt Review Awards Gala additional information about these groups of Top 10 Debt Counsellors is provided such as who the highest rated Debt Counsellor in each size category was. For the full list you can head over to: http://debtreviewawards.co.za/top-50-debt-counsellors-2019/ This year these were the 5 highest rated practices as identified by credit providers during the industry peer review: The BOUTIQUE DEBT COUNSELLING PRACTICE Award went to

Arno Lubbe The SMALL DEBT COUNSELLING PRACTICE Award went to

Andre Carelse of AC Debt Counsellors The MEDIUM DEBT COUNSELLING PRACTICE Award went to

Eugene Cillier of Payplan Solutions

The LARGE DEBT COUNSELLING PRACTICE Award went to

Debt Therapy

The NATIONAL DEBT COUNSELLING PRACTICE Award went to

Debtbusters

All who attended, those who received Golden Piggy Banks and those who did not, enjoyed the evening and were once again motivated to push for the highest levels of consumer service. Guests enjoyed delicious finger foods and desserts and got to spend some time discussing the speeches and the various top rated firms this year. Everyone felt moved to continue their efforts to promote debt review as one of the best processes to help over indebted consumers rehabilitate themselves and responsibly re-enter the credit market. Thank you to all the generous sponsors, willing organizing team and supporters who helped make the process a success again this year. For more information about the Top 5 in each category head over to the official Debt Review Awards website: http://debtreviewawards.co.za/winners-2019/

What if...

YOUR CLIENT’S VEHICLE IS STOLEN OR WRITTEN OFF?

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MA XIMISING INSUR ANCE RELATED INCOME

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

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NEWS DISCOVERY BANK BEGINS TO TAKE ON CLIENTS IN ERNEST For some time now the new Discovery Bank has been running with a smaller group of 1000 accounts on their banking system (which has over 120 connected systems according to Group CEO Adrian Gore). They are now happy that the system is working well and have opened the doors to new clients. The bank says in the weeks ahead, they anticipate adding 1000 new clients every day.

NCR WEBINARS The National Credit Regulator (NCR) has announced a series of exciting webinars which they are making available to Debt Counsellors to share information about common industry challenges. The Regulator has a unique overview of the industry and the challenges it faces, because they receive complaints from all parties about credit related matters. Debt Counsellors will be invited to sign up and participate in the webinars or even download and view them later. The NCR feel this will help them not only share their views on how matters can be dealt with, but help keep Debt Counsellors up to date with the current best industry practices.

LADYSMITH REELS IN WAKE OF PONZI SCHEME COLLAPSE The streets of Ladysmith have been swarming with angry groups of people who lost everything in the Bitcoin Wallet Ponzi Scheme. Residents have been searching for the founder, who has disappeared, and have even burnt down a house in anger. For months the scheme had been building towards its ultimate collapse and it is estimated that in the final days before imploding it was raking in approximately R1.9 Million daily for nearly 2 weeks. While many had been told, by the now vanished Mr Sphelele Mbatha, that it was indeed a ponzi scheme, he had promised them it would last for several more weeks and they still had time to put in more money and turn a profit. Many

local residents sold assets or borrowed from loan sharks to fund their investments in the scheme. They would queue for hours outside the shop before it was eventually closed down. At first, Mr Mbatha claimed that he was forced by local authorities to close his shop and the operation was moving online. Later he claimed it had been hacked and the money was gone. Then he changed his tune and said he merely worked for someone else before he eventually made run for it overnight and disappeared. Over the last few days, in the wake of the schemes collapse, the streets outside the local police station have been full of very sad, disappointed people, trying to report how they were scammed.

REPO R ATE CUT The SA Reserve Bank (SARB) Monetary Policy Committee decided to cut the repo rate during July 2019. The repo rate is the rate that the banks borrow money from the reserve bank. The rate was cut by 0.25 points to 6.5%. The MPC felt this was a good move based on weak local economic growth, which may be boosted by such a cut and inflation being under control around their goal of 4.4%. The local decision follows suit with decisions made elsewhere in the world in 26 countries such as Indonesia, Australia, Russia, India and South Korea.

EXTINGUISHING MORTGAGE ARREARS Lookout for interesting upcoming local court cases which will deal with the possible extinguishing of mortgage arrears due to Repo Rate adjustments by banks. In 2014 a case involving the Bank of Scotland was given that when a bank recalculates what a consumer owes them based on a repo rate change, they are effectively consolidating a clients arrears into the newly structured bond. Similar arguments are being presented locally, and it will be interesting to see how the local courts deal with this issue. If local banks are making changes to the accounts that cancel their right to collect on arrears,

then thousands of consumers could protect their homes from repossession and those who have lost them, may have a claim against the banks for double dipping and selling off their property without just cause.

LESETJA KGANYAGO REAPPOINTED Mr. Lesetja Kganyago has been reappointed to his current post as Reserve Bank Governor by President Ramaphosa. His appointment to the post lasts 5 years (though in the past we have often seen changes happen overnight to this post

with the markets fluctuating as a result). Mr. Kganyago has been very vocal on the topic of keeping the SARB independent of political interference and adhering to the job description given in the SA Constitution. Recently the SARB was caught in a tug of war between different factions in the ruling party which damaged the rand. The President and Mr. Kganyago took a very firm stance on the matter restoring investor confidence despite some concerns. Fundi Tshazibana and Rashad Cassim were also appointed as Deputy Governors of the bank. The appointments run officially from the 1st of August 2019.

South Africaâ&#x20AC;&#x2122;s

leading Debt Counsellors since 2007

Start getting out of debt today! www.creditmatters.co.za Call our national call centre on

086 111 6197

DEBT REVIEW SCHOOL Did You Know? If you are soon going to have to take maternity leave did you know you can ask a court to delay or postpone debt repayments (NCA Section 86 (7)(b)).

INDUSTRY INTERVIEW

Rochelle Rossouw (Debt Counsellor) and Sudette du Plooy (Attorney and Debt Counsellor)

DebtZen

for peace of mind

021 987 1835 021 987 2232 065 939 9886 leads@debtzen.co.za www.debtzen.org NCRD3032

How long has DebtZen been around?

What part of SA do you practice in?

Our knowledge and expertise run way back to 2012, before which we were busy in the legal field. Currently, DebtZen has two registered Debt Counsellors.

Even though our offices are located in Kraaifontein, Cape Town, we render debt review assistance to all South Africans nationally, and have a wide panel of Attorneys working with us all over the country.

Why did you become Debt Counsellors? We dreamt of facilitating a change in our community, we recognised the financial battle that consumers were having, and realised that this is how we could legally assist them, through debt counselling. Seeing the consumers relief that comes from knowing that they are legally able to pay a lower instalment towards their debt, and still provide for their family, that is priceless! Tell us a bit about your company. We are a medium sized debt counselling firm, we strongly believe in giving every one of our clients personal attention.

What do you feel makes your business a success? We have a young, dynamic team and our commitment is to mke a change in the community and give over-indebted consumers peace of mind. We do not work on automated systems, we prefer to give this delicate sensitive financial state the personal attention it deserves and requires, while striving to improve consumersâ&#x20AC;&#x2122; financial affairs and their state of mind. Debt and financial constraints can have such a negative effect on a consumerâ&#x20AC;&#x2122;s life and state of mind that it needs to be dealt with personally and with due diligence. We drive to optimise their financial health.

Where do you find new business? We get lots of client referrals as well as a lot of consumer’s contacting us via our website – www.debtzen.org. We also have a facebook page and welcome anyone enquiring with us. Who are your most co-operative and least co-operative credit provider these days? Debt Review has come so far these days that most credit providers are now co-operating. What is the biggest challenge facing Debt Counsellors at the moment? This is quite funny as Debt Review itself is sort of a big challenge. We are of the opinion that time constraints is one of the biggest challenges in the process, however our young dynamic team does not hold back one bit and faces challenges head on every day.

What is the biggest challenge facing your consumers at the moment? Constant inflation of living costs and unforeseen challenges. What advice do you have for consumers experiencing debt stress? Don’t wait until it is too late, if you are running on a tight budget and cannot get by, rather see a registered Debt Counsellor, get assessed and apply for debt review. Should your circumstances improve, you can always pay more, settle and finish up the process. In the meantime, you will have peace of mind knowing that you are legally protected, while you are paying a lowered instalment towards your debt and taking care of your responsibilities at home.

cont’d...

What advice do you have for consumers already in debt review? Donâ&#x20AC;&#x2122;t stop paying your debt review instalment, failure to uphold your instalment and court order will only result in terminations and unnecessary legal action and costs. Always keep your Debt Counsellor informed of any change in your circumstance. Even though a Debt Counsellor cannot guarantee that a credit provider will not terminate, if something legitimate happens, and your Debt Counsellor is made aware, they can communicate with your creditors and termination can possibly be stopped/hold back while you are afforded the chance to get your payment in place.

Always keep your Debt Counsellor informed of any change in your circumstance.

COURT MATTERS

NATIONAL CREDIT REGULATOR VS STANDARD BANK

(South African Human Rights Commission intervening as amicus curiae) South Gauteng High Court - Judge Raylene Keightley The NCR recently took Standard Bank to court over a common banking practice called “money grabbing” by consumers or “set off” by the banks. This is where a credit provider suddenly just takes money from a consumer’s account to settle a debt in a different account with the bank. The SA Human Rights Commission, who are very interested in the constitution and consumer rights, asked to be involved in the case and provide extra info about how ‘set off’ damages the debt review process. This would include testimony from a well known Debt Counsellor. The court decided to allow this. National Credit Act (NCA) Section 90(2)(n) is all about charges and set off in particular, and was discussed in detail during the case, as was Section 124 of the Act. The question is, has the old common law set off been totally replaced by the descriptions given in these

two sections of the new Act? Consideration had to be given to the possibility that both (the old and the new) forms of ‘set off’ could run at the same time. The two processes are not identical, they are actually very different. Section 124 of the NCA now says that ‘set off’ can only be done with written permission from the consumer. It must also be for a specific amount on a specific date. The credit provider must let the consumer know in advance of this happening. This was never the case in the old days, when all the power lay with the credit provider to do this whenever they felt like, and for however much they wanted. So, the court had to consider, does this new process replace the old common law process since the NCA does not specifically state that it does. This would be especially important when a credit provider and consumer’s agreement does not specify which form of ‘set off’ applies – the old common law version or the new improved NCA version. These days most agreements simply leave out any reference to this. Some, like the NCR, feel that leaving it out simply provides a loophole, whereby many credit providers are avoiding the new form of ‘set off’ as per the NCA.

The bank stated that as far as they know, consumers under debt review should never have had the old ‘set off’ process applied to them, but it seemed that testimony by Debt Counsellor Mr. Paul Slot showed that this has regularly been happening and has very negatively affected consumers. THE RULING In the end, the Court agreed with the NCR and SAHRC that this practice is no longer acceptable and must stop. The court felt that because any reference to the old ‘set off’ would be illegal under the new NCA it is not enough to simply leave it out of a contract these days, and that this does not magically make it legal again. This would, in fact, be contrary to the purpose of the National Credit Act and the new form of ‘set off’ described. In the end, the High Court ruled that the old form of ‘set off’ is now dead for any type of contracts and credit that fall under the National Credit Act.

It is declared that, in light of sections 90(2)(n) and 124 of the National Credit Act 34 of 2005, the common law right to set-off is not applicable in respect of credit agreements which are subject to the National Credit Act.

PROFESSIONAL DEBT COUNSELLING ATTORNEYS TEL: 021 872 1968 1 1 M A R K E T S T R E E T, PA A R L w w w. s t e y n c o e t z e e . c o . z a

Die Republiek van

SKYT AFRICA Hi Almal, Daar kry die Openbare Beskermer en haar kantoor, ek noem doelbewus haar kantoor aangesien sy nie in haar eensaamheid ondersoeke doen en verslae opstel nie, die soveelste snotklap van die regsbank vir swak en onsamehangende besluitneming. Of haar gevolgtrekkings uit haar ondersoeke polities gedrewe is of n gebrek aan kundigheid of beide is sal net sy weet. Die feit bly staan dat sy haarself met n groep eners denkers in haar kantoor omring het en kollektief kom hulle tot swak besluitneming en gevolgtrekkings en die einde is niet in sig. Feite en rasionele denke is nie ter sprake nie. Is dit nie dieselfde swak besluitneming wat die naarstiglike soeke na nog persoonlike skuld dryf nie? Bitter min is die besluit om n nuwe voertuig te koop, nog n kredietkaart of n persoonlike lening te kry n individuele besluit, gewoonlik is dit n gesamentlike besluit deur die partye in beheer

van die gesin. Eners denkend in die soeke na n oplossing vir n toenemende skuldprobleem en moontlik is die een party die leier en die ander maar net instemmend tot n besluit wat ernstige nagevolge gaan hĂŞ. Wanneer die begroting nie klop nie is dit logies dat uitgawes en skuld verminder moet word, dit is onlogies om nog skuld aan te gaan, jy kan nie jouself uit skuld uit leen nie. Die onlangse verlaging in rentekoerse is n ideale geleentheid om te herbesin en die begroting te hersien. Sommige mag voel dat die verlaging minimaal is maar daar kon net twee ander scenarioâ&#x20AC;&#x2122;s wees, die rentekoers kon onverander gebly het of dit kon verhoog het. Benut die verlaging ten bate van jouself, gebruik dit om jou skuldlas te verlaag deur steeds die paaiement soos voor die verlaging te betaal. Elke sent help op die langduur! Die onrasionele denke dat die minimum maandelikse betalings n werkbare oplossing gaan wees selfs onder skuldberadering en dan die proses of die DC te blameer is baie soos wat die Openbare Beskermer redeneer, soos n hond wat vir sy eie gat blaf. Groete, Christo Christo Hattingh Kyk gerus my LinkedIn profile: https://www.linkedin.com/in/christo-hattingh-351a52130/ * Seriously please do let us know if you found this article to be funny/offensive/amusing/interesting feedback@debtfreedigi.co.za

www.collectnetpda.co.za

Congratulations to all those recognised in this year’s Debt Review Awards.

Debt Counsellors Collective Check out the upcoming CIF Agenda on our Facebook page. We encourage all registered DC’s who are not affiliated with an association to join so that DC’s get the opportunity to influence decisions taken by the NCR.

Join our discussion about the NCR & MFC on our members only Facebook page.

www.allprodc.org

Congratulations to all the 2019 Debt Review Awards winners

www.bdcf.co.za

DCASA Branch Meeting Dates: Eastern Cape (Elizabeth Place) 23 August 2019 Free State (Kopano Nokeng ) 12 July 2019 Gauteng (Kempton Park Golf Club) 30 July 2019 KZN (Westeville Country Club) 23 August 2019 Western Cape (Parow Golf Club) 23 July 2019

www.dcasa.co.za

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

KIM ARMFIELD

AND ASSOCIATES

When debt review clients don’t pay they put your entire practice at risk! We make sure you get paid for the work you’ve already done! Tel: 021 949 1758 | 084 702 3760 info@legalwc.co.za | w w w.capeat torney.co.za

DEBT REVIEW SCHOOL Did You Know? The NCR changed their guideline about Debt Counselling fees. They now suggest legal fees be taken in the month of the court order however, most DCs stick to the old arrangement of taking legal fees in month 2.

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