Debtfree Magazine June 2017 by Debtfree Magazine

South Africaâ&#x20AC;&#x2122;s debt counselling magazine

CELEBRATE YOUR VICTORIES June 2017 www.debtfreedigi.co.za

What you can expect from Hyphen PDA: • Increased Debt Counsellor Profitability • Flawless Systems • Meaningful Reporting • Contented Consumers!

www.hyphenpda.co.za

Chris van der Straaten, Head: PDA 082 557 0437

Malcom Povey, Head: Operations PDA 082 445 5604

Don’t expect to hear an endless amount of “spin” around why things failed!.

DEBT REVIEW AWARDS WINNER

PAYMENT DISTRIBUTION

CUSTOMER SERVICE

INDUSTRY SUPPORT

SOFTWARE INTEGRATION

Be careful what you wish for…they say the sentiment of being ‘careful what you wish for because you may just get it’ is attributed to Aesop from around 550CE. Regardless of where the saying comes from, it is often true of so many things in life. We think we are desperate for something (and often we are) and then we get it and yet we feel a bit cheated and unsatisfied.

have. They start to dream of getting credit again so that they can buy new things: a car or a house or maybe just a short term loan to cover bills they have run up. They forget they had problems paying for the things they already have and don’t qualify for new credit since they are over-indebted. They wished they had no more credit problems until they were in debt review and suddenly they want to use credit again. It is like the People in Britain said they wanted to leave cravings for sugar dieters seem to get after the EU (not realising it came with a huge only a day or two of their diet. bill for doing so). Year after year, around the world people, go to the polls to put ‘It is like the cravings for sugar politicians into power they later complain about. It is a very human thing to do. People dieters seem to get after only a in the Cape were desperate for rain (they day or two of their diet’ still are) and then along comes a storm to thunder and pour down with real ‘gusto’. Not too long ago, a credit provider People’s homes were flooded and roofs association asked the NCR and DTI to blown off, trees and walls fell over in the review fees their members could charge. wind. Scary stuff really but it did bring the Their wish was granted and the fees they rain wished for. could charge for unsecured credit were slashed (they later took it to court to have Many consumers who enter debt review are that changed back). Payment Distribution sick of being chased by collections agents Agencies wished to be part of the NCA and over unpaid debts. They wish they could their wish was granted, along with slashed sort out their situation and not have to fee rates they could charge. deal with that situation ever again. While in debt review, credit providers can not grant you credit until your review is complete. It is then strange when the same consumers, a few months later, start to long for credit use again while still under debt review. While still paying off the debt they already

Debt Counsellors have been wishing for an increase to their fee structure for many years now. Inflation and increased costs have pushed hundreds of Debt Counsellors out of the industry. Recently the NCR decided to pursue some research into the topic. That said, the DTI and NCR have been very quiet about asking Debt Counsellors for advice this time. Even when reviewing new fee options, the NCR’s outsourced research firm approached only a handful of firms for info. Their findings and suggestions have been kept very secret till now. At the moment, parliament is looking to make amendments to the National Credit Act, something that many have been wishing for, for some time now…probably, since it’s inception, actually. The Act has been amended once before but many key issues were left untouched despite suggestions and proposals at the time about needed changes. In fact, many of the changes that were made instead, complicated people’s lives rather than simplified them or left people wanting more. With elections coming up, positive consumer driven changes might

be a real political boost. Will the new amendments be all that people wish for?

‘we take a look at all the Red Carpet glamour of the Debt Review Awards 2017 and find out who all the winners were’ Other than the latest news about possible amendments this issue, we take a look at all the Red Carpet glamour of the Debt Review Awards 2017 and find out who all the winners were in the industry peer review as announced at this month’s Gala evening. On top of that, we have tips, reviews, advice and more. We also look at the victories consumers under debt review should celebrate, the opportunities they should embrace as they take the journey to paying off their debts. It is a slow and steady process that leads to a fantastic goal. So we hope, nay… dare we say it: we wish that this month brings you one month closer to being debt free.

FROM THE

E D I T O R S DESK

AVM

The best lead generation tool for the DC industry Deliver your recorded message to thousands of numbers in minutes - collecting surveys results and hot-transfering leads to your call centre.



1 Create and Schedule

2 Broadcast your Message

3 Collect results Per nd Seco g Billin

AVM Benefits    

100% cloud. No hardware or installations required Save agent's time and resources High outbound capacity Pay only for recipients reached

Switch to Othos    

Cheap call rates Fastest support in the industry Call by call quality check Exclusive purchase and billing portal

Try our termination

FOR FREE

Got your own dialer/PBX solution? Othos will give you R100 for a free trial, to test our trunk on your existing VoIP ready platform.

The Full Solution

Hosted PBX & dialer - Internet connection - Networking

 021 673 6801

 contact@othostelecom.co.za

 www.othos.co.za

CELEBRATE DEBT REVIEW

NEWS

SURVIVING THE RECESSION

CAN COURTS GRANT LOWER INTEREST RATES

DEBT REVIEW AWARDS

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 editorsâ&#x20AC;&#x2122; panel and the author of the content, as applicable. Debtfree Magazine, authors and contributors reserve their rights with regards to copyright of their work.

C O N T E N T S

CELEBRATE

Celebrate your Debt Review We all love to reward ourselves. From the first time we realized as an infant that if we cry loud enough mom will come running and feed us and pay us attention we became hooked on rewarding ourselves. People love to celebrate all sorts of things. Birthdays (well done you came out of another human!) to finishing school (you can go get a job now and stop leeching off your family) or even just the fact that it is Friday (you survived another 5 whole days of working with your colleagues). We reward ourselves for a session at the gym with a tasty smoothie (well done me, I must be thinner already). Debt review may seem like one of the last things you would want to celebrate. After

all, if you are in debt review it means that you could not cope with handling your debt situation as it was by yourself. That sounds like failure, not victory. Or is it? To fail is to find no way out, to give up, to surrender entirely. Debt review can hardly be said to be giving up. In fact, it is a way to not only live up to your obligations to your family and their monthly household needs but to make sure you pay back your creditors too.

Credit ProteCtion – debt review

SuRe SuRe

Applied to go under debt review? Restructuring your monthly expenses? why not insure all your accounts on the one Credit Protection?

Credit ProteCtion Credit ProteCtion – debt review – debt review we will contribute towards yourdebt accounts in the event of the following: Applied to go under Applied debt to review? go under review? Restructuring your Restructuring monthly expenses? your monthly expenses? • death – we settle the account why not insurewhy all your not accounts insure all on your the accounts one Credit on the Protection? one Credit Protection? • temporary disability – we pay the Debt Review payment for 6 months we will contribute we towards will contribute your accounts towards inyour the event accounts of the infollowing: the event of the following: • Permanent disability – we settle the account • death – we settle •illness the death account wesettle settle the • Critical ––we theaccount account • temporary disability • temporary – we pay disability the Debt –Review we paypayment the Debt Review payment • retrenchment – we pay the Debt for 6 months for 6 months Review payment for up to 9 months

• • •

Permanent disability • Permanent – we settle disability the account – we settle the account Critical illness • – we Critical settleillness the account – we settle the account At a rate of R perthe R1000, retrenchment • –2.95 we retrenchment pay Debt – our we pay the Debt rates are among thetobest and our Review payment for Review up 9payment months for up to 9 months

benefit structure is the best in the

At a rate of R 2.95 At pera R1000, rate of Rour 2.95 per R1000, our market. rates are among the rates best are and among our the best and our benefit structure isbenefit the best structure in the is the best in the market. market.

ContACt one oR youR debt Counsellor! 0861 one 266 562 ContACt oR ContACt youR one oR youR debtwww.one.za.com Counsellor! debt Counsellor! 0861 266 562 0861 266 562 www.one.za.com www.one.za.com sam Haasbroek:

082 550 7294

sam Haasbroek: sam Haasbroek: sam.h@one.za.com 082 550 7294 082 550 7294 sam.h@one.za.com sam.h@one.za.com

marijke wessels:

082 729 3833 marijke wessels: marijke wessels: 082 729 3833 082 729 3833 marijke.w@one.za.com marijke.w@one.za.com marijke.w@one.za.com

terms & Conditions aPPly

terms & Conditions termsaPPly & Conditions aPPly

ONE Insurance Underwriting Managers ONE Insurance (PTY) LTD Underwriting Reg(PTY) No. 1996/008987/07 Managers (PTY) LTD Reg No. 1996/008987/07 Underwritten by: ONE Insurance Underwriting Managers LTD Reg No. 1996/008987/07 Authorised Financial Services Provider Authorised FSP8783 Financial VAT No. Services 4370160501 Provider FSP8783 VAT No. 4370160501

Underwritten by: Underwritten by:

Authorised Financial Services Provider FSP8783 VAT No. 4370160501

A Member of

A member of the

A member ofGroup the

A member of the

Group

CELEBRATE

AT THE START:

Celebrate Finally Taking Action

You sat for some time before entering debt review dealing with the mounting stress of not being able to handle your obligations at home and your obligations to all your creditors. It was stressing you out and making things hard for your family and for your credit providers. You probably were sleeping poorly and fighting with your family and friends. You really should celebrate finding a way to balance your needs at home with your obligation to pay back what you have borrowed.

CELEBRATE

AT THE START:

Celebrate Paying the First Installment

Knowing what your monthly repayment amount will be each month is a relief. Sure it might not be easy to meet the goal each month but if you stick to your new budget, it can be done reliably and consistently. Once you pay your first debt review payment then you have paid around half of what you will ever pay your debt counsellor in fees throughout the entire process*. You have already paid half of all the Debt Counsellorâ&#x20AC;&#x2122;s fees? Thatâ&#x20AC;&#x2122;s something to celebrate!

*Based on how long the average consumer remains under debt review and current fee guidelines

CELEBRATE

AT THE START:

Celebrate Paying the Second Installment

Paying lawyers hardly sounds like something to celebrate but... the legal side of the process is vital. Getting your matter to court can protect your assets. If you have been stressing about your car being repossessed then this really is something to celebrate. You now have a legal expert in your corner.

CELEBRATE

DURING THE PROCESS:

Celebrate Handling your First Collections Call

Collections calls are scary. Before entering debt review you were just too scared to answer calls from unknown numbers or private numbers. Now, you answer all calls. When you get that first call from some uninformed collections agent who doesn’t know about the debt review, how sweet it is to say:” Talk to my Debt Counsellor”. These calls still happen for a while as the credit providers call off their collections hounds. What a delight to finally be able have something to say to those pesky callers. No more living in fear is something to celebrate!

South Africaâ&#x20AC;&#x2122;s leading Debt Counsellors Click through to

www.creditmatters.co.za or call our national call centre on

086 111 6197

CELEBRATE

DURING THE PROCESS:

Celebrate Getting Your Court Order Getting your court order is just the cherry on top. Not only are your credit providers on board with the process but you have the court documents to prove it should anyone come around and pester you.

donâ&#x20AC;&#x2122;t be a twit

http://twitter.com/Debtfree_DIGI

CELEBRATE

DURING THE PROCESS:

Paying Off Your First Account That means you might wait a while before paying off your first account but when you do it is a cause for celebration. You are starting to get totally debt free. The money that was paid to this account will now go towards other accounts speeding up the process. Each

Normally due to the way that Debt Counsellors like to make things â&#x20AC;&#x153;fairâ&#x20AC;? for all credit providers, smaller debts can also take a number of months to be paid off just like bigger ones. account that is paid off speeds things up even faster, and faster, like a snowball gathering size and speed as it goes along. The first ones go slow but the last few will fly by. Soon you will have no debts. Be sure to celebrate when your first account is paid off.

debt review school A debt counsellor makes an application to court and includes several different respondents in the court documents including you, the consumer, and each of your credit providers. If a person calls you and tells you that your debt review is cancelled, is this accurate? One credit provider cannot cancel your debt review. Your debt review is a legal process organised by your debt counsellor through the court. Once all your debt is paid off according to the court order, you debt counsellor can issue you with a clearance certificate, ending your debt review.

CELEBRATE

AT THE END OF THE PROCESS:

Paying Off ALL Your Short Term Credit

Normally you will pay off all your smaller debts (normally, unsecured debt) and be left with only your larger debts like a car and home loan. With the smaller debts gone all your funds are being allocated towards your last two debts. Remember that your statement from the Payment Distribution Agents might differ from the balances shown at the credit providers for many reasons but once reconciled you will be able to focus on your big debts. You are now 80% of the way there and once your car is paid off you have the option to leave debt review so, celebrate paying off all your smaller debt.

CELEBRATE

AT THE END OF THE PROCESS:

Paying Off Your Car Loan

With this debt paid off you now have the option of leaving debt review. Do you really want to stay in debt review for the life span of your bond? Well, maybe with all those nice concessions but realistically you may once again wish to access credit to look at things like buying a new car or starting a new business. It may be time to leave debt review and stand on your own two feet. Now thatâ&#x20AC;&#x2122;s something to celebrate!

CELEBRATE

AT THE END OF THE PROCESS:

Holding Your Clearance Certificate in Your Hand

When a person finishes debt review a Debt Counsellor issues them with a form which shows they have paid up their debt and are now no longer over indebted. With either only a bond left which the consumer can handle or being totally debt free the consumer is ready to resume â&#x20AC;&#x153;normalâ&#x20AC;? credit life. Print out this piece of paper. Hold it in your hand. Smile at it.Kiss it if you want to. This truly is something to celebrate!

CELEBRATE

WHEN ITâ&#x20AC;&#x2122;S ALL OVER AND DONE:

Make a BIG Deal of Your Debt Review Successes & Milestones

How you chose to celebrate your victories in debt review is up to you. Make sure you can afford it and it is within your budget. Will it be a KFC meal on the beach or that two for one deal at your local restaurant or a waffle at Spur? Maybe you treat yourself to a nice box of chocolates and a hot cup of coffee. Maybe it is a simple as a nice meal and some popcorn while watching a movie together. If you have kids then maybe it is a games night with the kids or even better a night without the kids.

Can Courts Grant Lower Interest Rates If Asked?

When consumers enter debt review their Debt Counsellor will propose new repayment plans to their credit providers. Almost universally this involves the consumer paying less for debts each month than the credit provider had originally asked. Since the consumer can only pay less, the maths then works out that the consumer will have to pay longer. Normally credit providers like to recover certain types of credit over standard time periods. That may be as little as 30 days or 3 months for some smaller loans or 18 months or 24 months for things like credit cards. Bigger debts like vehicles and home loans also have their targeted repayment terms.

comes down but very, very slowly. This can then mean that a smaller debt might be repaid over much longer than the credit providers preferred 60 months. What credit providers have generously done in an effort to speed up repayment and to help their clients, is drop fees and charges on these debts. They normally reduce interest to the point where the debt can be repaid over 60 months or less. Some credit providers drop charges and interest entirely on unsecured debt to assist consumers under debt review. While the National Credit Act (NCA) mentions consumers paying less to credit providers over more months, it does not talk about reducing interest. Some say this is implied or that the NCA may have wanted interest removed entirely from the equation but it is not clearly stated.

Under debt review, most credit providers are happy to recover even smaller debts over 60 months (if possible). While longer repayment terms are possible, this is a target that most in the industry like to stick to. These matters are then sent to courts for a court order to be granted with a The challenge that is faced is interest. new repayment plan. This can be done Because interest adds up over time and regardless of whether a consumerâ&#x20AC;&#x2122;s because consumers often only have credit providers agree to the proposal small amounts available to repay each of the Debt Counsellor or not. While the month, it is possible for the interest Debt Counsellor makes a proposal it is figure to (1) be more than what is paid actually the court (Magistrate) which each month â&#x20AC;&#x201C; making the debt grow has to make an order. over time and (2) take up most of the payment each month - so that the debt The court might be presented with two

different types of proposals: 1. Where every single credit provider is happy with the proposals and they themselves have suggested lower interest rates so that they can be repaid faster and help the consumer. 2. A proposal where only some of the credit providers have replied saying they are happy to take less interest each month. The challenge is that the Magistrates need to make an order that is line with the NCA and upholds the consumerâ&#x20AC;&#x2122;s obligations to their credit providers. So, what does the Magistrate do when presented with a proposal that mentions interest rates and specifically lower interest rates than the consumer signed for on their original credit contract? If they consider the wording of the NCA it is silent about interest rates being changed and only mentions paying less over a longer time. Can they actually make an order which says the rates are reduced? There have been a number of differing rulings, in various courts about the subject. Some credit providers have later asked for already granted debt review court orders to be changed or thrown out because they never agreed to lower

interest rates which were included in the Debt Counsellors proposal and court order. They correctly say that a court has no authority, using the NCA, to just reduce interest without the credit provider agreeing to the change. Recently however, an increasing amount of courts have taken to refusing to grant debt review court orders where the credit providers have asked for less interest themselves. These courts say that the NCA doesnâ&#x20AC;&#x2122;t allow for changing interest rates so they canâ&#x20AC;&#x2122;t make a ruling along those lines. Most credit providers and Debt Counsellors and many courts hold the opposite opinion and say that (1) if everyone is happy that interest is reduced (which is part of many industry agreements) and (2) that if a credit provider sends a letter to say they are happy to reduce interest, then the court should be able to make such a ruling. Currently, there are two big court cases on the go which might finally resolve the matter one way or another. Another option which exists is the pending amendments to the NCA which could be adjusted to reflect such an arrangement. For now, some Debt Counsellors are simply removing any reference in their repayment proposal set before the courts as to what interest rates will be charged on the debts.

MELIORLEAF WONâ&#x20AC;&#x2122;T LOAD YOUR PREMIUMS OR REPUDIATE A LEGITIMATE CLAIM Specialist insurance for people in debt review. Ask your debt counsellor.

CALL US NOW 0861 635 467 www.meliorleaf.co.za

INDUSTRY

CONSUMER

NEWS FLASH For daily debt counselling news in 3 minutes or less visit www.debtfreedigi.co.za

PRESIDENT APPOINTS NEW NCT MEMBERS

Cabinet reshuffles and midnight changes are the order of the day and it seems the National Consumer Tribunal (NCT) has not been spared a little restructuring. The NCT has had 17 new members officially appointed by President Zuma. The role of the NCT is to adjudicate any applications made in terms of the National Credit Act (NCA) by consumers, credit providers, credit bureaus, Debt Counsellors and the National Credit Regulator (NCR). This includes matters referred to by the National Credit Regulator or complaints related to allegations of prohibited conduct and also the all important debt review consent orders brought on behalf of consumers by Debt Counsellors. President Zuma appointed: Prof Joseph Mandla Maseko as Executive Chairperson, Ms Laura Anne Best as Deputy Chairperson, Mr Lulama Andisa Potwana, Ms Diane Reinette Terblanche, Adv Frans Kgolela Manamela, Mr Xolela Christopher May, Ms Penelope Anne Beck-Paxton, Prof Tanya Woker, Adv

Hope Fiona Neo Sephoti, Prof Bonke Clayton Dumisa, Mr Fungai Khumbulani Sibanda, Ms Nomfundo Sylvia Maseti, Ms Maleho Margaret Nkomo, Prof Kasturi Moodaliyar, Dr Maria Claudina Du Toit, Mr Lehlohonolo Lucky Rabotapi, and Mr Trevor Albert Bailey.

DC REGISTRATION RENEWAL REMINDER

Debt Counsellors are required by the NCR to pay a fee each year to stay registered with them to keep practicing and assisting consumers. The annual date for renewal of registration is the end of July and Debt Counsellors are reminded not to miss their payment or they will be unable to practice. There is a period of 30 more days to make payment but late payment results in a fine. Over the years around 3000 people have studied to become a Debt Counsellor and registered with the NCR but most have stop practicing. At present it is estimated that around 7 to 800 Debt Counsellors are actively helping consumers. Debt Counsellors are reminded that the Annual renewal

NEWS CONTINUED

fee this year is the new exponentially higher fees (as well as branch fee don’t forget that). Debt Counsellors are reminded that their primary office is seen as a ‘branch’ and so they have to pay at least one ‘branch fee’ on top of their renewal fee.

STANDARD BANK AID FOR RAVAGED WESTERN CAPE

Residents of the Cape Town and Garden Route have recently been hit with both poor weather and run away fires respectively. Standard Bank have generously offered to assist consumers under debt review who have been negatively affected by the storms and flooding as well as fires. Debt counsellors or consumers should let Standard Bank debt review department know if they have been affected and they will see how they can render assistance.

DEBT REVIEW AWARDS 2017

The annual Debt Review Award winners for 2017 were announced on Saturday, 10 June 2017 at the Wanderers Club in Gauteng. The results reflect the outcome of an industry wide peer review where members of the industry review their counter parts performance. Representatives from various banks, debt counsellors and credit providers

were present at the gala evening to hear the results and interact with each other midst the sponsor areas. [For more details on who the winners were in each category, please see the Awards article in this month’s issue].

DCASA ANNUAL CONFERENCE IN AUGUST

The Debt Counsellors Association of South Africa will be holding its annual conference at Emperors Palace on the16th of August 2017. Debt Counsellor members from around the country will meet to discuss industry issues and hear presentations from industry experts. DCASA have now opened bookings to non-members and say that all are welcome to attend. Please note that an entrance fee applies. Be sure to follow Debtfree magazine on Twitter and Facebook for live coverage of the event.

TREASURY TALK ABOUT “EXTINGUISHING” DEBTS

At the recent discussion with the Parliamentary Committee on Trade and Industry, by various industry parties, it was the National Treasury who bandied around the term of extinguishing debt (which some members of parliament would like to see done for the poorest of the country). However, at the same

NEWS CONTINUED

time, they were insistent that those who can pay their debts should do so. Credit Providers would rather look at options which see consumers pay back what they have borrowed. Some organizations, such as the Debt Counsellors Association of South Africa, have recommended asking credit providers to make huge concessions in regard to fees and charges on debts and writing off the debt but only after receiving payments for a set amount of time. This would be only for the poorest consumers and would help credit providers recover some of their money. Other consumers would be able to take advantage of currently available solutions like sequestration, debt review and administration.

LEWIS FEND OFF NCR AT TRIBUNAL

Riding high on their recent victory at the National Consumer Tribunal (NCT) against Edcon (Edcon now may have to give billions of Rand back to consumers) the National Credit Regulator began to roll out action against several other credit providers in regard to ‘Club Fees‘. The NCR hope for a series of quick wins on behalf of consumers.

illegal part of the credit agreements with consumers. Credit providers are only allowed to charge certain fees as set out in the National Credit Act and regulations and a ‘club fee’ is not one of them. Charging interest on such a cost would then also be illegal. This is what the NCT found. The NCR soon announced that following an investigation they were taking Mr. Price Group to the NCT and have said they will also ask for a total refund of fees to consumers (since 2007 when the NCA came into effect) and want to ask for a big fine. Lewis, who have been the target of a lot of NCR attention over the last while, were also on the list of club fee charging credit providers and the NCR also took them to the National Consumer Tribunal (NCT) asking for fines and money to be returned. The matter was soon heard and in a surprise ruling that went contrary to the Edcon findings, the NCT ruled that these Lewis club fees were different to the Edcon club fees. They found that these fees did not form part of any credit agreement and thus did not break the law and do not need to be repaid.

The NCR also raised concerns about In the Edcon matter the Tribunal the warranty charges from Lewis that found that their Club Fee formed an run concurrent with manufacturer’s

NEWS CONTINUED

warranties (so, double cover that can only be claimed on once). The NCR had included this matter in their application to the NCT about club fees that was thrown out and they are unhappy with the result. They, like Edcon, are now taking the matter on appeal.

RATINGS AGENCIES DISAGREE ON OUTLOOK

The big 3 global ratings agencies have weighed in on SAs Long Term Foreign and Local Currency rating. The recent drop to Junk status in regard to SA’s Sovereign Debt has been widely publicized. While Standard & Poor’s and Fitch held off on lowering their ratings any further (lower than Junk you ask?), Moody’s finally came to the Junk party and have now rated SA credit rating as just one step up from the feared ‘noninvestment’ grade. Though all 3 now agree that SA’s Foreign Currency Rating is Junk or almost junk, what they differ on is their outlook for the future. S&P and Fitch view the outlook as ‘stable’ but Moody’s are not as positive. This may be due to the fact that their ratings have been slightly better than the other two agencies in the past. Moody’s have given a ‘negative’ outlook rating which bodes poorly for their future ratings. Moody’s ratings

given to the country were then also confirmed for 5 of SA’s bigger banks and a number of other financial institutions (like the Development Bank of Southern Africa and the Industrial Development Corporation of South Africa). The banks have a lot of government debt securities as part of their liquid asset requirements and so their credit ratings are closely linked to that of the government. The Rand weathered the most recent ratings upheaval quite well compared to what had been expected and did not drop dramatically against other currencies. This may have somewhat to do with the goings on in other countries more than the ratings themselves. don’t be a twit

http://twitter.com/Debtfree_DIGI

For daily debt counselling news in 3 minutes or less visit www.debtfreedigi.co.za

The Annual Debt Review Awards Gala was held on the 10th of June 2017 at the Wanderers Club in Gauteng. Industry personalities attended and the results of the industry wide peer review for 2017 were announced.

Red C Glam

Carpet mour

The G

Gala

Award for: Significant Contribution to Debt Review Awards

Frans Haupt took the audience back to the first class of Debt Counsellors in 2007

Harry Greene of BASA recaps 10 years in 10 mins

Chris Van Der Straaten reviews 10 years of PDAs

The W Short Term Credit Provider

Bayport Financial Services Vehicle Finance Credit Provider

MFC a division of Nedbank Bank

Capitec Bank

Winners

CREDIT PROVIDERS

Large Non-Bank Credit Provider

Consumer Friend & Retail Credit Provider

Consumer Friend

The W

PDA

Payment Distribution As Reviewed By Credit Providers Customer Service As Reviewed By Credit Providers

Payment Distribution As Reviewed By Debt Counsellors Customer Service As Reviewed By Debt Counsellors

Hyphen PDA

Winners

TOP 5 DCâ&#x20AC;&#x2122;S Boutique Debt Counsellors in alphabetical order: AC Debt Counsellors Credit Matters (Klerksdorp) Debt Mend Mabcor RD Debt Counselling Winner in this category:

AC Debt Counsellors

TOP 5 DCâ&#x20AC;&#x2122;S Large Debt Counsellors in alphabetical order:

The W

Consumer Debt Help Debt Sense Group Debt Therapy Independent Debt Counsellors (INDC) Payplan Solutions Winner in this category:

Consumer Debt Help

Winners

TOP 5 DCâ&#x20AC;&#x2122;S National Debt Counsellors in alphabetical order: Debtbusters Debt Rescue National Debt Advisors (NDA) Octogen Pioneer Debt Solutions Winner in this category:

Debtbusters

debt review school Each month, you should receive a statement from your Payment Distribution Agency(PDA). This statement will show how your installment was split among your various credit providers. The PDA statement shows approximate figures and balances and will not be 100% the same as that calculated by your credit providers. When a debt reflects as nearly paid up on your PDA statement, your Debt Counsellor will check with your credit providers to see what their figures are reflecting, to figure out how much still has to be paid.

donâ&#x20AC;&#x2122;t be a twit

http://twitter.com/Debtfree_DIGI

IN A NUTSHELL

SURVIVING THE RECESSION

COMRADES MARATHON STYLE The Comrades Marathon is a test of human endurance and triumph over adversity. Every year it is amazing to witness the determination and grit of the runners. Roughly 20 000 runners heed the rooster call that declares the beginning of a long journey of approximately 89 kilometers across the most beautiful, but also the most undulated, countryside, defined by forever, crisscrossing hills. If there ever was a metaphor for the challenges of life this is it. The fact that this race takes place in South Africa is not accidental but a testimony to the fighting spirit and resilience of our great nation and our people. Every obstacle encountered does not defeat the human spirit, but instead, spurs it further on to greatness. Just like the Comrades runners, South African’s are facing some steep economic challenges. We are officially in a recession, defined by analysts as two consecutive quarters of decline in a country’s real (inﬂation adjusted) Gross Domestic Product

(GDP)—the value of all goods and services a country produces. An article in the International Monetary Fund (IMF) Finance and Development magazine, by Claessens and Kose, economists from the IMF, confirm, “that typically recessions last for about a year and are characterised by substantial declines in real GDP, investment, imports and industrial production. Recessions are marked by high unemployment, stagnant wages, and a fall in retail sales.”

There are steps that one can take to be better prepared during tough financial times:

Adding fire to the recession woes was the recent Moody’s Rating Agency downgrade of South Africa’s five largest banks and key South African Corporates with a negative outlook in June 2017. As always it is the poor and the heavily indebted that are affected the most. Fuel prices rise, food baskets get more expensive and the rate of debt defaults increases.

PREPARE FOR RETRENCHMENT In the event of a retrenchment, make sure that your CV is up to date and that you are marketable. Stay in touch with your business connections, and know in advance whom you would contact for job opportunities.

For people drowning in too much debt now is the time to start planning in anticipation of the impact that the recession is going to have on your cost of living and lifestyle.

PROTECT YOUR JOB Keeping your job should be the number one priority. Put in the extra effort, work the extra hours and improve your skill set if possible. Those people that are able to hold onto their jobs have a better chance of surviving a recession.

EARN EXTRA MONEY Start thinking of ways to earn extra money, either within your own company or externally. Here are a few ideas: make and sell a product; sell unused household items; start an online business.

PLAN AND SAVE TOWARDS AN EMERGENCY FUND Ideally one should have at least six months income cover. If not are there assets you could sell, should you need to? If both partners work in a household then three to four months’ cover is a minimum. Alternatively, start saving towards an emergency fund.

APPLY FOR DEBT COUNSELLING If your expenses already outweigh your income the wisest thing to do is apply for Debt Review. The Debt Review process protects you from losing valuable assets like your home and car whilst restructuring your debt so that your repayment plan is affordable. DON’T PANIC It doesn’t help to panic in tough times as this often leads to poor decisions. The key to approaching any difficult situation is to plan ahead, set goals and if necessary get help from the experts, like Debt Counsellors.

REDUCE YOUR EXPENCES This seems obvious but people are often stuck in habits that are very hard to break. Create a list of all your expenses and look at ways to minimise costs, for example, avoid expensive brands and outlets, downgrade entertainment contracts like DSTV, save on water and Tough times require grit and electricity costs and keep credit card perseverance, something which expenses to a minimum. Comrades runners have plenty of as do South African’s in general.

IN A NUTSHELL is brought you by the DCM Business Partnership Programme™, designed to support debt counsellors and consumers during the debt review process, in collaboration with the National Payment Distribution Agency (NPDA). For help, contact the NPDA on 0861 628 628. If you have suggestions for topics that you would like covered in future, please email info@dcmgroup.co.za Debt Review Awards Winner 2014 and 2015: NPDA: Payment Distribution; Client & Customer Service; Industry Support & Engagement Care Premier: Debt Counselling Software

PROFESSIONAL DEBT COUNSELLING ATTORNEYS

T E L : 021 872 1968 1 1 MARKET STRE ET, PA ARL w w w.ste y nco etze e.co.za

THE FIRST 90 DAYS

For most businesses, the hardest part is finding a client and signing them up. While it is no easier for Debt Counsellors to do this than anyone else, once we have a client the work is both complex and challenging and that is just the administrative processes. Nobody can dispute that Debt Review is a tough business to be in. Whatever we as Debt Counsellorâ&#x20AC;&#x2122;s do we are ultimately judged on the ratio of customers that we sign up that eventually get a Clearance Certificate. Indeed, the Debt Counselling business model is dependent on good success rates for long term sustainability; this especially in an environment where Professional Fees have not increased for eight years.

What is the key to navigating a Consumer right to the end of the Program? Any teacher will tell you that no matter what he or she does in a particular year, if the foundations that were laid in previous years were not sound no amount of effort will produce good results. In Debt Counselling, it is the same. It is absolutely vital that the Debt Counsellor makes the effort in the first ninety days to help his customer to change their behaviour and learn to live within his affordability.

This is done by means of communicating the importance of making payments to the customer frequently and in a variety of ways. These ways can include telephone calls, printed or emailed correspondence, SMS or MMS and even Social Media. The more times that Debt Counsellors touch their clients the in the early days the better the success rate of those clients. The trick really is reminding the Consumer that his Debt Review is a last chance, that it is essential to pay, that only through making sustained payments will his situation improve and so on. Maximus makes rich communication to consumers possible through its strong communications platform built right into the software. Debt Counsellors can send messages to individual or groups of Consumers with a few clicks. If you want to know more about how Maximus can help make your practice better, please give us a ring or visit us at www.dcmax.co.za Contact Maximus on 011 451 0041

Die Republiek van

SKYT AFRICA Haai daar al julle pragtige mense. Ek was in die bevooregde posisie om na die jaarlikse DEBT REVIEW AWARDS genooi te word. Dit word nie verniet n rooitapyt geleentheid genoem nie. Almal was deftig aangetrek vir die skouspel en net n paar manel of pikkewynpakke het gekort. Hierdie is immers die eindstreep vir almal wat genomineer was vir n gesogte toekenning ter erkenning vir hul bydrae in hul onderskeie gebiede die afgelope jaar. Die mededinging is sterk en net die bestes word beloon. Die wenners word in die tydskrif wye dekking gegee so ek gaan dit nie hier doen nie. Wie ek egter wil vermeld is Zak King en sy span, dit is nie maklik om so n geleentheid so stylvol aan te bied nie en dit was uit die boonste rakke. Natuurlik was daar ook vermelding en baie verdienstelik aan mense, gewone mense

soos ek en jy, wat deur die loop van die jaar total skuldvry verklaar is. Dit is geensins n maklike pad om te loop en vas te byt met die droom dat die skuldwolf vir eens en vir altyd die pad gevat het nie. Dit is immers waaroor so n geleentheid gaan, almal betrokke het dieselfde doelstelling en dit is om vir mense die geleentheid te skep om voort te gaan met hul lewens sonder die stress en bekommernisse van n oormaat van skuld nie en dit is vir julle wat die industrie baklei en saamwerk. So vir diegene wat nog nie daardie vryheid het nie, moenie tou opgooi nie, dit is nie n maklike pad nie maar die uiteindelike

resultaat is soos hulle se priceless! Die verligting op hierdie vasbyters se gesigte na al die opofferinge laat n mens nederig voel en sommer n traan pik. VASBYT!

Groete van die Republiek van Skyt Afrika. 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

DEBT COUNSELLORS ASSOCIATIONS ANNOUNCEMENT BOARD

Regional Meetings Western Cape: KZN: Gauteng: Free State: Eastern Cape:

25th July 21st July 18th July 14th July 21st July

Annual Conference: 16th August

Litecoin & Bitcoin are just a few cryptocurrencies that you can invest in immediately via a secure investment trading company. Here is the link to get started http://www.avatrade.com/?tag=44107.

Bookings now open to all

www.dcasa.co.za

Our main focus in 2017 is on ensuring that all BDCF members comply with all legislation, regulations and conditions of registration. We have already strengthened our communication channels this year and will look to continue to do so. We are excited that special projects are being launched for members and their clients in areas such as incapacitation or death of DCs,usage of PDAs by consumers, as well as fees.

www.newera.org.za

Congratulations to all the Debt Review Awards winners To join: bernidene@csdebtcounselling.co.za

Well done to all the Debt Review Awards Winners.

www.bdcf.co.za

www.allprodc.org

JUNE

NEWSLETTER Regional Meetings There will be a local AllProDC meeting in the Western Cape during July 2017, please email bernidene@csdebtcounselling.co.za for more details on the when and where. We will also be hosting some online meetings in other regions so if you are elsewhere in the country be sure to check in and find those date on facebook or email bernidene@csdebtcounselling. co.za for details. Debt Review Awards Congratulations to all the winners in this yearsâ&#x20AC;&#x2122; Debt Review Awards. The organisers asked us to let our members know that our participation in the peer review assisted greatly. Well done to all the winners! Facebook We will be making some changes to our Facebook page during July to inform consumers of what they should expect from a professional Debt Counsellor. Our membersâ&#x20AC;&#x2122; only Facebook page will continue to discuss topics such as DC fees, NCA Amendments and other issues. Credit Provider Interactions AllProDC will be meeting with various credit providers over the next few weeks, if members have any specific issues they would like raised with BASA members, they can email information and examples to bernidene@csdebtcounselling.co.za

www.allprodc.org

FACEBOOK: www.facebook.com/AllProDC / TWITTER: www.twitter.com/AllProDC

JOBS

APPLY FOR YOUR DREAM JOB NOW Join the Meerkat Team An exciting place to work! Meerkat are looking for:

Frontline Sales Agents to join our energetic team.

This is a great opportunity to become part of a fast-paced, high growth and professional debt counselling environment. We offer a consistent hot lead flow as well as an aggressive remuneration model. If you are looking for a company with an entrepreneurial spirit at its heart, and are keen to join a dynamic, hardworking but fun team contact us. We would love to hear from you! Mail us on info@meerkat.co.za www.meerkat.co.za/careers/

MyMeerkat (PTY) Ltd. Meerkat is an authorised financial services provider (FSP 46535)

Credit Bureau Association appoints new Executive Manager The Credit Bureau Association (CBA) has appointed a new executive manager, Alison Magrath. “Alison is a stalwart of the credit information industry,” says Mike Reilly, chairperson of the CBA. “We welcome Alison to the CBA and look forward to working together.”The CBA is a voluntary association for credit bureaus that promotes fair and equitable services in the credit information space. Alison’s appointment is effective as of the 1st of June 2017. She has a wealth of applicable experience, both in the legal field and in the credit information sphere. Most recently, she has been running her own consultancy, Legalbizconsultants, working with the National Credit Regulator (NCR) in the role of the credit bureau compliance manager. There she worked on mid- and long-term strategy, drafting circulars and guidelines, and amending legislation with a view to protecting consumer credit information as managed by bureaus. Prior to that, Alison worked at TransUnion Africa as the group risk executive (vicepresident, legal & regulatory); in Dubai within the banking and finance department of a prominent law firm in the United Arab

Emirates; and as group legal counsel for a southern African banking group; among other relevant positions. She was admitted as an advocate of the Supreme Court of South Africa in 1990. The CBA works to promote access to personal credit reports, and educate consumers on responsible credit use. “Checking your report is a good way to assess the health of your credit use and management thereof. From your report you can see how specific credit accounts are affecting your credit score, and you can spot any potential identity fraud,” says Alison. “We want to see the number of free reports issued going up consistently, because it is a sign that people are taking responsibility for their own credit situations,” added Alison. Persistent myths about credit reports continue to be an issue in South Africa. Both anecdotal and survey data shows that many people still believe that being “listed” by a credit bureau is a bad thing. In truth, anyone who uses credit has a credit profile, and this profile contains information on both “good” and “bad” credit management. This includes whether you pay your accounts on time, in full, partially or late.

For a list of all credit bureaus and their contact details, visit www.cba.co.za

DEBT COUNSELLING COMMUNITY SUPPORT

ADOPT A FAMILY Due to generous sponsorship by Supporters such as DC Partner PDA, our “Adopt a Family” DEBT COUNSELLING SUPPORT project has been able to begin toCOMMUNITY assist a number of new families. This month, we were able to cover one consumer’s medical bills, another family’s outstanding school fees, as well as, assisting another family with municipal bills and transport costs.

DCCS want to say a huge

THANK YOU

to all of our generous supporters including Nedbank who are currently running an internal food drive, for later in the year, on behalf of this project.

DEBT REVIEW AWARDS DCCS would like to thank the organisers of the Debt Review Awards for allowing us to share information about our various projects at the Gala Evening this year.

Remember to contact admin@dccsupport.co.za to arrange payment or to offer support for our upcoming projects.

Check out our website for pictures, stories and more and as always if you would like to get involved in one of our projects (like our back to school project for Jan) then we ask that you simply email admin@dccsupport.co.za

Jothie Bechoo ATTORNEYS & DEBT COUNSELOR

Taking care of all your legal needs

Suite 7 Gladstone Court 103 Smiso Nkwanyana [Goble] Road Morningside Durban Tel: 031 303 1004 Mobile: 076 835 2810 Email: jbechoo@jb-attorneys.co.za

LAUNCH ANNOUNCEMENT - I-DOCS Dear Debt Counsellor, We are exhilarated to announce our alliance with i-DOCS and the integration of this innovative program with Finwise. DC Partner continues to invest in the development of our software program, and we trust i-DOCS will certainly change the way of debt counsellors workflow positively, and ensure capturing on a higher level, efficiently and with more accuracy. I-DOCS will lead to better productivity and quicker turnaround times! Here are a few of the many fantastic functions and benefits of i-DOCS • i-DOCS intelligent tools reduces manual capturing time significantly. • Creditor fields are automatically populated with all the details pulled from ITC (Compuscan). • Quick return of documents from consumer - Electronically sends all documents to the applicant/consumer, who can sign, and return these via their smart phone/ tablet with a touch of a button. • Electronically sends all documents to the applicant, who can sign and return these via their smart e-mail (can sign documents with computer mouse). • Automatically complete debit order cancelation document - a generic and specific document for accepted by creditors. • Debit order mandate for debt review is signed digitally. • i-DOCS allows for consumer to send any supplementary information via mobile phone (example – payslip/bank statements forming part of the form 16 pack & photos etc.) • Generates 5 x proposals options for debt counsellor to consider.

Look out for our email updates and communication about this new development and training! For any further information please contact: gerda@dcpartner.co.za

FINWISE - INNOVATIVE DEBT MANAGEMENT PROGRAM

No monthly program fees! Accessible on PC or Desktop

• • • • •

Excellent audit trail Workflow management Easy to navigate functions Quick data capturing DCRS and standard proposals accommodated.

‘’ I was pleasantly surprised by our experience and changeover to Finwise. The new system is intuitive and easy to understand.‘’ Debt Counsellor Eastern Cape ‘’ I’ve found the Finwise system to be very useful. I’m new in the debt counselling field, I managed to find my way around the system as it is very user-friendly. The training manuals provided are also helpful and informative.’’ Debt Counsellor Gauteng

Head Office 59 Victoria Street, George Telephone 044 873 4530 Fax 086 246 2450

www.dcpartner.co.za

SERVICE D

CLICK THE C

DEBT COUNSELLORS

SUPPORT SERVICES

TRAINING

FINANCIAL

FINANCIAL PLANNING