Debtfree Magazine March 2018 by Debtfree Magazine

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

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DEBT

REVIEW TO GET A

LOAN March 2018 www.debtfreedigi.co.za

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A positive attitude can really help when times are tough. A positive attitude can make you focus on the good in your life (or a situation) and minimize the negative. Although the facts don’t change, the way we perceive and experience them leaves us feeling optimistic.

Rand has been doing well against other currencies.

That is not to say that the VAT hike and increase in fuel costs are not going to put a serious damper on everyone’s enjoyment in the next few weeks and months but most South Africans have been swept up by a background sense of ‘change is possible’, ‘Things can improve’, and that is reflecting in a number of A big benefit to entering debt review, positive ways across the country. is when the “collections calls” stop and finally you have a game plan That doesn’t mean that things are for how to settle your debts. This not still complicated. Another bank leaves you feeling a lot more positive is in trouble and this just goes to and that attitude spins off into other show that mistakes can lead to parts of your life, like your marriage disaster in an industry where Billions and work. You just feel better, more and Trillions of Rand are involved. Legislative and political changes confident. can quickly shift the playing field Consumer confidence is on the rise and it can be hard to keep up. as the honeymoon glow of political leadership change and reorganizing continues. Stories about the Guptas are now met with smiles rather than frowns. It seems that even the ratings agencies are impressed and the

When the NCR recently issued new guidelines on the fees they think should be charged for Debt Review, it was exciting to most Debt Counsellors. They too felt excited

and optimistic. But change is hard and as the fee change looms we ask some of the questions that many have been trying to wrap their heads around. We also consider one of the many reasons why consumers may decide to leave debt review and how it can hurt them. If you have been thinking about dropping out of the process, then be sure to think long and hard and educate yourself on the consequences before making a decision. Easter time sees many consumers drop out of debt review due to bad decisions. Please be careful that you donâ&#x20AC;&#x2122;t end up making a big mistake, it could have horrible financial ramifications. Be sure to make your regular debt review repayment, as you look ahead to the future with the confidence that soon, not long from now, you will make your very last repayment, and finally be debt free.Perhaps even being debt free.

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C O N T E N T S

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LEAVING DEBT REVIEW TO GET A LOAN It is not uncommon for Debt Counsellors to be asked by consumers how they can leave debt review. There is nothing wrong with the idea, since it is the goal of every Debt Counsellor to get all their clients out of the process and back on their feet financially. It is however a danger when consumers want to leave debt review for the wrong reasons, and at the wrong time.

One of the most common â&#x20AC;&#x153;wrongâ&#x20AC;? reasons a consumer may want to leave the process prematurely is when they suddenly want to get access to credit again. They seem to forget, that it was often the misuse of credit that got them into a financial mess in the first place. For one reason or another, a consumer might want access to a loan to pay for something. They may have been called by someone offering a loan or received an sms or email offering a loan. When they then respond they are told that because of their debt review status, which shows on their credit bureau report, they cannot get the loan but if they leave debt review, then they can apply. Since you are being offered credit again, should you consider leaving debt review? Why might it be a bad idea to leave debt review if credit providers are offering you credit?

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IMPULSIVE Debt Review is a long process. Most plans take between 3 to 6 years before the consumer is back on their feet financially. Paying debt down over time can be a slow and boring process. Gaining access to credit again however is an exciting prospect. In the mind of the consumer it means life can go back to the good times of spending more than you earn. The bad memories of all the stress and collections calls and sleepless nights are downplayed. The request to leave debt review is often not thought through and is more impulsive than educated or considered.

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GULLIBLE Just because someone sends you (and a few hundred thousand other people) an sms or gives you a call from a call centre, does not mean that you have been specially chosen based on your current financial situation. There is absolutely no guarantee that you will actually qualify for the credit you have been offered. Sales agents will try to motivate you to take on credit since they earn commission on sales. They may not know anything much about debt review or the danger that they might be putting you in by suggesting that if you left debt review you could apply. You may stop paying for your debt review and then not get the loan anyway.

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QUALIFYING FOR NEW CREDIT A consumer is only allowed to get credit if they can afford to pay all their usual monthly expenses and all their other normal debt obligations and still have money left over at the end of the month. If you cannot repay all your original debt repayment amounts (not the adjusted debt review ones) and have some money left over for the new credit then you will not qualify for a new loan. If you could cover your costs and your original debt repayments then you wouldnâ&#x20AC;&#x2122;t be in debt review in the first place.

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GREED Using money you don’t have to pay for things is often based on greed. The desire for something not earned. Often consumers want to apply for credit to buy things that in truth, are not vital. They just want to go back to the ‘good old days’ of over-spending. In other cases, there is a genuine need, like a sudden medical emergency. Here too, wrong thinking can cause problems and greed can rear its ugly head. Rather than sell things they already have, or give up certain things they usually have each month (or for a few months) consumers fall back into the bad habit of trying to get money they don’t have from a credit provider.

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NOT STICKING TO YOUR BUDGET Most Debt Counsellors will work into a consumerâ&#x20AC;&#x2122;s budget, funds which need to be set aside each month towards annual expenses (like school fees and car services etc). When consumers stick to the budget these funds build up over time and can provide a cushion in the face of a sudden emergency. Those costs will still need to be dealt with in the future, but it helps alleviate sudden crisis. Many consumers however, foolishly spend every available cent every month, and forget to save towards these costs. This causes them trouble down the line and they may think that a new loan is the only way to cover such costs.

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LACK OF UNDERSTANDING Debt review is an involved legal process governed by the law and the courts. It is not a casual commitment, but an involved process with far reaching financial ramifications. Many think leaving debt review can be done swiftly. This is not true. It is an involved process which needs to be done carefully so that their financial future is not jeopardized. Those who just stop paying thinking this will make the debt review go away, do not realize that they could end up in debt review, but without the services of a debt counsellor, making it harder than ever to leave the process properly one day.

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DANGEROUS Leaving debt review (sometimes consumers just stop paying thinking that is the easiest way) allows credit providers to start new legal collections processes and revert to their original agreements. This means that the amount you owe will not be the same as what was showing while you were under debt review but rather much, much more. The credit providers will hand matters over to debt collectors who will demand large amounts paid suddenly to prevent legal action. When this happens getting a small loan will be the last thing on your mind and you may end up losing your assets and being totally stressed.

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DIG DIG DIG Often debt is described as a hole that you have dug for yourself. More credit is like digging deeper. Each time you take on more credit the hole gets deeper! Everyone knows you cannot dig your way out of a hole, you need to climb. You need to make your way back to level ground. Donâ&#x20AC;&#x2122;t let someone try sell you on the idea that suddenly you qualify for more credit while you are already struggling to make your monthly debt review repayment. If you are struggling, then why not make an appointment with your debt counsellor and discuss your monthly budgeting with them again? Budgeting is something many people struggle with and something that may need to be adjusted as time goes by. Get the expert help that you pay aftercare fees for each month. Your Debt Counsellor may have some good insights or hard truths for you to consider.

KIM ARMFIELD

AND ASSOCIATES

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If you are lured into trying to leave debt review midway through the process it can really wreck your financial future, and only you will be to blame for ruining your chances of being totally debt free. Debt review should not just be about getting out of debt so you can go back to old habits. It should be about starting the process of making wealth. Sticking to your budget throughout the process and learning that not everything can be solved overnight by taking on more credit is an important part of debt review. Not rushing impulsively into bad, uneducated decisions without consulting with your Counsellor is a sure way to throw your life back into chaos. Be very careful of trying to leave debt review just because it seems the fastest and easiest course. It may seem that way but you could end up even worse off than before you began your debt review all because of wanting credit that you canâ&#x20AC;&#x2122;t actually get anyway. It is best to make full use of your debt review, not only to save money on all those fees and interest concessions from your friendly credit providers but also to adjust your lifestyle and way of thinking about money. Debt review will really help you if you work with your Debt Counsellor and pay off your debts so that you can leave debt review when the time is right.

NEWS NEW BANKS COMING SOON 2018 is going to be the year of new banks. Several new provisional licenses have been awarded recently and new banks like Tyme Digital, Discovery Bank and Bank Zero are set to enter the market shortly. The Post Bank (post office bank) will finally also be operating under license.

MOODY’S CHANGE R ATING OUTLOOK The last few years have seen SA’s investment and debt ratings drop lower and lower as companies like Fitch and S&P and Moody’s have started to warn people off investing in SA. Of all the agencies Moody’s has been the most optimistic but even they had said SA looks set for outright “junk” status this year. That was before a bunch of political leadership changes, a more realistic budget and changes to things like VAT and a lot of government housekeeping. As a result in their March announcement Moody’s have said they are keeping SA rated as just above junk and they think that will now hold for a while. Saying the Baa3 rating outlook is now stable rather than negative.

VBS MUTUAL UNDER CUR ATORSHIP

COURT SAYS DTI & NCR REQUIREMENTS ARE TOO HIGH

VBS Mutual Bank got a lot of attention when they loaned the former President a lot of money to pay for Nkandla (some say more than he could afford to repay). VBS is in trouble for breaking the law and taking deposits from various municipalities. Now the money needs to go back and that potentially means the bank is cash strapped. As a result the management are all in trouble and the board have been replaced with a curator by SARB. Things may now go one of two ways. The banks days could be numbered or things might get turned around for the best under the temporary leadership of the curator. Either way a bunch of management folk are all in serious trouble.

When applying for credit the amended NCA and regulations require that people provide salary slips to show what they earn. This helps protect credit providers from offering reckless credit. Some consumers however do not have salary slips. This lead Mr Price, Truworths and Foschini into taking the matter to the Western Cape High Court. The court ruled in favour of the Credit Providers saying that it was unreasonable and impractical to keep some people from getting access to credit simply because they did not have a bank account or salary slips. The DTI & NCR are now looking into appealing the ruling as it says nothing about consumers who do have these.

CONSUMER RIGHTS AWARENESS MONTH Were you aware that March is Consumer rights Awareness Month? If not, it seems the campaign failed. If so maybe you were one of the many consumers who interacted with organizations like the Consumer Financial Education Foundation (CONFEF) who were out during March promoting consumer rights. Back in 1962 US President JFK sent a message to the US congress about consumer rights and so the 15th of March became World Consumer Rights Day. If you didnâ&#x20AC;&#x2122;t know before, you do now and you have rights under the Consumer Protection Act and National Credit Act. Insist on them.

AMENDING THE NCA Hearings into the constitutionality of amending the National Credit Act to include a plan for Debt Intervention were held during March. The hearings, held at Parliament in Cape Town, allowed various parties to weigh in on proposed (and slightly adjusted) plans to change the NCA. Plans were mentioned for the National Credit Regulator to take on the role of facilitating the debt intervention plan along with the National Consumer Tribunal. In other news the NCR seem to have said they do not have capacity to handle reckless credit complaints and they would prefer it if the matters are simply sent to court.

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VAT Everyone got something of a nasty surprise when government announced that VAT was increasing for the first time in 25 years. The increase of 1% up from 14% up to 15% starts in April 2018 and will affect debt review as well. It may be necessary for you to adjust your payment slightly to offset the increase. If you make use of service providers who charge VAT (such as your bank or a PDA and your Debt Counsellor) then this can slightly reduce the amount of money that will go to your credit providers. The change is not going to immediately make a huge difference since we are only talking about 1% on a few fees and charges but over time they may begin to add up. Eg. If a consumer has many Credit Providers involved in their debt review and keeps paying as they are now then you could have situations where fees on the consumers bank EFT increase; the Debt Counsellor’s aftercare fee increases; the PDA or payment gateways fee increases. Even if this results in only R5 less to each credit provider it begins to add up to R60 a year. By the 2nd year that’s an amount of R120 the consumer is behind on the planned payments and the credit provider may then object since the amount falls out of their “allowance range” for discrepancies. Because credit providers add interest on accounts throughout the year it

15%

also means that if the plan is new then after several years the calculations of how much is still outstanding will look very different to the plan in the court documents. We are admittedly talking about small amounts that are not going to cause immediate issues and the industry will no doubt make adjustments to cope as time goes by but it is good to keep it in mind.

DONâ&#x20AC;&#x2122;T PANIC but keep it in mind

*Please note we are simplifying the entire thing for the sake of brevity and clarity.

THE TIMING OF THE NEW FEES As of April 1st 2018, a new fee structure will be adopted by many Debt Counsellors. This is because the NCR has made a new suggestion* on what they feel should be charged for debt counselling. Though the fees have not changed dramatically, there have been some changes not only to the amounts which can be charged (for example, a new R300 fee for admin work) but also when these amounts should be charged. To date, fees were simply taken at the end of the first and second months and then a small monthly aftercare fee along the way until the debt restructuring ends.

â&#x20AC;&#x153;

The new Debt Counselling fees allows for aftercare fees to remain at 5% throughout the process

â&#x20AC;?

THE TIMING OF THE NEW FEES

WHEN CAN FEES BE CHARGED? In an effort to get Debt Counsellors to be quick about offering consumers services, the NCR have changed when they suggest fees are taken. They have said that most fees can only be taken ‘after’ a set list of actions take place. Let’s look at some of the new changes and why they might be a bit confusing and even difficult to implement.

THE TIMING OF THE NEW FEES

APPLICATION FEES Though many Debt Counsellors have in the past decided just not to charge this fee, the timing here remains the same. Even though the NCR has made many Debt Counsellors sign T&C that they wonâ&#x20AC;&#x2122;t take money directly from the consumer, the Act and the new fee guideline says this fee is payable upfront. No change.

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THE TIMING OF THE NEW FEES

ADMINISTR ATION FEE (NEW FEE) The NCR are happy for a Debt Counsellor to be assisted by people who perform administrative tasks and have now added an administration fee to their guideline. Once again the timing of this payment is upfront. Most Debt Counsellors have found that consumers do not have funds available or do not yet trust them enough to part with money up front. Will there be problems if these fees are added later down the line?

THE TIMING OF THE NEW FEES

DETERMINATION FEE Applying for debt counselling does not mean you will actually qualify. First a review of your debt needs to be done, and then if you qualify, proposals might be sent to credit providers and documents drafted for the courts or National Consumer Tribunal (NCT). The NCR guideline now says that a Debt Counsellor can only charge fees in the first month (over and above the R350) if they have submitted proposals to credit providers. If they do not (and they have a long time in which to do so) then the consumer would pay no fees at the end of the first month and credit providers may not get any payments either.

The idea here is to try drive Debt Counsellors to submit proposals to credit providers swiftly in order to receive this fee. The snag is, that there is now a lot of work and waiting that needs to happen before a Debt Counsellor can send out proposals. One of the longest delays will relate to waiting on credit providers to send accurate information on how much is owed. If they delay too long, then the Debt Counsellor can just use info from the consumer (and credit provider) but these will probably have to be reworked later then. Some credit providers are faster than others, but proposals are basically sent when the last of the information comes in to be as accurate as possible. This means that even if some are fast, the timing on when this fee could be charged is based on the slowest responders or 2 weeks having lapsed, whichever comes first. Another anticipated delay will relate to reckless lending investigations. Since the proposals fee and reckless lending fee are suggested for different months, it seems to indicate that the proposals can be made without yet knowing if something is reckless or not.

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THE TIMING OF THE NEW FEES

RECKLESS LENDING (NEW FEE) It is expected that most Debt Counsellors will now begin charging this new fee simply because they can. The amount is not dependant on the Debt Counsellor finding anything bad. Just dependent on them investigating and submitting an affidavit. Currently, there is no set of rules on how such an investigation needs to be conducted and each Counsellor can have their own process, the results (or lack thereof) of which is then shared with the court. This is similar to how, in the past, credit providers could make up their own minds about how to do an affordability assessment. The fee is suggested to be taken in month two.

If a thorough investigation is done, the original signed and initialed contract documents for each account will be needed. Credit Providers often find this difficult to supply (because they have disappeared, show some mistake on the part of the credit provider or in storage somewhere). This results in long delays in obtaining this information. Many Debt Counsellors in the past have even had to go to court to try compel this information to be supplied. One snag here is that the affidavit of the outcome needs to be submitted to an attorney. If no attorney is used, can the amount be charged? The guideline does not say the attorney needs to be involved in the debt review matter (but it is implied by the context). If a consumer ends up paying less than the full R1500 towards their debt each month, then would this amount be recovered over several months? Could the Debt Counsellor get into trouble for charging this deferred amount later?

THE TIMING OF THE NEW FEES

AFTER CARE FEES

After Care fees are now payable only from the 3rd month of the process (‘after Month 2’) as opposed to the second month, as most currently charge, and can only be charged if aftercare services are rendered.

THE TIMING OF THE NEW FEES

NCT SUBMISSION FEE Some matters can be sent to the National Consumer Tribunal and when that is the case, a reduced fee of R500 applies (which now specifically does not include the application fee – which is for the consumer’s bill according to the NCT but has to be paid via the DC). This fee is also due in month 2. It appears as if the NCR are trying to separate Attorneys fees and NCT fees (where an attorney can represent a consumer if they wish). Under the Attorney’s fees section it mentions if there are no objections then perhaps those fees would not be charged (unless the matter goes to court). It might be good that this fee can only be charged in month 2 since it normally takes a long time to get everyone to agree to a consensual repayment plan for consumers who qualify to use the NCT. It seems that the NCR are trying to reduce the incentive for Debt Counsellors to get everyone to agree to a plan and this may drive a massive increase in court matters providing the NCT with less work.

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THE TIMING OF THE NEW FEES

ATTORNEY FEE There is an interesting twist that the guideline specifically states that this fee is paid to the Attorney (no mention of the Debt Counsellor or their firm). The NCR have mentioned that they cannot tell attorneys what to charge but they would still like to see them charge something similar to what the individual pays towards their debt each month. Meaning that legal fees would quickly be paid in a single month. For smaller repayments this is unlikely since the workload remains similar, no matter how many accounts are involved. As is currently the case, the amount may take time to pay off.

One of the most difficult changes is also introduced. The NCR now only want consumers to pay Attorneys â&#x20AC;&#x2DC;afterâ&#x20AC;&#x2122; the Attorneys have drafted court documents and gone to court. At present, legal fees are taken in the second month. This now changes. The problem is that some courts take longer than others. One court in the Western Cape was famous for always moving these court cases to the end of the court roll. Another court in the Eastern Cape supposedly limits the number of debt review cases it hears each week to 3 matters (out of possibly hundreds). Attorneys are not famous for taking payments after their cases (since they might lose and their clients may not want to pay). Since no specific month is given for these fees, it will be hard for Debt Counsellors to work these into the repayment proposal upfront. Would a credit provider mind if after 6 months suddenly no payments are received because the court work finally happened (or the attorney went to court for the first time on the matter)? Will they mind if it interrupts or reduces payments over 2 or more months? Probably. Since the PDAs canâ&#x20AC;&#x2122;t hold fees for consumers (they have to pay within a certain amount of time from getting the payment from the consumer) it might now be necessary for the consumer to hold onto these fees (and not spend them), that seems like a risky idea!

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Each year the Debt Review industry engage in a industry wide peer review of those they work with regularly. The results are audited and compiled and announced on the evening of the Debt Review Awards Gala. This year the Gala is happening in Cape Town on the 2nd of June. During the Peer Review, participants are asked to sign up to be eligible for an award. Those who do not sign up may be evaluated but would not be in line for an award (even if they received the highest ratings). The NCR database of registrants is used as the original source of possible candidates. The Peer Review is conducted online via survey software and all industry role players who are registered with the NCR can participate. There are thousands of NCR registrants both credit providers and Debt Counsellors (as well as 3 PDAs). Registrants are invited to participate via industry associations, the Debtfree

Magazine, Industry Forums and online groups, as well as, via emails both from the organizers and PDAs. Each participant is asked to evaluate some of their peers on the other side of the industry (eg. Banks would review Debt Counsellors not other banks). Because there are such a large number of registrants, the workload in the early stages of the process can be shared among the crowd. As the process progresses, some companies and individuals begin to get more â&#x20AC;&#x2DC;pointsâ&#x20AC;&#x2122; in the review than others by getting rated higher than others in their category. These are then moved into a higher tier to be considered by participants again. This process is repeated as needed until a clear group of top 10 possible winners in each category are identified. Some groups have a smaller pool of candidates. For example, there are less than 30 banks in SA or only a few organizations who offer vehicle finance. This speeds the process in these categories. Ultimately, participants from the other side of the industry get to evaluate the top 10 candidates and a top 5 and ultimate winner are identified based on their ratings averaged across the participants. The results are then announced at the Awards gala in the various categories.

Winner Top 5 Scoring Companies Top 10 Scoring possible candidates Short list of possible candidates who are registered All NCR registered possible candidates are eligible to be considered and ultimately win

SECURE DISTRIBUTION SECURE DISTRIBUTION DEBT REVIEW FUNDS DC DEBT Partner REVIEW takes pride FUNDS in providing accurate and timely distributions. DC Partner takes pride in providing Distributions are done strictly according to accurate and plan timely distributions. the distribution provided by the debt counsellor. Distributions are done strictly according

to the distribution plan provided by the debt counsellor.

All professionals have professional indemnity if the unforeseen happens. Do you as a professional Debt Counselor have professional indemnity as stipulated by the ethical code?

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Die Republiek van

SKYT AFRICA Hi Almal, Een ding wat van kindsbeen in ons koppe ingeprent is, is n vervaldatum. Elke liewe produk in ons koskaste en vries of yskaste het n vervaldatum. Wanneer inkopies gedoen word is die eerste waarna ons kyk die prys en tweedens die vervaldatum, ons sal immers nie melk koop wat reeds die volgende dag verval nie. N vervaldatum gee vir ons n aanduiding vir welke periode ons daardie items kan gebruik alvorens dit bederf of selfs ongesond kan wees. Nou wat het die met skuld uit te waai? Onlangs het iemand n kort praatjie gelewer oor vervaldatums in ons lewe en ek het dit insiggewend gevind. Elke krisis of probleem in ons lewe het n vervaldatum, niks duur vir ewig nie.Dus kan n vervaldatum ook positief wees in ons daaglikse handelinge. Baie van die swaarmoedigheid wat ons oorval is die feit dat ons nie n einde aan n probleem kan sien nie en ons voel hulpeloos en uitgelewer, hierdie het tot gevolg dat daar maklik handdoek ingegooi word want daar is nie n vervaldatum nie.

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Besef dat jou finansiĂŤle probleme wel n vervaldatum het, dit is nie n lewenslange probleem nie. Besef ook dat enige addisionele betaling, hoe gering ookal, wat jy tot jou skuld maak die vervaldatum nader bring. Poog om deurentyd hierdie vervaldatum te vervroeg, niks is meer bevredigend om te sien hoe n teiken of doelstelling al hoe nader beweeg nie. Mag die vervaldatum van jou finansiĂŤle probleme vinnig aanbreek!

Groete en gaan julle goed!

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

HELPING VULNER ABLE CONSUMERS Do you have Debt Review clients who you are worried about? Have you seen the cost of living shoot up beyond your clients increase in income? Are you worried they may fall out of the process without a little help? If you know of vulnerable but loyally paying debt review consumers who could benefit from some assistance please let us know. Are you thinking of ways to help debt review consumers? Letâ&#x20AC;&#x2122;s work together to ensure the right consumers get the right help and no funds are wasted. Become a DCCS Supporter

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The National Debt Counselling

Regional Meetings Free State 11 May 2018 Gauteng 15 May 2018 KZN 18 May 2018 WCape 22 May 2018

Association (est. April â&#x20AC;&#x2DC;17) members collectively serve about 30-35% of the active consumer market. NDCA has contributed to CIF on topics such as professionalization of the industry, increased use of DCRS,

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and DC fees. NDCA also presented to Parliamentâ&#x20AC;&#x2122;s Portfolio Committee on the upcoming debt relief bill.

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INDUSTRY EVENT

FNB DEBT COUNSELLOR CONFERENCE Debt Counsellors braved the early morning traffic in a windy Cape Town to make their way to FNBâ&#x20AC;&#x2122;s beautiful glass building in the CBD. Debt Counsellors and attorneys, from businesses both large and small, gathered to meet with FNBâ&#x20AC;&#x2122;s Debt Review Centre. After a light breakfast (and after allowing a few latecomers to arrive) the conference kicked off with a welcome from Faadiel Toffie. After a short intro from Faadile and Buyile, Ms. Athaly Khan spoke to the audience and outlined how FNB wanted to use the occasion to find solutions to some challenges. She briefly touched on recent systems challenges which had seen many Debt Counsellors slightly concerned but which had been resolved.

Buyile then took the audience on a walk down memory lane, as he discussed some of the past developments for the department and areas where they had overcome past challenges. Though FNB have been a bit quiet (or as Buyile put it: “some people have been asking: “where have you been?“”) they are still firmly committed to the industry and consumers under debt review. Buyile said they had to take a small step back and decided to engage with the industry on an association level, but would like to engage with as many Debt Counsellors as possible in any way possible. Gert, Faadiel and others discussed possible process (and technology) improvements that may soon be seen like, increased functionality on the FNB app and use of USSD codes on mobile phones (Unstructured Supplementary Service Data). FNB would also like to use technology to speed up and automate as many of the simple things in the process such as cancelling debit orders, drawing statements and getting paid-up letters. Plans are already in place to do so. A big focus of the day (other than informal chats and questions about industry developments) were 4 main issues which FNB had identified as areas needing innovation. For example, the process of creating a new reference number for payments made towards overdrafts (which are partially split form consumer’s cheque accounts). FNB hope to now move the split and creation of the new payment reference number before the CoB phase. Another plan is to monitoring the transaction account and see if it continues to be used. If not, it may be auto-closed after a certain time period or consumers can continue to use the account (without the overdraft, of course) as their normal transaction account (and normal fees will apply). Though the project is underway it may take another year or two to iron out all the kinks. For now, FNB are focused on preventing any “set off” money grabbing from consumers’ transaction accounts while under debt review.

Debt Counsellors were able to break away into several small groups and brainstorm the various issues to come up with innovative ideas and suggestions from a new perspective. After feedback from the workgroups, there was a chance to discuss the increase of VAT, Reckless credit investigations and the new Debt Counselling fees guideline issued by the NCR. Afterwards, the crowd enjoyed a delicious lunch and got to mingle before heading back to work.

A Successful Conference FNB Debt Review are based in Gauteng and the Conference in Cape Town allowed many of the team to get to meet Debt Counsellors face to face who they usually only deal with telephonically and electronically. It also gave FNB the opportunity to speak to those who work with them every day and ask them for a fresh perspective on many key issues. Ms. Athaly Khan described the day as a success, saying: “Today was gold!” She said: “None of us is as smart as all of us” referring to the clever ideas proposed by the many Debt Counsellors regarding the 4 main topics of the day.

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