Debtfree Magazine March 2019 by Debtfree Magazine

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

JUST SAY

NO March 2019 www.debtfreedigi.co.za

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It is around March when you realize that time flies. Once again the year has slipped from the fresh excitement (and financial strain) of January, through the disappearing month of February into hard core 2019. You just blink, and a quarter of the year has disappeared.

In this issue, we look at one reason why many people find themselves in financial difficulty; lending money on behalf of family and friends. Many people have found themselves requiring debt review because of loans made to others. Even those already in debt review get asked to help out financially even though they themselves are already battling. We take a look at why it is hard to say no to those close to you and how February and March are traditionally you can learn to do so. big months for debt review, as consumers who have been pulling We have lots of tips, news, reviews their hair out trying to make ends of recent legal cases and advice meet, finally get up the courage to in this issue too. Be sure to check enter debt review. This means that out the announcements pages and these are some of the busiest months service directory if you need some for debt counselling firms. Soon help with anything to do with debt April hits with its customary drop review. We also look at the recent off of clients who either panic due uptick in load shedding, and what to having entered debt review and we can draw from that as well as worrying that their credit providers get some good advice in our Debt are complaining about getting Review School pages. money or those who simply throw away their progress for a few days Three months can disappear in a flash. Donâ&#x20AC;&#x2122;t let the weeks ahead holiday (watch out for that). slip by in a blur, be sure to make Thousands of clients however, will the most of the days ahead. Enjoy power through and continue their the public holidays and time spent with your family and friends, soak it journey to financial freedom. up, let it refresh you. Enjoy the last

days of summer and look forward to the rain ahead that will hopefully full up the dams. Try to enjoy the load shedding as it gives you the opportunity to actually talk to the people around you. Take a moment to smell the roses on your journey to becoming debt free.

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LEARN TO SAY NO

THEY TOOK MY MONEY

2019 DEBT REVIEW AWARDS

WHAT WE LEARN FROM LOADSHEDDING

SERVICE DIRECTORY

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C O N T E N T S

Don’t let debt be your legacy. Debt leaves a mark on all of us. And if we don’t manage it, it can pass from us to our children. But if you call us today we can help you. We have already helped 50 000 South Africans just like you. We can signiﬁcantly reduce the monthly payments on the money you owe, so you can pay off your debt and live your daily life stress free. What is your ﬁnancial freedom worth to you and your family?

Call 087 237 7874 today and together we can take control of your debt.

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DEBT REVIEW SCHOOL In larger debt counselling firms you may end up dealing with different members of the same team. Feel free to ask if the person you are talking to is a NCR registered Debt Counsellor or their administrative assistant.

LEARN TO SAY

LEARN TO SAY NO! Most people don’t enjoy confrontation. This is the main reason saying no to our family and friends is so difficult! When the people closest to us ask for financial help, it can be very hard to turn them down, even if our financial situation is not great. Many people find themselves accepting debts they can’t really afford on behalf of their partner, friends or family members. One of the common outcomes of taking on other peoples’ debt, is when they don’t stick to their side of the deal and repaying you. For a month or two they stick to the arrangement, and pay what they have promised, but soon they start to come up with excuses not to carry their weight. This can leave you out of pocket, having to pay a credit provider for a debt that was not even yours to begin with. If your financial situation was tight before taking on this extra debt or, perhaps, if your income decreases, this could result in missing a debt repayments and eventually receiving a summons. This damages our credit rating and can threaten our assets and income.

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LEARN TO SAY NO!

PUT IT DOWN IN WRITING Many such arrangements are made informally with no actual consideration to what will happen if your family or friends canâ&#x20AC;&#x2122;t pay you back. Many people are too shy to ask their friends to give them a thorough breakdown of how they are currently using their finances each month to see if they have enough money left at the end of the month to pay you back. If your friend is asking you to get a loan so they can start their new business then you may be too shy to ask to see (in writing) exactly how your friend is going to get the business up and running. Where will their stock come from, how much will they buy, where will it be stored, do they have buyers waiting, do they have a realistic plan or is it a pipe dream? If someone wants you to take on huge liability on their behalf, then they must be prepared to bare their soul and show you exactly what is going on.

LEARN TO SAY NO!

LEARN TO SAY NO! If you cannot realistically and safely take on debt, or if you feel that it is likely you will never get the money back, then you have a tough choice to make. First, consider if you can afford to simply give them the money and never get it back. If so, then go ahead and hope for the best. If not, then you must say: “no”. If a bank, which makes money out of offering loans to people, is too scared to give your family member or friend a loan, it is likely they don’t think they will ever get that money back. Secondly, be aware that helping them out in the short term, may not actually be best for that person. Your friend may get money from you to start their new business that they cannot realistically run and cause huge problems for themselves and their clients. You may actually make their situation worse and not better and could ruin your relationship in the process.

LEARN TO SAY NO!

SAYING NO TO FRIENDS If asked by a friend to get a loan on their behalf, then you must get all the facts. Can they show you that they have applied for loans with various credit providers? There are approximately 6000 credit providers in SA. How many have they actually gone to? Only one or two? These firms are in the business of giving loans, you are not. Make sure they have spoken to lots of different credit providers before they came running to you. Sit with them and discuss if they have sold any available assets they have to get the money they need. Maybe you can rather buy something from them to help get in some of the money, instead of taking a loan (and maybe they can buy it back from you one day). They may have a cell phone or TV set that you can take off their hands for some quick money, then get the rest (a smaller amount) from a credit provider. If you do decide to help them (and are prepared to lose your friendship trying to get the money back) then make sure to put the arrangement down in writing, this way there is no confusion about the repayments.

LEARN TO SAY NO!

SAYING NO TO FAMILY There can be a lot of family pressure for someone who is employed to help others get funds in an emergency. It could be the death of another family member, or a sudden medical emergency. All eyes may turn to you and you may feel pressured to act as an ATM. In situations like this, there is often a false sense of urgency. Many hospitals will allow people to pay a small up front amount and the balance later. Do you need to provide the full amount? You could simply be the easiest way for family members to get money, but not the only way. After all, there are thousands of credit providers out there looking for clients. In most families, there are several family members who could contribute a small amount towards a bigger total. Sure, they may have to sell off an asset or two to get the money, but do not feel pressurised to take on the whole obligation, when others can actually help.

KIM ARMFIELD

AND ASSOCIATES

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LEARN TO SAY NO!

SAYING NO MIGHT BE BEST It is hard to say no to those closest to us. It can be difficult to ask your friends and family members to open up about their finances, if they come to you asking for financial help. But if they want the help, then it is not unreasonable to do so. You would be taking on a huge risk and are entitled to all the facts. Just by doing this you may help the person realize that there are other ways to deal with their financial needs. If you are willing to take on the risk and assist those around you, then you should mentally prepare yourself for the event where they never pay you back, it is very likely this will happen. So, make sure you can afford it. It is often best to look for alternatives and get others to all chip in rather than take on all the risk yourself.

Remember that by taking on debt for someone else, you may end up not being able to repay the debt yourself and losing your assets. This will make life for your family incredibly difficult. So, before agreeing to do so, be sure to take a moment to consider all the options. Ask for all the facts, and put any arrangement you make down in writing to help your friends and family realize how serious the matter is.

You may also get all the facts and after thinking hard about the situation you may realize that you have to say no!

THEY TOOK M

BUT I TOLD TH

MY MONEY...

HEM NOT TO :(

DEBIT ORDERS & GETTING YOUR MONEY BACK When a consumer enters debt review, they normally have many existing debit orders on their bank account to pay the different credit providers. They may even owe money to the bank that their salary gets paid into. Their Debt Counsellor will quickly make a new, better plan on how they can realistically pay their credit providers and these figures will normally be much lower than the existing debit order amount. The National Credit Act has created Payment Distribution Agents (PDA) who help consumers to make one simple monthly debt repayment into one bank account each month (and they do the rest). This helps consumers to better manage their debt repayments. One of the very first things that needs to happen when someone starts debt review (and will now be paying new figures each month) is to cancel these existing debit orders, and rather organize that a single debt repayment is made to their PDA.

DEBIT ORDERS & GETTING YOUR MONEY BACK

CANCELLING DEBIT ORDERS Cancelling a debit order at any time can be a challenge. It seems that computers are better at having debit orders loaded than getting rid of them. The date that the debit order is cancelled can also be a factor as many debit orders* sit waiting on a personâ&#x20AC;&#x2122;s account for money to come in and then quickly whip that money away. It requires filling in forms and getting them to the bank on time. It is also important to realize that it takes a number of days for the banks to process and make the needed changes. It doesnâ&#x20AC;&#x2122;t happen instantaneously. * In this article we have lumped things like Aedo, stop orders, Naedo, the coming DebiCheck and all other sorts of payment method names together for simplicity but slightly different rules can apply. We just like to keep it simple and called them debit orders.

DEBIT ORDERS & GETTING YOUR MONEY BACK

WHY THEY MAKE YOU JUMP THROUGH HOOPS

Filling in forms and having all the fact and figures about each of the debits that you want to cancel might seem painful, and may even feel like the bank doesn’t want to help, but this is not the case. The banks want to make sure that you really DO want to cancel that particular debit order. After all, part of the money taken may cover important things like insurance. Imagine if they cancel a debit and the insurance doesn’t get paid and then something bad happens, and you can’t claim because the payment wasn’t made. You might try to blame the bank for acting without your instructions. You may say that you wanted to cancel all your other debit orders but not that specific one. This is why the banks have detailed forms they want filled in, and do not want a general one-line email saying: cancel my debit orders (or cancel my client’s debit orders). There are legal ramifications, and they want to make sure you know what you are cancelling.

DEBIT ORDERS & GETTING YOUR MONEY BACK

THEY TAKE THE MONEY EVEN THOUGH YOU CANCELLED It is possible for debit orders to take funds out of your account on the first month that you enter debt review even though you have asked your creditors to cancel them. This could be because you may have asked them to cancel the debit order after it is already on their system waiting for funds to come in. This can cause chaos since you are now meant to make your new (smaller) debt repayment via the PDA. You have to pay through debt review... but now you might not have enough money to do so. What do you do if this happens?

YOU AND YOUR DEBT COUNSELLOR CAN TALK TO THE CREDIT PROVIDER AND ASK FOR THE MONEY BACK Emails and letters can be sent back and forth trying to prove what was said and when. This normally takes a while and can leave you cashstrapped while you wait. This is especially a challenge if you have already paid via your PDA (as instructed by the Debt Counsellor) and then the credit provider goes and takes their money again. You may end up with no money for your monthly groceries.

YOU COULD USE A BANKING APP Many of the banks now have Apps that run on your mobile phone. These Apps are very sophisticated and have a lot of different functions that you donâ&#x20AC;&#x2122;t get on online banking. One such common feature is a debit order reversal. You can even install this app after a debit order has gone off and then use it to do a reversal. There is usually no fee to do this and the money will instantaneously be back in your account. This can be the fastest and most effective way to deal with naughty debit orders.

BANK ONLINE Many banks have a similar function on their online banking. If you have internet access you can perhaps make use of this function. You could even call the bank and ask them to talk you through the process while you are online.

DEBIT ORDERS & GETTING YOUR MONEY BACK

STOP THAT PAYMENT! If you want to be extra sure that a debit order will not go off, then in advance, you can ask your bank to do a “stop payment”. This sounds similar to a stop order but is basically the opposite. This is something that the banks can load onto their system that prevents a debit order from going off, even if a request is made. Sometimes there is a small fee that applies to have the bank put that in place but it can be well worth it. Rather than have thousands of rand taken off for a car repayment that you are already going to make, via the PDA and debt review, you can pay a few rand and make sure that that debit order doesn’t mess things up. These stop payments usually last 6 months. If a debit order doesn’t go off for 3 months in a row it is meant to be automatically cancelled according to country’s payment rules. This is designed to protect people from monthly fees for rejected debit orders adding up.

DEBIT ORDERS & GETTING YOUR MONEY BACK

DEBIT ORDERS NOT SO SCARY Your Debt Counsellor will talk you through the process and will ask you to fill in the right forms when you begin debt review. In fact, these days your credit providers may even send you the right forms (even with some of the information already filled in) when they send the balances you owe to your Debt Counsellor, this helps a lot. Work with your Debt Counsellor to make sure that you swiftly cancel the debit orders in time, or that you use helpful tools like the bankâ&#x20AC;&#x2122;s Apps to reverse any debit orders that slip through the net. Also be sure to not miss any crucial payments that need to happen (like insurance payments) when you rearrange things. And donâ&#x20AC;&#x2122;t forget to set up that new payment each month to your PDA to make sure your credit providers start to get the new restructured debt repayments through debt review.

What if...

YOUR CLIENT’S VEHICLE IS STOLEN OR WRITTEN OFF?

Is he really insured, and if so, properly? Could the insurer repudiate the claim because of his debt review status? As he cannot borrow, how does he replace his vehicle? Since he can’t get more credit, how does he replace his vehicle?

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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 DEBT REVIEW CONSUMERS SAVE BILLIONS The Banking Association of South Africa (BASA) recently released some figures about how much they have been prepared to give their clients under debt review in concessions during 2016 and 2017. 2016 â&#x20AC;&#x201C; R3.4 Billion 2017 â&#x20AC;&#x201C; R4 Billion Once again, this goes to show how consumers under debt review benefit greatly from the willingness of credit providers to cooperate with a well-run and organised system of responsible debt repayment.

PRICE WATERHOUSE COOPERS 3000 PAGE STEINHOFF REPORT Auditors, Price Waterhouse Coopers recently released a 3000 page and 4000 page annexure report into all the financial skullduggery that was going on at furniture giant Steinhoff. The report reveals that one of the top executives, who used to work for the company (a bunch resigned as the house of cards began to fall) told other execs to mess with the figures and engage in a bunch of dodgy transactions. None of these executives still work for Steinhoff as it stands today, but they were up to this nonsense for over a decade at least. The firm has stated

CAPITEC TAKES TOP LOCAL SPOT ON FORBES LIST that it intends to take legal action against these former employees. The report shows that third party firms were used in these dodgy transactions. These firms often had similar sounding names or even changed names, further confusing investigators and investors. Some of the main culprits were Talgarth Group, TG Group and Campion Group also known as Fulcrum Group. The report reveals that the executives managed to inflate profits to make the companyâ&#x20AC;&#x2122;s stock appear more appealing to investors. The extent of the fraud currently identified seems to amount to well over R100 Billion.

Forbes, who are famous for their lists of billionaires and brands, has released the findings of their research into the worldsâ&#x20AC;&#x2122; most popular banks. This follows a survey of more than 40 000 customers around the world, including South Africa. Locally, it was Capitec Bank (with 13 333 employees) which continued its service delivery dominance, rated best by South African customers. Followed closely by FNB, Bidvest, Investec, and Nedbank.

FIRST OF 3 ESKOM PRICE HIKES STARTING IN APRIL The Energy Regulator has run public consultations, and has now given Eskom permission to bump their prices by 9.41% in April 2019. We all know that Eskom is in a lot of trouble, and their systems need a serious overhaul to even begin to keep up with the growing energy demand across SA. Rolling brownouts and “loadshedding” have seriously impacted on the country’s economy (and investment reputation). Eskom asked consumers to reduce their electricity use, and then when the public concurred, Eskom were suddenly not invoicing out as much as they were before! The only obvious solution that

presented itself, was to push up the price of what the reduced amount that they are now supplying. Nersa, has also given the ‘go ahead’ for Eskom to hike prices by another 8.10% in 2020 and 5.83% in 2021. This will mean that by April 2021, customers will be paying an effective 25% more for electricity than in March this year. Eskom has reported that it is currently running at a R500 Million loss each month. Even with as much as a R100 Billion bailout from government planned, (from tax payers money) Eskom will still not be able to make up for lost ground

NCA AMENDMENTS NOW ON THE PRESIDENTâ&#x20AC;&#x2122;S DESK due to the incredibly high interest rates and fees on their very big existing debts. Not only do they need to service their existing debt, but further invest in expanding capacity. Since 2007 combined economic inflation locally has totaled around 74%. During this same time Eskomâ&#x20AC;&#x2122;s electricity prices have shot up by around 356%.

Recently there have been heavy discussions about amendments to the National Credit Act. The current amendments will not be addressing any of the well known major industry issues but rather introduces debt review done by the NCR for those without income or low income (called debt intervention). Addressing the big issues with the Act has been delayed for a future date. Parliament has confirmed that the National Credit Amendment Bill has been passed by the National Council of Provinces plenary and has now been sent to President Ramaphosa for assent. His office will decide if the Act is constitutional and it could be signed and published before the coming elections.

WHAT WE LEARN FROM

LOADSHEDDING

NOT ENOUGH INCOME Producing energy is a complex and sophisticated business and we all benefit from being able to flick a switch and have electricity, thanks Eskom. Sure we do pay for it but, thanks anyway. These days, almost all our devices run off electricity. If however, Eskom are not able to make enough power to go around, then we all have a problem. Disasters as well as supply and maintenance issues can hit us hard. It is like missing days of work or being off work without pay, and finding that come the end of the month you have not earned enough to pay everyone.

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WHAT WE LEARN FROM LOADSHEDDING

TOO MANY OBLIGATIONS Consumers who have had to chose between paying their credit card, bond or car repayment at the end of a month will no doubt understand that Eskom is doing the same thing, as they turn power off to one area then the next during load shedding. More and more people are using more and more electricity. The numbers tend to grow exponentially over time, meaning that the supply also needs to ramp up to match the demand.

WHAT WE LEARN FROM LOADSHEDDING

ASKING PEOPLE TO BE PATIENT Eskom has had a great response from the public (who are basically stuck with relying on one electricity supplier so, itâ&#x20AC;&#x2122;s not like we have a choice). It is similar to getting a collections call and asking if you can pay later in the month or a smaller amount. It is great when you are able to do this the first few times, but people soon find that their creditorâ&#x20AC;&#x2122;s patience wears thin if you do so again and again.

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WHAT WE LEARN FROM LOADSHEDDING

NEEDING MORE MONEY If you are earning less and have more obligations than ever, then simply put, you need to earn more. Eskom asked everyone to use less electricity, so we did. Then they realized they were not earning as much money anymore because of this, so they have pushed up their prices to increase their income. They also face inflation and big costs to try service their debts, and still build more capacity for what lies ahead. Paying off their massive debts is killing them, and having to get even more to try build for the future is tough. When you have bad credit score and have been paying your debt hit and miss, credit providers either refuse you credit, or offer you credit at very high interest rates to offset their risk.

WHAT WE LEARN FROM LOADSHEDDING

MAKING A PLAN For too long perhaps the plans to try and rescue the Eskom situation have been too tepid. Not extreme enough. Bad habits have been allowed to carry on and bad decisions and some skelemheid have compounded the problem. Now there are big plans afoot to try right the ship. For many with debt problems one of the best things they have done is go to a professional Debt Counsellor for help to turn things around. They have made a new, better more extreme plan to sort things out. If you have sat with a growing debt problem for years it can be hard to change how you do things. For example, many consumers who enter debt review are told they need to set aside money each month towards future expenses (like TV or car licenses, car services or school clothes). It takes real self control and a change in how you have done things in the past to not spend that money and actually set it aside. Change is, naturally, difficult.

WHAT WE LEARN FROM LOADSHEDDING

TERMINOLOGY & MARKETING Terms like “rolling brownouts” or “blackouts” could be perceived to be offensive or simply carry more the thought of the supplier being useless. “Loadshedding” however makes it seem more like load sharing - we are working together to help one another. This helps, a little, to redirect the irritation consumers feel, its good marketing. If you offer a service, can you rename it or give it a smart name to win clients over?

WHAT WE LEARN FROM LOADSHEDDING

PLANNING AHEAD Having an app on your phone that tells you when the power is going out is one of those useful tools that helps you avoid wasting time. A little planning goes a long way. Knowing where your debt review is currently, and where it is going also helps you mentally prepare for the months ahead as you slowly pay off all your debt, and then look to start building wealth.

WHAT WE LEARN FROM LOADSHEDDING

ADAPTING QUICKLY AND MAKING A PLAN If you run a business now, and have not got yourself battery powered lights (or a generator) to use during the load shedding, then you are no doubt part of those losing a Billion Rand a day in business each time the power goes off. Make a plan and do it now, make sure you can get paid by having Snapscan or Zapper, get the gas cooker going, adjust your work schedule to hold meetings and do training during down time. Get smart and do it fast and you will thrive while others suffer.

WHAT WE LEARN FROM LOADSHEDDING

PAST CHOICES HAVE CONSEQUENCES This is a tough one since we all like to try live in the moment, and ignore the future negative consequences of our actions. Especially if we have a current need that we have to fulfill that is going to cause trouble down the line. We may need food now, knowing we are going to pay for the credit we use later but we do it anyway. So too, past political and business decisions, from decades ago, have slowly caught up with everyone and now it is a case of trying to adjust things to make it through. If you are busy working and paying off debt then it is important to realize that your past actions are responsible for your current situation, not your credit providers (who happily gave you credit) but yourself for a variety of reasons. Regardless, now you deal with the situation as it is, and move on knowing what to avoid in the future, you live and learn. Sadly Eskom canâ&#x20AC;&#x2122;t just pop down to their local Debt Counsellor for some good advice and a new debt repayment plan, their situation is very complex and dire. Letâ&#x20AC;&#x2122;s hope that their current plans actually work, that the extra 25% we are all going to pay for electricity over the next 3 years is enough, and that for now the lights stay on during the winter months ahead.

KZN 20 JULY 2019 WWW.DEBTREVIEWAWARDS.CO.ZA

Each year all NCR registered Debt Counsellors and Credit providers are afforded the chance to participate in an industry-wide peer review that culminates in the Annual Debt Review Awards Gala. These Awards recognizes excellence in the field of debt review and are handed out at a modest red carpet gala event

THURSDAY One of the new arrangements this year is an â&#x20AC;&#x153;open dayâ&#x20AC;? for registrants in the area. Local DCs and CPs will be able to go and visit one another on the Thursday preceding the gala and get to know one another better. If you are a local DC or CP (or will be visiting at the time) then you can speak to the organizers about going to visit the local firms or hosting guests: DebtReviewAwardsopenday@debtfreedigi.co.za

FRIDAY Several sponsors including the various PDAs, banks and others will be hosting a series of short workshops on Friday, 19 July. Friday can be tricky and there is the usual travel time needed so these workshops will be short and sweet and guests will be able to attend several in a short time period. The workshops will start mid morning and end before rush hour. This will allow guests to interact with senior staff members from the various sponsors, and discuss key industry issues and challenges. If you would like to attend please email: DebtReviewAwardsWorkshop@debtfreedigi.co.za

Visitors will be able to get together for an informal dinner at a local restaurant if they wish. This presents another opportunity to chat and get to know one another better in a relaxed social environment. SATURDAY This year the main event, the red carpet Gala will be held on Saturday evening 20th July in Mount Edgecombe, KZN. The venue is not very far from the large international airport and over 150 guests from across the country will attend. 50 different Debt Counsellors and many credit providers will be recognized on the night as guests are able to mingle, nibble and hear presentations. SUNDAY After the event and before everyone heads off home, there will be another chance for guests to enjoy a quick bite to eat on Sunday morning at a local eatery. One last chance to congratulate the winners and swop business cards. If you would like to know more about the event, or attend any of the workshops, open day or the gala event feel free to email: DebtReviewAwards2019@debtfreedigi.co.za

DEBT REVIEW SCHOOL If a credit provider begins legal action to collect money on an account before you enter debt review, your Debt Counsellor will include that account as part of your monthly budget (it wonâ&#x20AC;&#x2122;t be adjusted to a lower payment amount in your review).

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

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SKYT AFRICA Hi Almal, Ten tye van hierdie skrywe is ons nou al n paar dae in die greep van beurtkrag en volgens die verduidelikings gaan die situasie nie binnekort verander nie. Dit is ongerieflik, ongemaklik en frustrerend. Wat egter soos n soos n paal bo die water uitstaan is dat mense hierdie frustrasie op mekaar begin uithaal. Die ongeduld van motoriste tydens beurtkrag bereik nou nuwe hoogtepunte of is dit laagtepunte. Die beginsel van nugtere denke en bedagsaamheid verdwyn nou agter n denke van bogger jou! Gevalle van padwoede het reeds skerp gestyg. Ja dit is n pyn in die agterent omdat die verkeersligte nie funksioneer nie maar dit is nie die ou voor, agter of langs jou skuld nie. Dit is asof die magteloosheid om niks aan die situasie te kan doen nie n ongekende woede na vore bring. Hoe gaan ons optree na nog n week?

Self op Facebook vlieg wildvreemdes mekaar in die hare oor n onskuldige opmerking. Toegegee ons is tereg moerig oor die situasie maar ons moet dit nie op ons medemens uithaal nie. Jare gelede het ek invorderings gedoen en menigte maal was my oproepe met n gevloek en geskel beantwoord asof sulke optrede die situasie sou aanspreek of regstel. In my omgang met DCâ&#x20AC;&#x2122;s is dit ook duidelik dat hulle gereeld aan die ontvang kant is wanneer hulle opvolg oor betalings wat nie nagekom is nie. Wanneer n snytjie gebotterde roosterbrood op die grond val gaan hy botterkant na bo of botterkant na onder val? Ons wil immers n botter na bo kant dag beleef, dit wil sĂŞ n positiewe dag en het nie die negatiewe botter na onder mense nodig wat almal links en regs beskuldig en aanvat nie. Voordat daar gedreig, geskel en gevloek word dink eers wie of wat was die oorsaak van die frustrasie. Mag die donkerdae van korte duur wees! 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

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Flooding dodgy banks and large corporations with questions and complaints. Writing letters to the press and politicians. Boycots and non-compliance. These are the tools of the modern activist. With no violence, this kind of silent activism brings about change. Join us & Our Partners now, it’s fully confidential.

Debt Counsellors Collective Now that iDCC is a member of CIF 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.

Members please have your say on the latest poll regarding credit bureaus on the member’s Facebook Page.

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We are looking for a member to take the role of Association Secretary. Are you interested? Email: BDCF@offsite.co.za www.bdcf.co.za

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NCT ADJUST RULING

PREVIOUSLY SENT TO ALL DCS A while back, Debt Counsellors across the country suddenly received a copy of a National Consumer Tribunal (NCT) ruling in a case between some consumers and their Debt Counselling firm. This was very unusual. The firm is one of the largest in the country and the fact that the ruling seemed to indicate that they had not done their job 100% was not great for their reputation. But not all was what it seemed and sending the ruling out to all Debt Counsellors seems to have been premature (in retrospect) as the NCT has now rescinded and amended that ruling. Part of the problem was that this large firm never received an invitation to attend the NCT case due to wrong email addresses being used to notify them that the consumers were asking the NCT to review their matter. This meant that the NCT ended up relying on only half the necessary information. Something else unusual that happened was that the initial NCT ruling ended up saying that the CEO of the NCR had to get a copy and implied that the NCR had to do something with the ruling to show Debt Counsellors what not to do (as if this big firm had made a mistake). Seemingly the consumers never asked anyone to do this.

When the NCT first heard the case, without the Debt Counsellors attending, they were asked by the consumers to rule that they were no longer over indebted (no longer needed debt review). This is a common challenge for consumers who wish to have the credit bureau listing for debt review removed. Credit bureaus only have one type of listing for anyone in debt review and the NCR have told them not to remove this listing quickly and without a lot of extra work (which is not required by the National Credit Act). The NCT heard the matter and worked with the information given. The NCT also saw that the consumers had two accounts which had not been included in their original NCT debt restructuring consent order. The NCT are happy to grant consent orders* for debt review where all the consumer’s credit providers agree to a new adjusted debt repayment plan. It now seemed that the big debt counselling firm had somehow forgotten or ignored these accounts and thus the consent order was probably not valid (since there was no consent for those two other accounts). This was why the NCT ruled that the consumer’s debt restructuring NCT ruling was not valid and that they were no longer under over indebted and under debt review. Once the Debt Counsellor found out about the matter (probably by getting an email about their case in their inbox like all the other Debt Counsellors in the country) they immediately went to the NCT and asked to present their side of the matter. They did not want to stop the consumers from exiting debt review but wanted to present the NCT with extra important info about how they had helped the consumer. It turns out that the big debt counselling firm took over the consumers matter from another previous debt counselling firm. Before they even got to handle the matter the two supposedly ignored accounts had been ‘terminated’ from debt review by the credit provider. If a credit provider doesn’t want to help a consumer through debt review they can send out

a Section 86(10) notice and potentially start new legal action against the consumer (which the consumer can defend in terms of NCA Section 86(11) and have put back into debt review). The big debt counselling firm had, in fact, made provision for paying these two accounts in the consumerâ&#x20AC;&#x2122;s monthly budget and had included all other accounts into the consent order which was then granted (and later rescinded). Because the two accounts had never been taken to another court for enforcement they were unable to help the consumer get these accounts put back into debt review. Thus they worked with all the other accounts and got consent. This new NCT ruling then seems to show that as long as a Debt Counsellor brings all the accounts which they can work with in terms of the NCA (a Debt Counsellor cannot ask a court to rule on an account which is already potentially been taken before another court) the NCT can grant a consent order. This latest ruling still says that the consumers are not over indebted and can leave debt review. This is what the consumers and their Debt Counsellor wanted for them. They can now use this ruling to try and force the credit bureaus to remove their debt review listing. The Debt Counselling firm is happy too since they are now shown to have done a proper job. It is now clear that they were even helping tidy up somewhat after the previous Debt Counsellors. The new ruling also removes the need for the NCR CEO to have been informed and other Debt Counsellors to be told to avoid certain actions. This part of the ruling is a bit too late since the NCT already sent out that blast email to all their registered DCs. Probably the NCT will now send out another blast email with some clarification on the matter.

KIM ARMFIELD

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Consumers Want an Easier Way To Remove Credit Bureau Debt Review Status Debt Counsellors work hard to help their clients leave debt review. They work hard to help their clients get rid of debt and get back on their feet. At present they struggle regularly to get the credit bureaus to remove the overly simplistic and problematic debt review listing that is made. Consumers who abandon either the services of their Debt Counsellor or who simply donâ&#x20AC;&#x2122;t stick to the debt review court order can get stuck fighting to get the NCR and credit bureaus to have that listing removed. This issue is negatively impacting on the popularity of debt review and will no doubt also be a challenge should debt intervention ever actually kick in. The matter has been somewhat addressed in guidelines issued by the NCR but the challenges still continue and no easy solution is in sight unless small amendments are made to the NCA or regulations. Unfortunately, the focus of those with the power to do so has been elsewhere and this issue has been repeatedly overlooked. For now, consumers and Debt Counsellors simply have to work a little bit harder in this regard. * The NCA Section referring to consent orders has not as yet been amended even though the NCA has had several changes made over the years. Specific reference to debt counsellors is still missing. Legislators have seemingly not felt the need to include the change since the NCT consent order process is already working so well.

DEBT REVIEW SCHOOL When you have a financial emergency rather think of what you can sell or how you can make a clever plan than miss your debt review payment. You should also talk to your Debt Counsellor asap!

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