www.debtfreedigi.co.za

DebtfreeSouth Africa’s debt counselling magazine

February 2012

Debt review and distribution software.Proud Software provider to DC Partner, Payment Distribution Agency.

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Debt Wise Solutions

Traditionally February is a difficult month for consumers. Gone are the false hopes brought about by end of year resolutions and desperately needed holidays, sadly the harsh reality of another month end (January) coming and going with it’s trail of bills and extra costs like school books and clothes have generally left consumers crushed in it’s wake. So, as some people get a gooey giddy feeling as valentines day approaches, many other consumers are hitting rock bottom. Fortunately here in SA they can look to Debt Counsellors for help in trying to face the future with some sort of plan. First off, well done consumer on realizing you

EDITOR

CONTENTSEditors notes

News, news, news...

The Con-Court Section 129

They came to my home

DC Debt

CPA part two

ABSA & AllProDC Meeting

Service Directory

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05

12

17

22

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need help! Sticking your head in the sand is the worst thing to do. Secondly, well done DC’s for staying in the industry and fighting to balance consumer’s rights with the needs of creditors. Thirdly, well done creditors if you are not just issuing 86(10) and trying to undermine the system. It must be said that the “Big Banks” seem mainly responsible for not co-operating with the debt review process and trying to find ways around the National Credit Act to get at consumers assets. Not the Debt Review departments (who want jobs) but often the Legal Departments. Shame on you if you are one of these short sighted creditors. Most creditors continue to see the benefit of free collections in the form of Debt Review however the banks are fighting about the wording of notices they send to consumers when they want to go after their assets and we look at that in this issue along with info on the CPA and tactics used by some unscrupulous creditors. So consumers, make your payments, get educated, stay strong and get yourself debt free!

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ABSA on ForumABSA was formally invited to be a member of the Concerned Debt Counsellor Forum (http://debtconcern.webs.com/)and have provisionally accepted the invitation. It is hoped that they will be able to add their voice to the forum and present a credit providers outlook on pressing matters in the industry. ABSA have noted that they have provisionally agreed to utilise the forum as a communication channel, and information sharing platform. The forum will however not be a stage to resolve complaints for ABSA.

theDCI Collect for Debt CounsellorsThe Debt Counselling Industry (a service providing and communication platform) are doing collections of money owed to some 50 debt counsellors country wide. They report that these DC’s have fees outstanding from consumers to the tune of 7 million Rand. In the last few months, they have recovered around R180 000 for various Debt Counsellors.

theDCI provide Western Cape Stats re: Debt Counsellor numbersIn Sep ‘11, there were 382 DC listed by the NCR in the Western Cape. When theDCI tried to contact them, using information on the NCR’s website, there were 98 wrong numbers. The NCR could not provide correct numbers.

Of the 284 contacted, 52 had not been actively practicing for more than 2 years. This left 193 confirmed DC’s in the province that theDCI could definitely confirm as still registered, although some were not taking on new clients.

This year in February, theDCI once again contacted these DC’s. In less than 5 months, a further 63 were no longer practicing. There had been a further 24 DC’s who’s details had changed, but had not been updated on the NCR’s website. There are now approximately 145 practicing DC’s in Cape Town and surrounds (including the Westcoast & up to Bredasdorp) which theDCI can confirm, 22 of which are not taking on new clients. Meaning there are only 123 DC’s taking on new clients in WC .

FNB act in bad faith in Debt ReviewFNB recently got themselves into trouble in the Durban High Court while trying to get judgment in regard to a bond account of consumers under debt review. KZN High Court Judge Fikile Mokgohloa even described FNB as “reckless” in failing to participate in good faith in the debt review process involving the home owners Nagine and Kursheda Raheman.The couple had been under debt review since January 2010 and had been making restructured debt repayments according to proposals sent since February to FNB by the debt counsellor. The proposed repayment amount had even

NEWS FLASHINDUSTRY CONSUMER

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been increased in a second set of proposals in March 2010. In May 2010, the proposal was set before the Durban Magistrates Court. During all this time, the bank did not object to the proposals made nor did they make any suggestions, and the Rahemans’ continued to make payments via the debt review process.However at the High Court, FNB claimed in their papers that it was entitled to try auction off the consumer house, as it had terminated the debt review in accordance with National Credit Act, and that notice of this had been sent to the Rahemans in April 2010. FNB had then sent the consumers a summons and made application at the High Court. This practice seems to be becoming increasingly common as many banks are sending these 86(10) notices to consumers even though they are paying funds each month and trying to settle their debts in a responsible way. Defending matters at High Court can be very costly and many consumers are hesitant to go and defend their rights. Not so with the Rahemans. They were determined not to let the bank simply take their house and made sure they had their say in defense of their actions and explained how they had been responsibly paying toward the debt via debt review.Judge Mokgohloa found that the bank had failed to participate meaningfully in the debt review and said: “The legislation obliges the consumer and credit provider to participate in good faith in the review, and any negotiations should result in responsible debt rearrangement…The bank failed to respond to the proposals… I am of the view that the plaintiff’s failure to participate in the review proceedings is reckless.”Judge Mokgohloa dismissed the application from FNB with costs. Which means that

FNB had to pay for the whole court process. Judgments like this are becoming common as the courts are defending consumers rights to make payments via debt review.

Std Bank are getting too many complaints to do their jobStandard Bank have issued this statement regarding delays in responses regarding debt review and complaints related to debt review in Feb 2012:We have, in the recent weeks, experienced a high influx of queries and complaints which have adversely impacted our turnaround-time. As a result, our queries and complaints are not being resolved within the stipulated turnaround time of five business days.We apologize for the inconvenience that this is causing. We assure you that all the matters are being given the attention they deserve. It seems that because clients and DC’s have too much to complain about they can’t get all their work done. This may relate back to 86(10) campaigning by the bank.

ABSA 86(10) date “technical glitch”ABSA Debt Review Department sent out a notice in Feb to consumers and DC’s regarding some incorrectly dated 86(10) termination notices. The notice stated that: In response to the termination letters dated 17 January 2012 and received on 03 and 04 February 2012... Kindly be advised that there was a technical glitch with our Printing Department, which resulted in letters being delayed. This was only brought to our attention on Saturday, 04 February 2012, that the dates on the letters were not amended accordingly

NEWS CONT.

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to reflect the correct date of issuance. We would like to confirm that you are afforded the 10 day window period from the date of receipt to respond where need be.Kindly forward the necessary supporting documents to drterminations@absa.co.za to review and we will advise you accordingly. We sincerely apologise for the inconvenience caused in this regard.Regards |ABSA Debt Review

This follows on after the bout of complaints relating to 86(10)s issued by ABSA at the end of December (mainly on or around the 22nd Dec) which many DC’s received a huge batch. Normally creditors invite Debt Counsellors or consumers to contact them during the 10 day period mentioned in order to sort out any complications but due to the holidays and office closures this presented a huge problem at that time of year.

Creditors issue 86(10) letters primarily when they wish to pursue legal action against a client instead of sorting a matter out through debt review.

DCASA choose new National Executive Committee for 2012Just in case you were wondering who does what at the Debt Counselling Association of South Africa, here is the DCASA National Executive Committee structure for 2012:NEC:President: Paul Slot

Deputy President: Joseph de BroizeSecretary: Philippa DavisDeputy Secretary: Mauritz van den HeeverTreasurer: Mel da SilvaMember: Tony RichardsMember: Ancil van HeerdenThen there are the regional representatives: Eastern Cape Branch Representative: Anton van de VenterGauteng Branch Representative: Russell DickersonKwa-Zulu Natal Branch Representative: Kobus du ToitWestern Cape Branch Representative: Annora Mostertand finally the new post of CEO:DCASA CEO: Wikus Olivier

DC’s find themselves under debt review...clerical errorCorne Myles (a DC) has joined many other DC’s in being captured as “under debt review” by a credit provider. In this case, ABSA captured the incorrect details on a court order for a consumer and rather than capture the consumers name they captured the debt counsellors ID number. This is something that has happened to many debt counsellors. ABSA were quick to assist in removing the debt review status from their systems . This is not the first time ABSA have made this mistake with Corne’s accounts. Last year the same thing happened and was also sorted out after some paperwork was sent back and forth. At least Corne’s clients can say that their DC really knows what it is like to be under debt review.

NEWS CONT.

22 Loans from the same Creditor?A Cape DC has reported a single consumer with 22 loans/accounts from African Bank. African Bank have made provision for the consumer to pay off the debts at basically no interest whatsoever, bringing the consumers obligations down from R16 000 each month to a far more realistic R5000 monthly.

Vehicle sales commission earners sigh with relief.Vehicle sales statistics are showing around a 7 – 8% increase in sales in recent months compared to last year. Among other factors there has been an increased demand for new vehicles from rental companies accounting to about 17% of the new vehicles sold. New vehicles are also showing increases in sales compared to second hand vehicles.

NCR in SowetoThe National Credit Regulator (who has been very quiet over the last few months) did a press promotion and consumer education appearance in Soweto this month. They mentioned some interesting stats: the NCR has received over 440 000 phone calls to their call center since opening their doors, and the NCR website has over 1 million hits since going live. However many DC’s are still complaining that after being in business for almost 5 years they have never received a single consumer referral from the NCR. The NCR has registered 4,815 credit providers (508 matters involving these creditors have been investigated), 2,023 debt counsellors (146 matters involving DC’s have been investigated) and 11 credit bureaus.

Constitutional CourtThe Sebola (& NCR & SERI) v Std Bank (& BASA) Constitutional Court application re: Sect. 129 meaning of the word “deliver”, and whether a consumer needs to know if a creditor is taking legal action against them was heard on Tuesday 14th February, Judgment was reserved. To find out more about what this all means and what the arguments were, read the article in this issue.

The Rand does wellThe Rand hit 7.77 to the US$ on Thursday 26th January, its strongest level in nearly three months. The currency continues to hold its ground despite economic turmoil worldwide.

More Debt review enquiries this yearDebtbusters (a big DC company) report that they were getting around 1000 enquiry phone calls about debt counselling each week in January ‘12 compared to 300/week last year January, showing an increase in activity in the industry this year as consumers continue to feel the pinch of increased prices and non increasing wages.

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NEWS CONT.

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Section 129: Section 129 of the NCA (which applies to all mortgage bonds and most other credit agreements) sets out steps that the credit provider must take if a consumer defaults. The section says that after 20 days of being in default, the creditors should “draw the default to the notice of the consumer in writing” before debt enforcement. This would include notifying the consumer of the default (missed payments), and proposing that the consumer refer their credit agreements to a debt counsellor or to another form of alternative dispute resolution for the parties to resolve any dispute or agree on a plan to bring the payments up to date and sort out their debt problems.

The Constitutional Court considers Section 129Sebola and Another v Standard Bank When it was heard14 February 2012

INDUSTRY CONSUMER

The Constitutional Court:The question that the Constitutional Court needs to answer, is whether a consumer can say they never got the notice, or that it was never drawn to their notice as a defense to a court application to enforce the credit agreement (like if a bank sends a summons and wants to sell a persons home). The Supreme Court of Appeal and a number of High Courts, have in the past decided that it is not a defense to such a matter for a consumer to say they did not receive the notice.

Mashilo & Nombeko SebolaMr & Mrs. Sebola, were behind on their bond repayments (they got a bond of just over R1 million in Nov 2007) when Standard Bank eventually decided they would like to sell the house on auction rather than continue to try get the Sebolas’ to solve the problem. The plan was to kick the Sebolas out their house, sell it on auction, and then ask Mr Sebola to pay off the shortfall (if there was one) over time. They even sent him letters and notices by registered post and later a summons about all of this, he did not however, receive any of the documents, as the Post office sent them to the wrong town. So Standard Bank went off to court...without the Sebolas’.When Mr Sebola later learned that the bank had already got a judgment against him in September ‘09, he made an application to the South Gauteng High Court for rescission of judgment to stop the bank selling his place. In that application he raised as a possible defense the fact that he did not receive a section 129 notice. In August ‘11 his application was dismissed on the basis that the bank need only show that it sent the notice, not that Sebola received it. Judge Phillip Boruchowitz said the question at issue had been authoritatively settled by the Supreme Court of Appeal last year. The SCA had ruled that it was sufficient to establish compliance if there was delivery of the notice in the manner chosen by the consumer in his contract, and that actual receipt was the consumer’s responsibility. Judge Boruchowitz said the high court could not depart from the decision of the Supreme Court of Appeal and was bound by it. Later a full court of three judges on appeal at the court ruled the same.Most Consumers would have backed off at this point and let the house be sold even though they had tried their best to remedy the situation, however, with a little financial help and a tough attitude the Sebolas decided to take things further...to the Constitutional Court.“The finding by the (appeal court) in the Rossouw decision that the responsibility of the delivery of the National Credit Act section 129 notice is squarely placed on the shoulders of the consumer … cannot be acceptable in a democratic society based on human dignity, equality and freedom,” Mr Sebola said in his affidavit to the Constitutional Court in October ‘11.By this point SERI, the NCR and BASA had got involved as friends of the Court.

Standard BankRepresented by Chris Loxton Std. argued that they had already abandoned the judgment they got without Mr. Sebola knowing and the matter is now moot. They pointed out that Mr Sebola had been behind on his payments for a year already before they sent him the notices and summons. Standard Bank stand by the many judgments of various courts which say that say that a creditor only has to send out a notice, not that a consumer needs to actually get it, before they take legal action. They say that their contracts set out how consumers say they want to receive information and at which address they want to get notices. If consumer move etc. it is up to consumer to notify the bank of the change.

Represented by Stuart Wilson

SERI was admitted as amicus curiae (or a friend of the court) in the Sebola case because they said their argument was unique and not presented by Mr Sebola. Basically SERI say that, even though the matter is “moot”, it is nonetheless in the interests of justice for the Court to consider the interpretation of section 129 of the NCA. They say that a section 129 notice informs a consumer of important statutory rights which are essential to ensure that sales in executions of homes are constitutionally valid. Its actual receipt by a consumer must be required before a credit provider can enforce a credit agreement. Nonetheless, the credit provider does not need to prove in advance that a consumer has received a notice in terms of section 129, and it will always be for a consumer to raise non-receipt of the notice before court as a defense. Once it is established that a section 129 notice has not made its way to a consumer, SERI contends, a Judge should postpone the proceedings to allow the consumer to consider the contents of a section 129 notice during the next 10 days and decide whether to exercise any of the options set out in it. SERI also proposed that the court declare that section 129(1) of the Act requires that the notice issued in its terms “comes to the attention of the consumer”.

amicus curiae

-Friends

of the Court

INDUSTRY CONSUMER

Represented by Gilbert Marcus, SC

BASA are concerned that if creditors have to send a sheriff of the court to serve documents like a section 129 letter on consumers it will slow down their collection process and that it will add some costs to offering credit. This is even though any extra costs for such action are simply added to consumers accounts. They are concerned as Basa spokesperson Nicky Lala-Mohan said that every consumer could just say they never got the notice and then the creditor would have to send it to them again. They have been criticized for over dramatized the situation by saying that this matter could “endanger the entire credit industry”. They have also said in what sounds like a threat, that “It would make the business of providing credit even more risky and onerous than it already is, which would have a chilling effect on the South African credit market”.

Represented by Matthew Chaskalson

The NCR who regulate the credit industry register credit providers and are tasked with consumer education regarding the NCA. Since this matter has to do with the Act they wanted to be involved. The NCR took the side of the consumer in this matter stating that consumers need to know what options they have. Essentially they also say that the exercise of the consumer’s rights triggered by receipt of the notice, such as referring the credit agreement to a debt counsellor, would be of no effect if the consumer doesn’t receive the notice and learn about them. The NCR want to promote non-litigious methods to resolve such cases where possible. They have been quoted as saying “There is a lack of capacity in the court system to deal with the volume of credit-related cases, and given the ever-increasing volume of such cases, this backlog continues to grow”. They say that where alternative dispute resolution is pursued (eg. debt counselling) customers are more likely to go on to make payments. Of course, other courts have made this a non issue by excluding accounts, where a section 129 notice has been sent, from debt review. However Debt Counsellors can help consumers pay in full or according to an arrangement for that particular account while paying less to all their other debts. The NCR argue that in cases where an opportunistic consumer deliberately

fails to collect a registered letter, the credit provider can protect itself by having a sheriff deliver the notice. It would cost between R28 and R44 on average where needed, and these costs would be born by the consumer, and would be minor compared to the cost of enforcing the credit agreement through legal means. Mr. Chaskalson, said the poor stood to lose the most in terms of executions since they were most likely to face service delivery issues regarding changed or hard to deliver to domicilum addresses etc.

Result:Judgment has been reserved.

Questions asked & discussed by the Court:

Justice Edwin Cameron wanted to know about the risks to the credit market if banks could not exercise their rights in the usual way.

Chief Justice Mogoeng Mogoeng wanted to know: “How do you stop abuse from a debtor who simply refuses to pay and says, repeatedly, that they never received a notice?”

Judge Johan van der Westhuizen said that consumers might think “I am not going to open this thing because the bank is probably after me,”

Judge Yacoob, who is blind pointed to other possibilities with “ a consumer who can’t see”.

Other scenarios discussed included a child or an angry spouse throwing away the notice without the consumer even knowing it had been delivered.

Why it could matter

If consumers don’t get the notice they won’t be advised to go for debt counselling.

If the court rules that consumers must become aware of the notice or that another 10 days must be given to consumers then conssumers could apply fro debt review before getting these notices come into effect and they could have these accounts included in their debt review

Why it doesn’t matter

Even though the Section 129 Notice tells consumers to go for debt counselling courts have ruled that if a consumer gets a section 129 notice for an account before applying for debt review then that account can’t be added into their debt review...their other accounts can but not that one.

Debt Review consumers are reporting to their Debt Counsellors that they are receiving visits at their homes from representatives of the major banks.One DC reports three consumers who have had visits from the credit providers at their homes in the last few days. Two received phone calls from collection people, representing the bank, requesting meetings in the evening at their homes. One consultant did not even call the client, they just pitched up at their house in the evening.The consultants then inform the consumer that they are “no longer under debt review” but that they can “help them” to put a payment plan in place. With so much confusion at the banks regarding bulk 86(10) drives it is seldom that the banks even acknowledge that consumers are under review any more. However it seems these visits target consumers in the process.The consultants tell consumers that all they would need to do is sign the banks paper work

which includes an Acknowledgement of Debt and paperwork which states that the consumer has now chosen to work directly with the bank and agree to a payment arrangement. In some cases the rate and amount asked for is shockingly less than that agreed to by the bank in the person’s court application for debt review. Consumers are advised to avoid signing any such documents. However when consumers have told consultants that they would not sign the papers they have been threatened with legal action, as according to the consultants, this matter was now “beyond their control” without the signed documentation.DC’s have contacted the major banks involved requesting information about why consumers are getting these visits, needless to say, no response has been forth coming.If you receive such a call or visit please inform your Debt Counsellor and your representing attorney.

They came to my homeCONSUMER

Form 42

Reminder: The NCR have been waiting on DC’s to submit their Form 42’s regarding statistics for consumers applying for debt

review for the period from 1 October 2011 to 31 December 2011. This was meant to be done on or before the 15 February

2012 but it’s never too late.

I am sure you have asked yourself on numerous occasions what is the difference between Whole Life Assurance and Credit Life Insurance and are probably no closer to finding an answer.I am also sure that you asked yourself why is Credit Life more expensive than Whole Life? I think to get a better understanding one has to look at benefits, structure and a few other factors that may assist in solving this “riddle”Firstly, whole life is exactly what is says – it is for whole of life and there are various factors that insurers would use to calculate a rate like your occupation, are you a smoker, your education etc. They would also then look at medical history and will underwrite at application stage hence the reason there is always blood tests and DR`s reports when applying. Based on these factors they will either issue the policy at standard rates or alternatively have exclusions, premium loadings etc. Credit Life on the other does not underwrite at application stage and accept risk without medicals, underwriters will however have a 12 month waiting period for pre-existing conditions or underwrite at claims stage.The benefits are very similar with both products except that Credit Life has a retrenchment benefit and whole life is a lot cheaper. So as

you can see there are benefits to both and both have got room within your portfolio.Credit Life however is directly linked to an outstanding amount on a loan and will settle your creditors directly in the event of a claim. Whole Life on the other hand is beneficiary or estate driven for example; when you die the proceeds must be paid to your beneficiary (wife, children etc.) or paid into your estate if you have no beneficiary nominated on your policy. So in other words your beneficiary must settle your outstanding bills or claims must be lodged against your estate – this I can assure you is a very time consuming exercise!!With Credit Life settling some of your smaller debts immediately it does create liquidity within your estate – in layman’s terms, there will be less debt within your estate and should make the process a tad quicker. With Dread Disease & Disability, whole life pays to the life assured who must then decide as to how he/she wants to utilise the funds. Credit Life will once again settle you creditors directly.Which is better? That is for you to decide as both have a definite purpose but generally credit life is best suited to cover small unsecured loans like personal loans, clothing accounts etc. and whole life for the bigger debts.

Whole Life Assurance vs. Credit Life Insurance

Eastern Cape:Sam HaasbroekT: 072 55 104 99E: sam@debtplan.co.za

Western CapeSam HaasbroekT: 072 55 104 99E: sam@debtplan.co.za

GautengMarijke WesselsM: 071 605 4337E: marijke@debtplan.co.za

Free StateMarijke WesselsM: 071 605 4337E: marijke@debtplan.co.za

Call us on 0861 33 2875 www.debtplan.co.za FSP 30490

NCR accredited payment distribution agency

As one of the five NCR accredited PDA’s (payment distribution agency’s) DC Partner has been part of the debt review industry since August 2008. Situated in George in the Western Cape, we are also the only PDA south of the Orange River.The systems, infrastructure and staff of DC Partner have been exposed to collection and distribution of payments for the past decade.DC Partner strives to render services of the highest standard to customers.DC Partner makes use of excellent software, provided by Debt – Wise. The PDA module is locally based and inherently linked to the Debt – Wise Debt Counseling software, which is internet based. Consumer information seamlessly passes from the Debt Counseling System to the Payment Distribution Agency.We are very excited to announce that we have integrated our PDA distribution system with the Debt-Wise front end software. The distribution system was developed to integrate into the Debt-Wise software in such a manner that the user will not need to change anything in their systems, but could just continue with their day to day work and would see the distribution side as an additional tab on their home screens.

At this stage we are systematically moving all our current clients to the new system and this goes hand in hand with in office training by one of our skilled training officers.Our main focus during the planning and creating of this system was to maximize data availability and accuracy. The DC can log into the system from anywhere in the country and with the click of a button he/she will be able to see what is going on in their dedicated PDA trust account, which clients made payments within the last 1, 2, 8 or even 24 hours, what fees are due to be paid to him/her, which files have distributed, which clients are in default. We do daily distributions on this system and it is therefore important to make the system as user friendly and interactive as possible as things happen very quickly.This will enable the DC to always see and be on top off what is happening to all of their clients and react, if needed, immediately.DC Partner offers free in house training at any location in the country and we will also give all interested DC’s free access to our system for a trial period of up to three months.

For any further queries please feel free to contact our offices at any time.DC Partner George OfficeWillie Boshoff – pda27@dcpartner.co.zaArnold Steyn – pda28@dcpartner.co.zaHerman Joubert – herman@dcpartner.co.za044 873 4440, 044 873 4530, 044 873 4532DC Partner Gauteng OfficeFrancois Van Zyl – francois@dcpartner.co.zaKonstant De Vos – vossie@debt-wise.co.za012 348 7624

It is understood that when a consumer applies for debt review, they are struggling to meet their debt obligations, and may have a spotty repayment history. Naturally so, or the consumer would not need help. It could be that the consumer received a Section 129 Notice, which advised them to approach a debt counsellor for advice, because a creditor is about to send them a summons.

It is therefore a great thing when a Debt Counsellor can consult with a troubled consumer, and help them to adjust their household budget, and make proposals to their creditors based on what they realistically can afford to pay each month. The Debt Counsellor will then, after some negotiation, even help turn

the proposals into a court application and have the matter set down at court.

It is a real blow to a Debt Counsellor if, after doing all of this hard work, the consumer simply decides not to make their payments. All this work has been done, and the DC is going to struggle to recover the funds owed. What can they do? In the last 3 months theDCI have helped DC’s collect over R180 000 owed to them in restructuring fees, legal fees and after-care fees. At present, theDCI is helping over 50 DC’s collect approximately R7.2 Million owed, all at no upfront costs!

For more info login at www.thedci.co.za and click on “collections”

DC debt?

In this and articles that follow some aspects of the Consumer Protection Act 68 of 2008 [CPA] will be considered

THE CONSUMER PROTECTION ACT 68 OF 2008: PART TWO

It is important to note that the CPA does not apply to every party. As in all Acts, exemptions were included in the CPA, such as the following entities:The State – supply of goods and services in terms of section 5(2) (a).Big Business – sales and services exceeding R2 000 000 to juristic persons such as companies, closed corporations etc) and who is not a sole proprietor – see section 5(2)(b).Credit agreements – no credit agreement can be challenged under this act – see section 5(2)(d).Auctions – goods purchased at auctions are not subject to this act but the actions by the auctioneer are subject to the rules of this act.Employment services – are not subject to this act – see section 5(2)(‘e).Collective Bargaining Agreements – are exempted in terms of the Constitution and Labour Relations Act – see section 5(2)(f).Exemptions by the Minister – see sections 5(2)(‘c), 5(3)(a) and 5(4).

The main aim of the CPA is to protect consumers against ruthless suppliers and credit providers. One could therefore argue that South Africa has become a leader in consumer protection.

Today it is a requirement for consumers to be able to visually inspect goods; that all agreements must be in writing; that consumers must be given notice of legal action against them, this includes the rendering of services by attorneys – many never thought this would be included, in the Act but the definition of ‘services and goods’ does indeed make such a provision. The CPA also brought about some changes to “trading as” names. In the past, one could just buy a company off the shelf and go into business. Now however, should you have a company or close corporation e.g. EXPRESSO CC trading as HARMONY GOLD PROPERTY, then the name “HARMONY GOLD PROPERTY” must now also be registered.Companies need to be aware that their refund and marketing policies need to be revisited to meet the criteria of the CPA, e.g. competitions must now be structured according to the Act to ensure consumers are not “exploited”. So, common adverts such as ‘make a call at R1.50 and win a car’ have been stopped, as it implies something untrue. Furthermore the courts are required to interpret the CPA in favour of the consumer. The CPA has put more rights in place for consumers. Service providers have to abide with changes brought about by the Act or they stand to face the consequences thereof.

Adv Hennie v Rensburgadvhvr4580@gmail.com www.legalissues.co.za

A CLOSER LOOK AT THE CONSUMER PROTECTION ACT 68 OF 2008

INDUSTRY CONSUMER

An official meeting was held on the 7th of Feb 2012 between ABSA and the Alliance of Professional Debt Counsellors. They met to discuss problems facing the debt review industry and concerns regarding ABSA’s service.Mr. Paul Nieuwoudt of AllProDC, assisted by Mrs. A Pretorius, met with among others the new Manager of Business Partner Relations, Grace Nkomo (Featured in the Jan 2012 issue of Debtfree DIGI). The AllProDC representatives described her as being “on top of her game and very well informed.”The meeting was said to be “fruitful” and ABSA was informed of the more than 60 debt counsellors on the Concerned Debt Counsellor Forum who are considering a joint group complaint in regards to the recent increase in termination notices received. AllProDC are saying that many of these 86(10) termination notices tend to be unlawful or unfounded. More than 500 complaints could originate from the 60 debt counsellors who are considering the joint complaint. ABSA was shocked to hear this. Especially in view of their recent drive to remove backlogs and increase turn-around times etc. They have encouraged these Debt Counsellors to bring their concerns to ABSA through the correct channels. They have stated that even

though ABSA members might be active on the concerned DC forum, they intend to use the forum “as a communication channel and information sharing” platform, rather than complaints handling.AllProDC are currently collecting complaints from members of their association as well as other DC’s (belonging to DCASA or who maybe do not belong to any association) to be handed to ABSA in bulk.AllProDC have said that should ABSA fail to meet their deadline (to be announced) and resolve the complaints, they will escalate matters to NDMA and NCR for further investigation. ABSA have urged Debt Counsellors to use their established communication entry points and complaints process since they feel these will afford the speedy resolution of issues.ABSA entry points details: Email: debtreviewqueries@absa.co.zaShould there be no response from these then matters can be escalated to the Service Fulfillment Manager email box: Debtreviewmanager@absa.co.zaThe meeting was described by AllProDC as “ground breaking” and “a triumph for the debt counselling industry”. ABSA say they value the role played by Debt Counsellors and would like to maintain a positive working relationship with all key industry role players.

ABSA & AllProDC Meeting February 2012

INDUSTRY

DEBT COUNSELLING

AA Debt Counselling CentreAnthea JohannesNCRDC531Tel: +27 (0) 21 982 0522Cell: +27 (0) 84 402 7032

Alan Watts NCRDC 962NCR registered Debt Counsellor Tel: 084 4448439 Fax: 086 6501954alan@active-debt-counselling.co.zawww.active-debt-counselling.co.za

Central SA Debt Counsellors082 950 7806Fax: 086 563 1621

Consumer AssistJohann VermeulenTel: 0861 628 628

Credit Matters021 431 9100info@creditmatters.co.za

CS Debt CounsellingBernidene Smith NCRDC 764057 352 4115/352 5000Welkom - Free state

Darran ManikamNCRDC704debt@mailbox.co.za

Debtbusters0861 663 328 (NO DEBT)

Debt Budgetph. 021 701 7744

Debt Solve Debt CounsellorsOffice: 033 397 0945

DEBTINCNCRDC’s 1071, 1188, 1189.Tel: (022) 713-2021Fax: (022) 713-2028Share Call: 0861 20 21 20E-mail: Info@debtinclusive.co.zaWebsite: www.debtinclusive.co.zaSMS: HELP to 35075

DebtSafe0861 100 999

Debt RehabColleen Van Wyk(BCom, LLB)Debt Counsellor NCRDC2619Tel: 083 290 0848Tel: 011 740 7374Fax: 086 716 9694Website: http://debtrehab.co.za

Debt RescueNeil RoetsNCR DC 474Cell: 083 644 7406Tel: 0861 800 009Fax: 086 523 0617E-mail: admin@debtrescue.co.zawww.debtrescue.co.za

Durban Debt Counselling ServicesSuite 112, 1st floor Union Club Building353 Sm ith StreetDurban, 4001Tel: 031 301-7893Fax: 031 301-5809phumla.ngema@telkomsa.net

Debt Counselling South AfricaCape Town BranchTel: 021 919 66 94Rod De WittNCRDC831Visit: www.debtcounsellingsa.co.za

Debt Knowledge Debt Counselling082 379 2337

Debtonators041 585 0276

Fincorp debt Counsellors ccCecilia Zwarts fincorpdc@yahoo.com

Holistic Debt Counsellorsinfo@holisticdc.co.za

Helpdesk Debt CounsellorsAllan HoffmanTel: 0861 000 754

Help-U-Debt (Vaal Triangle) WanineTel: 082 445 3967

Help-U-Debt (Potchefstroom)Madra083 390 3275

Help-U-Debt (Parys)Marilouise082 920 6249

SERVICE DIRECTORY

Help-U-Debt (Vanderbijlpark)Herma083 320 8303

MG Consulting NCRDC 1403Strand - Helderberg AreaTelkom : 021 853 4537 Mobile Phone: 082 450 7459 / 082 782 0595 Fax Number: 0866 220 690E-Mail: info@mgconsulting / cambouris.christina@gmail.comwww.mgconsulting.co.za

NDA Debt CounsellorsYour Trusted Debt CounsellorsGary Williams (NCRDC 143)Tel: 034 315 3880 Fax: 086 612 4112gary@ndad.co.za www.ndad.co.za

Think Green Debt CounsellingSandi Pauwsandipauw@mweb.co.zaTel : 012 991 6638Cell : 082 460 7800Fax : 086 219 2615

Incentive Debt Counselling“Paving the way to a Debt Free Tommorrow”Darran Manikam NCRDC704Tel: (031) 409 9379Fax: (031) 409 1327Cell: 0845898286Branches: Phoenix and Shallcross

Indigo debt counsellors CCTel: 087 808 9734 Fax: 086 580 8675 indigodc@iburst.co.za

Zuné Coetzer Debt CounsellorsNCRDC 159924 van der Stel StreetDan PienaarBloemfonteinTel: 051-4364515Fax: 086 5870 845Email: zunecoetzer1@gmail.com

BORDER REGION:

DRS BEACON BAYJohan PretoriusCell: 082 324 4038Office: 043 748 1139

DRS BUFFALO CITYHerman MariasCell: 082 378 3743Office: 043 7210652

DRS KING WILLIAMS TOWNHerman MaraisCell: 082 378 3743Email: herman@drssa.co.za

DRS CRADOCKOffice: 043 721 0652

DRS QUEENSTOWNHerman Marais Cell: 082 378 3743 Email: herman@drssa.co.za

DRS MTHATHAHerman Marais Cell: 082 378 3743 Email: herman@drssa.co.za

EASTERN CAPE:

DRS ALBANYOffice: 041 373 9693Email: dcfull@drssa.co.za

DRS ALGOAMarius WeyersCell: 083 497 3219Email: marius@drssa.co.za

DRS BOND CHOICE P.E.Andrea AtkinsonOffice: 041 393 7000Email: andrea.atkinson@drssa.co.za

DRS CENTRAL EXPRESSDerryn FishOffice: 041 373 9693586 2020Email: derrynfish@drssa.co.za

DRS DESPATCHIsabe LandmanCell: 072 337 3328Office: 041 933 1189Email: isabe@drssa.co.za

DRS HUMANSDORPMorne SteynCell: 083 298 8182Office: 042 291 0135Email: Morne@drssa.co.za

DRS NKONKOBE (Fort Beaufort)Bernadine von der DeckenCell: 083 2859289Office: 046 645 1898Email: bernadine@drssa.co.za

DRS KIRKWOODKeith Le RouxCell: 073 207 1675Office: 041 451 0474Email: keith@drssa.co.za

DRS PORT ELIZABETHDerryn FishCell: 084 515 6135Office: 041 453 8961Email: derryn@drssa.co.za

DRS SIDWELL EXPRESSKeith Le RouxCell: 073 207 1675Office: 041 451 0474Email: Keith@drssa.co.za

DRS SOMMERSET EASTLuther De BruynCell: 082 568 2970Office: 042 243 1107Email: luther@drssa.co.za

DRS UTENHAGELynn LindoorCell: 083 7174 183Email: Lynnl@drssa.co.za

FREESTATE:

DRS GOLDFIELDS (Welkom)Irvin Billy (Derryn Fish)Cell: 072 114 4427Office: 081 319 0083Email: Billy@drssa.co.za

DRS MANGAUNGAmanda JohnsonOffice: 041 373 9693Email: dcfull@drssa.co.za

DRS FOREISTATA EXPRESS (Bloemfontein)Derryn FishOffice: 041 373 9693Email: dcexpress@drssa.co.za

DRS SOUTH FREESTATENelmarie De langeCell: 079 236 3615Office: 053 591 0734Email: nelmarie@drssa.co.za

GARDEN ROUTE:

DRS DE AARVeronique Louw (Derryn Fish)Cell: 076 382 2020Office: 053 631 1189Email: deaar1@drssa.co.za

DRS GEORGEFrancois Van ZylCell: 079 522 1930Office: 044 874 2820Email: francoisv@drssa.co.zaDRS EDEN (Hartenbos)Bruno MertschTel: 042 291 1083/4Email: brunom@drssa.co.za

GAUTENG:

DRS CENTURION EXPRESSAmanda JohnonOffice: 041 373 9693Email: dcfull@drssa.co.za

DRS LYNNWOODJunique JuliusOffice: 012 807 4339Email: lynnwood1@drssa.co.za

DRS PRETORIA EXPRESSBen VermeulenCell: 082 442 8654Office: 012 331 2145Email: bverm@lantic.net

DRS PRETORIA NOORDOffice: 041 373 9693Email: dcfull@drssa.co.za

DRS ROODEPOORT EXPRESSDerryn FishOffice: 041 373 9693Email: dcexpress@drssa.co.za

DRS RUSTENBURG Amanda JohnsonOffice: 041 373 9693Email: dcfull@drssa.co.za

KWA ZULU NATAL:

DRS GREYVILLEVyas JuggernathCell: 083 206 0300Office: 031 309 8716Email: vyas@drssa.co.za

DRS KOKSTADMelanie LouwrensCell: 083 269 0424Office: 039 727 1430Email: melanie@drssa.co.za

DRS MORNINGSIDE DURBANErica Mtshali (Amanda Johnson)Cell: 076 578 8660 Office: 031 301 5990email ericah@drssa.co.za

DRS PHOENIXVyas JuggernathCell: 083 206 0300Office: 031 309 8716Email: vyas@drssa.co.za

DRS PIETERMARITZBURGSanele ZuluCell: 083 543 3487Office: 033 394 8319Email: sanele@drssa.co.za

WESTERN CAPE:

DRS BELLVILLEPatricia BekkerOffice: 021 948 8523 / 4Email: patricia@drssa.co.za

DRS DIAMONDClive PalmerOffice: 021 421 8563Email: clive@drssa.co.za

DRS TYGERBERGCraig LakeyCell: 082 627 0957Office: 021 945 4062Email: craiglakey@drssa.co.za

DRS WEST COASTMarius CoetzeeCell: 082 978 4407Office: 022 713 3766Email mariusc@drssa.co.za

DRS SALDANHAMarius CoetzeeOffice: 022 713 3766Email: mariusc@drssa.co.za

DRS SOLUTIONSChristelle de VilliersCell: 084 586 5600Email: cdv@vodamail.co.za

U-Win Debt CounsellorsCoreli Roos - NCR DC 509Aliwal North, Burgersdorp, Bethulie, GariepDam, Smithfield, SpringfonteinCell:079 626 66241croos@global.co.za

Rihanyo Debt Counselling(012) 804 50 57

SUPPORT SERVICES

Business and Personal Website and Software, Design and Development Services. Contact Number: +27 76 382 0933 Email: info@myecommerce.co.za Web: http://myecommerce.co.za

Staff Line Ndizani Executive RecruitmentCell no: 083 3028163Direct Line: (011) 468 - 2150E- Mail: saki@staffline.co.za

Information resources & serviceswww.thedci.co.za

DesigntimesSouth Africa’s creative resourcewww.designtimes.co.za

TRAINING

Compuscan Academy 0861 51 41 31www.compuscanacademy.co.za

FINANCIAL

ABSA Customer Debt Repair Line0861 005 901

Credit Ombudsman0861 662837

Experian011 799-3400 debtcounsel@experian.co.za

Eric StresoFinancial PlannerB Juris LL B CFP MBATel: 0833273358Fax: 086 612 7912Fair Debt0829019788 or 012-3772558ray@fairdebt.co.za

PACFIN Financial Solutions Head OfficeTel: +27 11 9757445Fax: 086536878336 Van Riebeeck roadKempton Park 1619pieter@pacfin.co.zaMonte Carlo BuildingNo 8 VoortrekkerstreetKempton Park 1619

Kempton ParkContact: Reyno CoetzeeTel: +27 11 3945363Fax: 0866048002Cell: +27 73 3690884kemptonpark@pacfin.co.za

Boksburg / GermistonContact: Armand PosthumusTel: +27 11 8921911Fax: 0865620378

NelspruitContact: Ann BakerTel: +27 13 7415559Fax: 0880 1374 15559Cell: +27 82 9024236jeleroux@telkomsa.netSpringsContact: Wynand MclachlanTel: +27 11 8113728Fax: +27 11 8113728Cell: +27 83 2754014/5wynmc@telkomsa.net

Gooseberry Business AdvisoryTel: 012 644 0589

NedbankDebt Rehabilitation & Recoveries Services0860 109 279

STD BankDebt review HelplineTelephone: 0861 111 402 TransUnion0861 482 482

ThinkmoneyFinancial comparison websiteContact: Gareth MountainTel: 079 0996 798www.thinkmoney.co.za

WIZARD Vereeniging Making Mortgage MagicWanine SmitTel:+27 16 454 1132Fax:+27 86 686 3678 Cell:+27 82 445 3967 www.wizard.za.com

FINANCIAL PLANNING

Eric StresoFinancial PlannerB Juris LL B CFP MBATel: 0833273358Fax: 086 612 7912

LEGAL

Brett Carnegie AttorneysTel: +27 (21) 4470332 Fax: +27 (21) 4470338 Mobile: +27 (0)82 320 6099 www.carnegielaw.co.zaSuite 23(B) Unit 8 Waverley Business Park Mowbray 7700

Karen van Staden Tel: 012 998 9117 / 012 993 2132Fax: 086 721 6467 / 086 662 1153Email: karen@hauptearle.co.zaoffice@hauptearle.co.zawww.hauptearle.co.za

Scheepers AttorneysGerhard Scheepersschlaw@iburst.co.za

LUCID AttorneysTel: 011 880 1100Fax: 011 880 1101Email: info@lucidsa.comwww.lucidliving.co.za/attorney

Ludick Attorneysbev.ludickattorneys@gmail.com

Prinsloo & AssociatesAttorneys and conveyancersNanika Prinsloo Farm Bergamot, Paarl 7620P O Box 6199, Paarl 762014 Laing Street, Barrydale 6750Cell: 072-8558-106Fax: 086-623-5986nanika@vodamail.co.zawww.empowerlaw.co.zaRM Brown and Associates 601 Pier House, 13 -17 Heerengracht, Cape TownDocex 138 Cape Town t: 021 431 9127 f: 021 425 0875 e: lodea@rmbrown.co.zaAgiliti CCColleen Van Wyk(BCom, LLB)Tel: 083 290 0848Tel: 011 740 7374Fax: 086 716 9694Website: http://agiliti.co.za

CREDIT BUREAUS

Compuscan 0861 514 131www.compuscan.co.za

Computer Profile Bureau0861 28 7328www.c-p-b.co.zaExperianwww.experian.co.zaBusiness- 0861 63 60 70 Consumer- 0861 10 5665

Is it time to expand your Debt Counselling practice?

Do you need specialist Attorneys with a national footprint?

Do you need expert advice on how to protect your practice and your clients?

Are you informed about recent statutory and legal developments within the industry?

Attorneys servicing individual needs

Pretoria: +27(0)12 998 9117 www.hauptearle.co.za Nelspruit: +27 (0)13 752 7084

Micro Lenders Credit Bureau 0861 28 7328 www.mlcb.co.za

TransUnion 0861 886 466www.transunion.co.za

XDS 0860 937 000 www.xds.co.za

OTHER

Association of Debt Recovery Agents: 011 781 3337 www.adraonline.co.za

Banking Ombud0860 800 900 www.obssa.co.za

Credit Bureau Association011 463 8211www.cba.co.za

Credit Providers Association011 789 6825 www.cpa.org.za

Department of Trade and Industry0861 843 384 www.thedti.gov.za

Financial Advisory and Intermediary Services Ombud012 470 9080 www.faisombud.co.za

Financial Services Board012 428 8000 www.fsb.co.zaFurniture Traders Association 011 789 6770

Legal Resources Centre011 836 9831 www.lrc.org.za

Long Term Insurance Ombud021 657 5000 www.ombud.co.za

Micro Finance South Africa012 345 0809 www.mfsa.net

Motor Industry Ombud012 841 2945 www.miosa.co.za

National Credit Regulator0860 627 627

Ombud for Short term Insurance011 726 8900 www.osti.co.za

Pension Funds Adjudicator021 674 0209 www.pfa.org.zaSouth African Fraud Prevention0860 101 248 www.safps.org.za

The Banking Association011 370 3500 www.banking.org.za

SA FRAUD PROTECTION SERVICE (FREE SERVICE)www.safps.org.za0860 101 248

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