Debt-Counselling-Services F.A.Q.
Debt Counselling | Frequently Asked Questions
Is this like a loan?
No, this is a full process in which your current debts are re-structured in such a way that you can afford to pay it back within your financial means.
Will I be listed on the Credit Bureau by Help with Debt?
Yes, once you have completed your application and paid your initial R50 application fee, you will be listed onto the system. This also means that all your credit providers will be notified that you are undergoing the debt review process and that they may not lay a claim to your assets.
What do you mean by the payment pro rata basis?
The pro rata basis means that the creditor that you make the largest monthly instalment to, receives the larger portion of your monthly payment.
Can I become part of the debt counselling process if I already have judgement against me?
Yes, But Please ensure we know your complete situation when you contact us.
Does it make difference if I own my home or not?
No, it makes no difference.
Will the re-calculated payment plan by Help with Debt cover all my debt?
Yes, we will deal with all your unsecured and secured loans. When we look at your finances, we will make appropriate allowance for you to be able to afford your
day-to-day expenses before we calculate how much you can afford to pay your creditors.
How long does it take for my situation to improve? Immediately?
Yes! You will immediately benefit from a realistic budget which will allow your creditors to be paid at a rate which is affordable to you.
Will I have to attend an interview?
No. We treat all our clients with trust and respect. No one from our office will visit you at your work and we will only contact you when it is necessary.
Will my employer and work colleagues find out taht I am under debt counselling?
No, we never contact clients at work unless asked to do so. Your affairs will be dealt with in the strictest confidence.
Can I still use my credit and store account cards?
Once we enter into negotiations on your behalf all credit and store cards will have to be destroyed and returned to the companies concerned, this shows your commitment that you are serious about sorting out your debt and freeing yourself of this burden.
Can creditors refuse to accept lower payments under the debt counselling proposal?
Creditors do not have to accept any offers of repayment below the contracted minimum.
However, it is our experience that they are prepared to accept reduced payment offers where we are able to demonstrate that the offer is reasonable and that you are committed to repay your debt through the debt counselling process.
Will I still receive a default notices?
By lowering your monthly payments to your creditors, you will be in default of your original agreements with your creditors and as a result may be issued a default notice. Creditors send out Default Notices in order to protect their legal position.
Will creditors continue pursuing and harassing me for payments?
Your creditors are obliged, according to the National Credit Act, to stop pursuing you when you've been placed under the debt review process.
Let them know that we are your debt counsellors and that we will be acting on your behalf. You should forward any letters and queries to us to deal with it on your behalf.
When can I start on the Debt Counselling plan by Help with Debt?
You may join the plan immediately subject to completing our forms and make an appointment to see one of your friendly and professional advisors.
How long will I have to remain under Debt Counselling?
You will not have to sign any lengthy contracts and will be free to terminate our services at any point. However, your status with the credit bureaus will state that you are still under debt review until all your debt has been cleared and/or paid up to date
I've been summoned to court, does debt counselling cover this?
No, however it is our experience that attorneys and creditors will respond favourably to the debt review programme and agree to have this included in the debt review process.
Can a debt counsellor help me if I had loans or credit agreements prior to 1 June 2007?
Yes! It is your financial situation TODAY that is taken into account.
Once I've cleared all my debt will you remove my name from the credit bureau?
YES we will.
More Frequently Asked Questions
WHAT IS THE NATIONAL CREDIT ACT?
It promotes and advances social and economic welfare, promotes fair and accessible credit market and protects consumers.
WHAT ARE MY RIGHTS AS A CONSUMER?
• right to confidentiality
• right to protection against discrimination
• right to reasons why credit has been refused
• right to plain, understandable language
• right to receive documents
• right to apply for debt review and rearrangement of obligations
• right to cooling-off
• right to statements of accounts
HOW DOES THE ACT PROTECT ME AS A CONSUMERS?
• The Act regulates the way credit will be granted, and protect consumers from reckless credit granting and over-indebtedness. A creditor may not grant you any credit if you cannot afford more credit. A creditor must do an investigation at the credit bureau before granting any credit to you.
• If you are over-indebted the Act provides a new debt relief measure called ‘debt counselling’.
• The Act prescribes fixed interest rates and fees on credit.
HOW DOES DEBT COUNSELLING WORK?
• If a person cannot pay all his/her instalments timeously and has enough money left over to pay for necessary living expenses, he/she is most probably over-indebted.
• Such a consumer can be referred by the Court or may apply to a debt counsellor to be declared over-indebted.
• The debt counsellor must notify all credit providers and credit bureaus of the application then evaluate the consumers indebtedness.
• If the debt counsellor determines that the consumer is over-indebted, the counsellor may recommend to the Magistrate’s Court that one or more agreements be declare reckless and/or that the consumers repayments be rearranged by extending the contract and make the payments smaller. If the creditors all agree, this procedure can be voluntary and no court order is necessary.
• A creditor who receives notice of court proceedings for over-indebtedness or notice from a debt counsellor of debt review, MAY NOT ENFORCE the agreement until a determination by the court or debt counsellor has been made.
• A consumer may not make any further debts until all debts have been paid in full in terms of the rearrangement or the debt counsellor or Court decided that the consumer is not over-indebted.
WHAT KIND OF DEBT CAN BE PLACED UNDER REVIEW?
Nearly every credit agreement, BUT
• contracts such as stokvel, insurance policies, leases, immovable property, dishonoured cheques
AND
• where a credit provider has already proceeded with enforcement on ground of default (e.g. judgements, emolument attachment order, etc.)
WILL INTEREST STOP WHEN I AM UNDER DEBT REVIEW?
NO!! Interest and costs can still be added on your accounts by creditors, unless they agree otherwise.
WILL I BE LISTED AT THE CREDIT BUREAU IF I AM UNDER ‘DEBT REVIEW’?
YES!!! But your name will be cleared as soon as all the debt under review is settled in full and the debt counsellor issues you a clearance certificate.
HOW LONG WILL I BE UNDER DEBT COUNSELLING FOR?
It will all depend on the repayment amount as rearranged with creditors. The higher your outstanding debt and the lower your repayment monthly – the longer it will take to satisfy all obligations. if your payment monthly to the creditors is less than the monthly interest, you be under debt review for a very long period.
HOW WOULD I BE CERTAIN MY DEBT COUNSELLOR IS REGISTERED?
• a registered debt counsellor must display the certificate in their premises where they provide their debt counselling services from
• it must reflect the registered status and number
• the information can also be verified on the NCR website – www.ncr.org.za
CAN I BORROW MONEY FROM MY DEBT COUNSELLOR?
• NO!! Your debt counsellor may not borrow you any money. It is prohibited in terms of the Act. If your debt counsellor does lend money to you, he/she can be deregistered.
WILL I ONLY PAY R50,00 TO MY DEBT COUNSELLOR?
• NO!! The Act provides that the debt counsellor may require you to pay R50 BEFORE accepting your application for debt review, other fees or costs are not yet prescribed and must be agreed between you and your debt counsellor.
NB!!
ASK YOUR DEBT COUNSELLOR EXACTLY what his/her charges are BEFORE you sign any documentation and ask for a copy of charges as explained to you.
DO I HAVE TO MAKE PAYMENTS TO MY CREDITORS WHEN I REGISTER FOR DEBT REVIEW AND THE DEBT COUNSELLOR IS STILL IN THE PROCESS OF NEGOTIATION WITH CREDITORS AND NO ORDER WAS MADE?
• ‘YES’ because of the fact that your registration for debt review does not stop interest it be in your best interest to make payments as far as possible, even if it is not the whole instalment.
• ‘NO’ the Act does not prescribe or require you to make payments during the first 60 day’s after your credit provider received notice by the debt counsellor or Court of the application for debt review. BUT penalty interest will be added to your account.
DO I FIRST HAVE TO NEGOTIATE WITH MY CREDITORS BEFORE I GO TO A DEBT COUNSELLOR?
NO!! You may negotiate with your creditors yourself BUT you cannot be forced to negotiate with them. You have got the right to go to a registered debt counsellor to assist you.
WILL THE ‘HIRE PURCHASE’ CREDIT PROVIDER SUCH AS A FURNITURE STORE REPOSSESS THE GOODS IF THE GET NOTICE OF THE DEBT REVIEW FROM MY DEBT COUNSELLOR?
NO!! As soon as a credit provider receives notice from the debt counsellor ‘debt freezing’ starts, thus they are prohibited to take legal Action until a determination was made by the debt counsellor or Court, UNLESS, they had already taking legal action before you registered for debt review.
IF I GET A SALARY INCREASE OR MY FINANCIAL CIRCUMSTANCES CHANGE FOR THE BETTER, MY I PAY HIGHER INSTALMENTS TO MY CREDITORS AS NEGOTIATED ORDERED BY COURT IN THE DEBT REVIEW?
YES!! The higher payments you make the sooner you will finish your debts and get your clearance certificate from the debt counsellor and the sooner your certificate, the sooner your record will be expunged from the credit bureau.
WHY MUST I OPEN A SAVINGS ACCOUNT WHEN I GO UNDER DEBT REVIEW?
Sometimes Credit Cards or Cheque Accounts are frozen by Banks, or money grabs done on salaries for arrear accounts.
WHAT HAPPENS TO MY DEBT ORDERS GOING OFF OF MY ACCOUNT?
You need to stop all debt orders going off your account in writing at the bank as well as with the companies that you have them with. You need to arrange new debit orders to be deducted from the new account. (i.e. for insurances, medical aid, etc. – NOT FOR DEBT)
Debt-Counselling-Services
If you have any questions we have not answered here then Kindly Contact Us and we will assist and answer where possible.
http://www.helpwithdebt.co.za
Sunday, May 30, 2010
debt counselling Gauteng
Debt review and debt counselling Pretoria
Help with debt assist clients in Alphen Park, Arcadia ,Constantia Park,DieWilgers,Eastmead,Eastwood,Elarduspark,Equestria,Erasmuskloof,Erasmusrand,Faerie Glen,Garsfontein,Groonkloof,Grootfontein,Hatfield,Hazelwood,Hillcrest,La Montagne, Lynnwood Park, Lynnwood Glen, Lynnwood Manor, Meyerspark, Mooikloof, Monument Park,Moreletapark,Murrayfield,Newlands,Rietvalleirand,Riviera,Rietondale,Silver Lakes, Sterrewag, Wapadrand, Waterkloof, Waterkloof Glen, Waterkloof Park, Wingate Park,Woodhill,Woodlands,Annlin,Montana,Erasmia,Clubview,Claudius,Laudium,Valhalla,Booysens,Daspoort,Elandspoort,Hermanstad,Kirkney,Kwaggasrand,Phillip Nel Park, Pretoria Gardens, Rosslyn, Salvokop, Suiderberg, The Orchards, Theresapark, Mountain View, Weskopies, Wespark
and the rest of South Africa
Before a debt management company such as Help with Debt can assist any client with their debt problems, the process of debt review needs to be undertaken. Debt review assists the debt management company in identifying the debt problem at hand, and finding the suitable solution.
Help with Debt performs a thorough debt review process on all their clients, ensuring that all needs are identified, and an accurate solution created.
Help with Debt offers the following to their clients who are searching to undergo debt review:
• No upfront fees
• No additional loans
• One very affordable monthly payment to creditors
• No interviews unless you want to have a free consultation
Contact Help with Debt today, and let them assist you through their debt review services.
Contact Details:
Contact Number: 072 642 6641
Fax Number: 086 519 4004
Email:info@helpwithdebt.co.za
Website:http://www.helpwithdebt.co.za
Help with debt assist clients in Alphen Park, Arcadia ,Constantia Park,DieWilgers,Eastmead,Eastwood,Elarduspark,Equestria,Erasmuskloof,Erasmusrand,Faerie Glen,Garsfontein,Groonkloof,Grootfontein,Hatfield,Hazelwood,Hillcrest,La Montagne, Lynnwood Park, Lynnwood Glen, Lynnwood Manor, Meyerspark, Mooikloof, Monument Park,Moreletapark,Murrayfield,Newlands,Rietvalleirand,Riviera,Rietondale,Silver Lakes, Sterrewag, Wapadrand, Waterkloof, Waterkloof Glen, Waterkloof Park, Wingate Park,Woodhill,Woodlands,Annlin,Montana,Erasmia,Clubview,Claudius,Laudium,Valhalla,Booysens,Daspoort,Elandspoort,Hermanstad,Kirkney,Kwaggasrand,Phillip Nel Park, Pretoria Gardens, Rosslyn, Salvokop, Suiderberg, The Orchards, Theresapark, Mountain View, Weskopies, Wespark
and the rest of South Africa
Before a debt management company such as Help with Debt can assist any client with their debt problems, the process of debt review needs to be undertaken. Debt review assists the debt management company in identifying the debt problem at hand, and finding the suitable solution.
Help with Debt performs a thorough debt review process on all their clients, ensuring that all needs are identified, and an accurate solution created.
Help with Debt offers the following to their clients who are searching to undergo debt review:
• No upfront fees
• No additional loans
• One very affordable monthly payment to creditors
• No interviews unless you want to have a free consultation
Contact Help with Debt today, and let them assist you through their debt review services.
Contact Details:
Contact Number: 072 642 6641
Fax Number: 086 519 4004
Email:info@helpwithdebt.co.za
Website:http://www.helpwithdebt.co.za
Saturday, May 29, 2010
Debt review and debt counselling Limpopo
Die nuwe Nasionale Kredietwet (No.34 van 2005) het op 1 Junie 2007 in werking getree. Die Wet stel nuwe vereistes aan kredietverskaffers, wat beslis 'n uitwerking op kredietverlening deur NWK gaan hê. In hierdie artikel word gepoog om te verduidelik hoe hierdie wetgewing die NWK-klant raak. Die Nasionale Kredietwet vervang die Wet op Kredietooreenkomste en die Woekerwet.
Die hoofdoelstellings van die Wet is die volgende:
Verhoed roekelose kredietverlening;
voorkom oormatige skuldlas by landsburgers;
verseker volle openbaarmaking van inligting aan kredietopnemers;
bied beskerming aan kredietopnemers teen onregverdige optrede of wanpraktyke deur kredietgewers en kredietburo's;
verskaf riglyne met die daarstelling van alternatiewe vir dispuutoplossings; en
stel prosedures daar om skuldhersiening en skuldherstrukturering te fasiliteer.
Watter transaksies val onder die Wet?
Bykans alle armlengte-krediettransaksies val onder die Wet, insluitend huurkope. Sommige van die belangriker uitsonderings is die volgende:
Insidentele krediet ('n voorbeeld hiervan is 'n maandrekening waar die rekening dertig dae na staat betaal word sonder dat rente gehef word).
Skuld wat ontstaan as gevolg van 'n tjek wat vir betaling aangebied en deur die bank gedishonoreer word.
Wie val onder die Wet?
Alle entiteite wat krediet opneem val onder die Wet, met die uitsluiting van:
beslote korporasies;
trusts met drie of meer trustees;
maatskappye;
vennootskappe; en
verenigings.
'n Voorwaarde is egter dat die voormelde entiteite (in die Wet word verwys na regspersone) 'n batewaarde of omset van R1 000 000 of meer het. Privaatpersone val dus almal onder die werking van die Wet. Indien die regspersone 'n batewaarde of omset van minder as R1 000 000 het, maar 'n kredietooreenkoms aangaan van R250 000 of meer, val die transaksie ook buite die Wet. Indien 'n persoon borg teken vir 'n kredietopnemer wat onder die Wet val, word die borg hanteer asof hy die hoofskuldenaar is en val hy ook onder die Wet. Die borg se finansiële posisie moet dus ook in terme van die Wet geëvalueer word.
Kredietooreenkomste
Die ooreenkoms tussen die partye is onderworpe aan streng voorskrifte. Die belangrikste hiervan is die volgende:
Die ooreenkoms moet in verstaanbare taal geskryf wees.
Misleidende voorwaardes word verbied.
Voorwaardes waar gemeenregtelike regte van die kredietopnemer weggeneem of beperk word, is ongeldig.
Regte wat weggeneem word van die kredietopnemer wat deur die Wet daargestel word, is ongeldig.
Rentekoerse, fooie en kredietversekering moet duidelik aangetoon word.
Differensiasie tussen rente op lopende en agterstallige bedrae in dieselfde ooreenkoms word verbied. 'n Nuwe ooreenkoms moet in elke geval gesluit word. 'n Voorbeeld hiervan is agterstallige paaiemente by huurkope.
Wysiging van kredietooreenkomste
Verlaging van kredietlimiete kan deur beide partye gedoen word. Tydelike verhogings kan op aanvraag deur die kredietopnemer gedoen word, op voorwaarde dat die kredietlimiet weer binne 'n ooreengekome tyd herstel word na waar dit was. Alle ander verhogings van kredietlimiete mag slegs gedoen word nadat 'n nuwe evaluering van die kredietopnemer se finansiële posisie gedoen is. Wysigings kan slegs deur die klant self aangevra word.
Kwotasie
Die kredietgewer moet 'n voorooreenkomsstaat of kwotasie aan die kredietopnemer verskaf waarin rentekoerse, koste, fooie en kredietversekering uiteengesit word. Die kredietgewer is vir vyf dae daaraan verbind waarbinne die kredietopnemer die kwotasie kan aanvaar. Die kredietopnemer kan egter ook die kwotasie onmiddellik aanvaar indien hy/sy dit so verkies.
Groter deursigtigheid dra dus by tot 'n meer ingeligte besluit deur die kredietopnemer.
Regte van kredietopnemers
Verskeie regte word aan kredietopnemers gegee, waarvan die volgende enkele voorbeelde is:
Die reg om aansoek te doen vir krediet, welke aansoek ooreenkomstig die kredietgewer se normale beleid oorweeg moet word.
Gebruik van die taal van jou keuse.
Die reg om te weet hoekom 'n aansoek afgekeur is.
Die reg om onder sekere omstandighede aansoek te doen vir skuldhersiening en herstrukturering van die skuldlas.
Die reg tot 'n afkoelperiode van vyf dae by huurkope indien die transaksie nie by die kredietgewer se geregistreerde besigheidsplek plaasgevind het nie.
Die reg om huurkoopitems vrywillig terug te gee.
Die reg tot verkryging van volledige inligting aangaande die krediettransaksie, relevante dokumentasie en state.
Die reg om inligting van kredietburo' s se swartlys te laat verwyder sodra die skuld betaal is.
Beskerming teen onreëlmatige bemarking.
Die reg tot vertroulikheid insake inligting.
Oormatige skuldlas
'n Kredietopnemer het 'n oormatige skuldlas indien hy nie sy skuld kan betaal in terme van sy kredietooreenkomste nie. Prosedures kan in so 'n geval deur die kredietopnemer gevolg word vir skuldhersiening en strukturering.
Roekelose krediet
'n Kredietverskaffer is skuldig aan roekelose kredietverskaffing indien hy onder die volgende omstandighede krediet sou toestaan:
'n Behoorlike ondersoek aangaande die kredietopnemer se finansiële posisie is nie gedoen nie.
Die kredietopnemer het nie die algemene risiko's, koste of verpligtinge van die ooreenkoms verstaan nie.
Die aangaan van die ooreenkoms laat die kredietopnemer met 'n oormatige skuldlas.
'n Groter verpligting word op kredietgewers geplaas rakende die insameling en verifiëring van inligting en die evaluasie daarvan. Groter beskerming word sodoende aan skuldopnemers gebied.
Afdwing van ooreenkomste
Die Wet maak voorsiening vir ander metodes van dispuutoplossing behalwe die normale skuldinvordering. Voorsiening word gemaak vir liggame en partye soos :
die Nasionale Verbruikerstribunaal;
skuldberaders;
'n ombudsman;
verbruikershowe; en
alternatiewe dispuutoplossings-agente.
Die gevolg van die nuwe Kredietwet is dat die normale prosedures van skuldinvordering drasties verander. Dit verg derhalwe meer omvangryke administrasie en ook meer van die aansoeker se tyd. Met die tandekrypyne van die eerste aansoekseisoen na die bekragtiging van die Wet grootliks agter die rug, beywer NWK hom om sy relevante prosesse voortdurend te monitor en waar nodig te verfyn. Indien veranderings aan die Wet in die toekoms sou plaasvind, sal NWK se kredietklante beslis daaroor ingelig word.
Die hoofdoelstellings van die Wet is die volgende:
Verhoed roekelose kredietverlening;
voorkom oormatige skuldlas by landsburgers;
verseker volle openbaarmaking van inligting aan kredietopnemers;
bied beskerming aan kredietopnemers teen onregverdige optrede of wanpraktyke deur kredietgewers en kredietburo's;
verskaf riglyne met die daarstelling van alternatiewe vir dispuutoplossings; en
stel prosedures daar om skuldhersiening en skuldherstrukturering te fasiliteer.
Watter transaksies val onder die Wet?
Bykans alle armlengte-krediettransaksies val onder die Wet, insluitend huurkope. Sommige van die belangriker uitsonderings is die volgende:
Insidentele krediet ('n voorbeeld hiervan is 'n maandrekening waar die rekening dertig dae na staat betaal word sonder dat rente gehef word).
Skuld wat ontstaan as gevolg van 'n tjek wat vir betaling aangebied en deur die bank gedishonoreer word.
Wie val onder die Wet?
Alle entiteite wat krediet opneem val onder die Wet, met die uitsluiting van:
beslote korporasies;
trusts met drie of meer trustees;
maatskappye;
vennootskappe; en
verenigings.
'n Voorwaarde is egter dat die voormelde entiteite (in die Wet word verwys na regspersone) 'n batewaarde of omset van R1 000 000 of meer het. Privaatpersone val dus almal onder die werking van die Wet. Indien die regspersone 'n batewaarde of omset van minder as R1 000 000 het, maar 'n kredietooreenkoms aangaan van R250 000 of meer, val die transaksie ook buite die Wet. Indien 'n persoon borg teken vir 'n kredietopnemer wat onder die Wet val, word die borg hanteer asof hy die hoofskuldenaar is en val hy ook onder die Wet. Die borg se finansiële posisie moet dus ook in terme van die Wet geëvalueer word.
Kredietooreenkomste
Die ooreenkoms tussen die partye is onderworpe aan streng voorskrifte. Die belangrikste hiervan is die volgende:
Die ooreenkoms moet in verstaanbare taal geskryf wees.
Misleidende voorwaardes word verbied.
Voorwaardes waar gemeenregtelike regte van die kredietopnemer weggeneem of beperk word, is ongeldig.
Regte wat weggeneem word van die kredietopnemer wat deur die Wet daargestel word, is ongeldig.
Rentekoerse, fooie en kredietversekering moet duidelik aangetoon word.
Differensiasie tussen rente op lopende en agterstallige bedrae in dieselfde ooreenkoms word verbied. 'n Nuwe ooreenkoms moet in elke geval gesluit word. 'n Voorbeeld hiervan is agterstallige paaiemente by huurkope.
Wysiging van kredietooreenkomste
Verlaging van kredietlimiete kan deur beide partye gedoen word. Tydelike verhogings kan op aanvraag deur die kredietopnemer gedoen word, op voorwaarde dat die kredietlimiet weer binne 'n ooreengekome tyd herstel word na waar dit was. Alle ander verhogings van kredietlimiete mag slegs gedoen word nadat 'n nuwe evaluering van die kredietopnemer se finansiële posisie gedoen is. Wysigings kan slegs deur die klant self aangevra word.
Kwotasie
Die kredietgewer moet 'n voorooreenkomsstaat of kwotasie aan die kredietopnemer verskaf waarin rentekoerse, koste, fooie en kredietversekering uiteengesit word. Die kredietgewer is vir vyf dae daaraan verbind waarbinne die kredietopnemer die kwotasie kan aanvaar. Die kredietopnemer kan egter ook die kwotasie onmiddellik aanvaar indien hy/sy dit so verkies.
Groter deursigtigheid dra dus by tot 'n meer ingeligte besluit deur die kredietopnemer.
Regte van kredietopnemers
Verskeie regte word aan kredietopnemers gegee, waarvan die volgende enkele voorbeelde is:
Die reg om aansoek te doen vir krediet, welke aansoek ooreenkomstig die kredietgewer se normale beleid oorweeg moet word.
Gebruik van die taal van jou keuse.
Die reg om te weet hoekom 'n aansoek afgekeur is.
Die reg om onder sekere omstandighede aansoek te doen vir skuldhersiening en herstrukturering van die skuldlas.
Die reg tot 'n afkoelperiode van vyf dae by huurkope indien die transaksie nie by die kredietgewer se geregistreerde besigheidsplek plaasgevind het nie.
Die reg om huurkoopitems vrywillig terug te gee.
Die reg tot verkryging van volledige inligting aangaande die krediettransaksie, relevante dokumentasie en state.
Die reg om inligting van kredietburo' s se swartlys te laat verwyder sodra die skuld betaal is.
Beskerming teen onreëlmatige bemarking.
Die reg tot vertroulikheid insake inligting.
Oormatige skuldlas
'n Kredietopnemer het 'n oormatige skuldlas indien hy nie sy skuld kan betaal in terme van sy kredietooreenkomste nie. Prosedures kan in so 'n geval deur die kredietopnemer gevolg word vir skuldhersiening en strukturering.
Roekelose krediet
'n Kredietverskaffer is skuldig aan roekelose kredietverskaffing indien hy onder die volgende omstandighede krediet sou toestaan:
'n Behoorlike ondersoek aangaande die kredietopnemer se finansiële posisie is nie gedoen nie.
Die kredietopnemer het nie die algemene risiko's, koste of verpligtinge van die ooreenkoms verstaan nie.
Die aangaan van die ooreenkoms laat die kredietopnemer met 'n oormatige skuldlas.
'n Groter verpligting word op kredietgewers geplaas rakende die insameling en verifiëring van inligting en die evaluasie daarvan. Groter beskerming word sodoende aan skuldopnemers gebied.
Afdwing van ooreenkomste
Die Wet maak voorsiening vir ander metodes van dispuutoplossing behalwe die normale skuldinvordering. Voorsiening word gemaak vir liggame en partye soos :
die Nasionale Verbruikerstribunaal;
skuldberaders;
'n ombudsman;
verbruikershowe; en
alternatiewe dispuutoplossings-agente.
Die gevolg van die nuwe Kredietwet is dat die normale prosedures van skuldinvordering drasties verander. Dit verg derhalwe meer omvangryke administrasie en ook meer van die aansoeker se tyd. Met die tandekrypyne van die eerste aansoekseisoen na die bekragtiging van die Wet grootliks agter die rug, beywer NWK hom om sy relevante prosesse voortdurend te monitor en waar nodig te verfyn. Indien veranderings aan die Wet in die toekoms sou plaasvind, sal NWK se kredietklante beslis daaroor ingelig word.
debt counselling and debt review in south africa, prevent property and vehicle repossession in south africa
debt review
debt counselling
prevent repossession
debt advise
avoiding repossession
repossession law
vehicle repossession
debt law
debt busters
help with debts
stop repossession
help with debt
debt councillors
debt assistance
debt counselling help
debt counsel
debt counselors
debt councilling
debt counselling services
debt councelling
debt counceling
debt consolidators
debit counseling
debt consolidation services
debt consolidation help
consolidating debt
blacklisted
repossession rights
repossession stopped
repossession help
repossession stopper
voluntary repossession
help with repossession
car repossession laws
vehicle repossessions
repossession court order
car repossess
car repossessions
debt reviews
legal debt advice
repossessions stopped
repossession advice
advice on debt
free debt advice
repossessed car
debt consultation
debt assist
debts help
debt councellor
mortgage repossession
debt councillor
bad debt help
debt counselling fees
debt counselling service
stopping repossession
debt councellors
repossession sales
being repossessed
repossession order
debt counseling agency
debt management advice
registered debt counselors
eliminate debt
credit debt counselling
christian debt counseling
online debt counseling
debt reduction services
debt reduction counseling
debt counseling company
credit debt counseling
debt counseling programs
credit debt counseling services
credit card counseling
credit and debt counseling
credit counseling and debt consolidation
credit card debt counseling
credit counselor
credit counseling debt relief
debt settlement services
debt consolodation
debt relief counseling
debt relief consolidation
consolidate my debt
debt consolidation credit counseling
debt consolidations
repossession of house
stop house repossession
debt administration
paying off debt
consolidate debts
mortgage arrears
skuldberading
stop car repossession
auto repossession
voorkom balju veilings
home repossession
lewer
debts advice
debt advice uk
prevent vehicle repossession
repossession bankruptcy
debt counselling advice
debt helpline
repossession court
settle debt
debt laws
debt administrators
credit card debt help
reduce credit card debt
debt judgement
judgment debt
clear debts
credit card debts
too much debt
clear debt
get debt help
debt help service
debt repair
over debt
free debt help
help for debt
paying debt
debt advisor
online debt help
how to stop a repossession
debt help
debt
i debt
how to avoid repossession
debt consulting
debt buster
debt settlement service
debt settlement company
debt repayment
debt consolidation advice
debt elimination software
debt elimination programs
christian debt help
debt advisors
stop home repossession
stop property repossession
ncr debt counsellors
bankruptcy help
debt programs
credit debt help
debt counselling uk
repossession process
consumer debt solution
consumer debt help
christian debt relief
debt relief help
debt relief solution
debt relief service
stop repossessions
debt help services
free debt management
get me out of debt
debt management program
debt companies
prevent property repossession
consumer debt reduction
debt management uk
debt reduction advice
debt help companies
debt negotiator
debt counselling companies
debt councilors
debt settling
debt management companies
debt reduction service
debt managment
credit and debt counselling
non profit debt help
debt counseling
debt management help
consolidated debt counseling
debt reduction help
consumer credit and debt counseling
debt counseling help
consumer debt counselor
debt management services
non profit debt counseling
debt reduction settlement
debt management company
debt counseling corp
debt management counselling
american debt counseling
consumer debt relief
credit card counseling debt consolidation
debt relief services
financial counselling
counselor debt relief
credit consolidation counseling
consumer credit counseling services
consumer credit counselling
consumer debt settlement
debt management credit counseling
debt consolidate
mortgage repossessions
emergency debt relief
national debt services
bad debt loan
debt consoladation
debt free living
how to consolidate debt
debts consolidation
managing debt
debt consolidation company
voorkom voertuig terugnames
voorkom bankterugnames
skuldhersiening
batebeskerming
http://www.helpwithdebt.co.za
debt counselling
prevent repossession
debt advise
avoiding repossession
repossession law
vehicle repossession
debt law
debt busters
help with debts
stop repossession
help with debt
debt councillors
debt assistance
debt counselling help
debt counsel
debt counselors
debt councilling
debt counselling services
debt councelling
debt counceling
debt consolidators
debit counseling
debt consolidation services
debt consolidation help
consolidating debt
blacklisted
repossession rights
repossession stopped
repossession help
repossession stopper
voluntary repossession
help with repossession
car repossession laws
vehicle repossessions
repossession court order
car repossess
car repossessions
debt reviews
legal debt advice
repossessions stopped
repossession advice
advice on debt
free debt advice
repossessed car
debt consultation
debt assist
debts help
debt councellor
mortgage repossession
debt councillor
bad debt help
debt counselling fees
debt counselling service
stopping repossession
debt councellors
repossession sales
being repossessed
repossession order
debt counseling agency
debt management advice
registered debt counselors
eliminate debt
credit debt counselling
christian debt counseling
online debt counseling
debt reduction services
debt reduction counseling
debt counseling company
credit debt counseling
debt counseling programs
credit debt counseling services
credit card counseling
credit and debt counseling
credit counseling and debt consolidation
credit card debt counseling
credit counselor
credit counseling debt relief
debt settlement services
debt consolodation
debt relief counseling
debt relief consolidation
consolidate my debt
debt consolidation credit counseling
debt consolidations
repossession of house
stop house repossession
debt administration
paying off debt
consolidate debts
mortgage arrears
skuldberading
stop car repossession
auto repossession
voorkom balju veilings
home repossession
lewer
debts advice
debt advice uk
prevent vehicle repossession
repossession bankruptcy
debt counselling advice
debt helpline
repossession court
settle debt
debt laws
debt administrators
credit card debt help
reduce credit card debt
debt judgement
judgment debt
clear debts
credit card debts
too much debt
clear debt
get debt help
debt help service
debt repair
over debt
free debt help
help for debt
paying debt
debt advisor
online debt help
how to stop a repossession
debt help
debt
i debt
how to avoid repossession
debt consulting
debt buster
debt settlement service
debt settlement company
debt repayment
debt consolidation advice
debt elimination software
debt elimination programs
christian debt help
debt advisors
stop home repossession
stop property repossession
ncr debt counsellors
bankruptcy help
debt programs
credit debt help
debt counselling uk
repossession process
consumer debt solution
consumer debt help
christian debt relief
debt relief help
debt relief solution
debt relief service
stop repossessions
debt help services
free debt management
get me out of debt
debt management program
debt companies
prevent property repossession
consumer debt reduction
debt management uk
debt reduction advice
debt help companies
debt negotiator
debt counselling companies
debt councilors
debt settling
debt management companies
debt reduction service
debt managment
credit and debt counselling
non profit debt help
debt counseling
debt management help
consolidated debt counseling
debt reduction help
consumer credit and debt counseling
debt counseling help
consumer debt counselor
debt management services
non profit debt counseling
debt reduction settlement
debt management company
debt counseling corp
debt management counselling
american debt counseling
consumer debt relief
credit card counseling debt consolidation
debt relief services
financial counselling
counselor debt relief
credit consolidation counseling
consumer credit counseling services
consumer credit counselling
consumer debt settlement
debt management credit counseling
debt consolidate
mortgage repossessions
emergency debt relief
national debt services
bad debt loan
debt consoladation
debt free living
how to consolidate debt
debts consolidation
managing debt
debt consolidation company
voorkom voertuig terugnames
voorkom bankterugnames
skuldhersiening
batebeskerming
http://www.helpwithdebt.co.za
Friday, May 28, 2010
credit card Fraud tips and advice
You are well advised to hang on to your credit card tightly this festive season, not only because of the implications of too much spending for your budget but also to guard against fraud.
Kalyani Pillay, the chief executive of the South African Banking Risk Information Centre, says the banking industry's losses as a result of South African-issued credit cards used fraudulently anywhere in the world increased by five percent, to R443 million, between July last year and June this year.
In June last year, credit card fraud had increased by 30 percent from the previous year.
"Most bank fraud losses with South African-issued credit cards occurred inside the country, and 89 percent of the losses occurred in Gauteng, KwaZulu-Natal and the Western Cape," Pillay says.
Pillay says, however, that overall losses due to card fraud occurring within South Africa decreased by six percent in the reporting period to June. She attributes the decrease to the impact of chip and PIN technology, as well as a higher awareness among consumers of card fraud.
Counterfeit card fraud - which increased by 22 percent this year, to R144 million - accounted for most of the banking industry's losses to card fraud.
"You have to be aware of potential crime and not let your credit card out of your sight when you make a transaction. You also should not accept unsolicited assistance when you are making an ATM transaction.
"The skimming of credit cards via hand-held skimming devices remains the main modus operandi to obtain the information required to manufacture counterfeit cards," Pillay says.
Card skimming refers to the use of a card reader to copy the encoded information on the magnetic strip of a legitimate card. The data are then used to create counterfeit credit cards.
She says losses due to fraudulent credit card transactions performed over the phone, by mail order or online increased by 45 percent in the year to June, while fraud committed using credit cards that did not reach the intended recipients increased by 35 percent.
Pillay says fraud as a result of criminals opening credit card accounts with fraudulent identity documents decreased by 54 percent. "The decrease in this type of fraud shows that the internal security systems of banks are proving a deterrent to criminals."
How to protect yourself
Kalyani Pillay, the chief executive of the South African Banking Risk Information Centre, says you should do the following to protect yourself against theft and fraud involving credit and ATM cards:
When you make a payment with your credit card, check that the card you receive back from the cashier is, in fact, your card and has not been substituted with a dud card;
Never lend your credit card to anyone;
Never give your credit card details to unsolicited callers who offer to sell you something over the telephone;
Report a lost or stolen card to your bank immediately;
Store the number of your bank's lost and stolen cards hotline on your cellphone, so that you can contact your bank if your card is lost or stolen while you are away from home;
Respond quickly to requests from your bank to collect new or replaced cards;
If a replaced card does not reach you within the specified time, report this to your bank immediately;
Protect your internet banking profile at all times and never give your password to anyone;
Do not allow websites to remember your password - always press "no" when you are presented with this option;
Check your monthly bank statements thoroughly and report any irregularities to your bank;
Dispose of your bank statements in a way that ensures they cannot be read;
Never force your card into an ATM's card slot - use a different machine if you experience difficulties with an ATM;
Make sure that no one is watching you when you enter your PIN - shield the ATM keypad with your free hand; and
http://www.helpwithdebt.co.za
Kalyani Pillay, the chief executive of the South African Banking Risk Information Centre, says the banking industry's losses as a result of South African-issued credit cards used fraudulently anywhere in the world increased by five percent, to R443 million, between July last year and June this year.
In June last year, credit card fraud had increased by 30 percent from the previous year.
"Most bank fraud losses with South African-issued credit cards occurred inside the country, and 89 percent of the losses occurred in Gauteng, KwaZulu-Natal and the Western Cape," Pillay says.
Pillay says, however, that overall losses due to card fraud occurring within South Africa decreased by six percent in the reporting period to June. She attributes the decrease to the impact of chip and PIN technology, as well as a higher awareness among consumers of card fraud.
Counterfeit card fraud - which increased by 22 percent this year, to R144 million - accounted for most of the banking industry's losses to card fraud.
"You have to be aware of potential crime and not let your credit card out of your sight when you make a transaction. You also should not accept unsolicited assistance when you are making an ATM transaction.
"The skimming of credit cards via hand-held skimming devices remains the main modus operandi to obtain the information required to manufacture counterfeit cards," Pillay says.
Card skimming refers to the use of a card reader to copy the encoded information on the magnetic strip of a legitimate card. The data are then used to create counterfeit credit cards.
She says losses due to fraudulent credit card transactions performed over the phone, by mail order or online increased by 45 percent in the year to June, while fraud committed using credit cards that did not reach the intended recipients increased by 35 percent.
Pillay says fraud as a result of criminals opening credit card accounts with fraudulent identity documents decreased by 54 percent. "The decrease in this type of fraud shows that the internal security systems of banks are proving a deterrent to criminals."
How to protect yourself
Kalyani Pillay, the chief executive of the South African Banking Risk Information Centre, says you should do the following to protect yourself against theft and fraud involving credit and ATM cards:
When you make a payment with your credit card, check that the card you receive back from the cashier is, in fact, your card and has not been substituted with a dud card;
Never lend your credit card to anyone;
Never give your credit card details to unsolicited callers who offer to sell you something over the telephone;
Report a lost or stolen card to your bank immediately;
Store the number of your bank's lost and stolen cards hotline on your cellphone, so that you can contact your bank if your card is lost or stolen while you are away from home;
Respond quickly to requests from your bank to collect new or replaced cards;
If a replaced card does not reach you within the specified time, report this to your bank immediately;
Protect your internet banking profile at all times and never give your password to anyone;
Do not allow websites to remember your password - always press "no" when you are presented with this option;
Check your monthly bank statements thoroughly and report any irregularities to your bank;
Dispose of your bank statements in a way that ensures they cannot be read;
Never force your card into an ATM's card slot - use a different machine if you experience difficulties with an ATM;
Make sure that no one is watching you when you enter your PIN - shield the ATM keypad with your free hand; and
http://www.helpwithdebt.co.za
Thursday, May 27, 2010
debt counselling and debt review
You may be aware that all creditors fall under the National Credit Act (NCA), but did you know that if you deal with a pawnbroker you are also protected?
Pawnbrokers fall under the NCA because they are in the business of providing credit, Peter Setou, the senior manager of education and strategy at the National Credit Regulator (NCR), says.
"Pawnbrokers that have at least 100 agreements on their books, or a total outstanding debt of more than R500 000 owed to them under pawn agreements, must register with the NCR," Setou says.
However, those that do not meet the conditions for registering with the NCR still fall under the Act, and their clients also enjoy its protection.
Setou says although pawnbrokers are exempt from having to conduct an affordability assessment before they grant you a loan, they must comply with a number of other NCA requirements, such as:
The credit agreement must state an end date;
The safekeeping of property given to the pawnbroker is the pawnbroker's responsibility;
The pawnbroker must return your property once you have met your obligations;
If the pawnbroker fails to return your property on the termination of the agreement, you can lodge a complaint with the NCR or the Provincial Consumer Affairs Office;
If your property is lost due to circumstances beyond the control of the pawnbroker, such as in a fire, you are entitled to be refunded an amount equal to its fair market value less any outstanding amount you owe;
If the failure to return your property is due to a reason within the control of the pawnbroker (for example, the item was sold), you are entitled to double its fair market value less any outstanding amount you owe; and
If the pawnbroker sells your property to settle a loan and is paid more than what you owe, the excess money must be refunded to you.
Setou says because affordability assessments do not apply to pawnbrokers, you will not be able to claim that a pawnbroker engaged in reckless lending if you dispute a credit agreement.
Maximum interest rates
Typically, you offer a pawnbroker an asset, such as your jewellery, as collateral for a loan.
The pawnbroker will work out the interest and the charges on the amount you want to borrow. The pawnbroker will accept your asset as collateral if its value is not less than the total amount of your loan, including interest and charges.
Setou says pawn transactions are classified as "other" credit agreements under the NCA. This means that the maximum initiation fee that a pawnbroker can charge you is R150, plus 10 percent of the amount of the agreement that exceeds R1 000, with the fee capped at R1 000.
For example, if you take out a loan of R5 000, the initiation fee will be R150 plus R400 (10 percent of R4 000), which equals R550.
In terms of the NCA, the maximum interest rate a pawnbroker can charge you is the repo rate multiplied by 2.2, plus 10 percent. At the current repo rate of 6.5 percent, the maximum annual interest rate you can be charged is 24.3 percent.
Pawnbrokers fall under the NCA because they are in the business of providing credit, Peter Setou, the senior manager of education and strategy at the National Credit Regulator (NCR), says.
"Pawnbrokers that have at least 100 agreements on their books, or a total outstanding debt of more than R500 000 owed to them under pawn agreements, must register with the NCR," Setou says.
However, those that do not meet the conditions for registering with the NCR still fall under the Act, and their clients also enjoy its protection.
Setou says although pawnbrokers are exempt from having to conduct an affordability assessment before they grant you a loan, they must comply with a number of other NCA requirements, such as:
The credit agreement must state an end date;
The safekeeping of property given to the pawnbroker is the pawnbroker's responsibility;
The pawnbroker must return your property once you have met your obligations;
If the pawnbroker fails to return your property on the termination of the agreement, you can lodge a complaint with the NCR or the Provincial Consumer Affairs Office;
If your property is lost due to circumstances beyond the control of the pawnbroker, such as in a fire, you are entitled to be refunded an amount equal to its fair market value less any outstanding amount you owe;
If the failure to return your property is due to a reason within the control of the pawnbroker (for example, the item was sold), you are entitled to double its fair market value less any outstanding amount you owe; and
If the pawnbroker sells your property to settle a loan and is paid more than what you owe, the excess money must be refunded to you.
Setou says because affordability assessments do not apply to pawnbrokers, you will not be able to claim that a pawnbroker engaged in reckless lending if you dispute a credit agreement.
Maximum interest rates
Typically, you offer a pawnbroker an asset, such as your jewellery, as collateral for a loan.
The pawnbroker will work out the interest and the charges on the amount you want to borrow. The pawnbroker will accept your asset as collateral if its value is not less than the total amount of your loan, including interest and charges.
Setou says pawn transactions are classified as "other" credit agreements under the NCA. This means that the maximum initiation fee that a pawnbroker can charge you is R150, plus 10 percent of the amount of the agreement that exceeds R1 000, with the fee capped at R1 000.
For example, if you take out a loan of R5 000, the initiation fee will be R150 plus R400 (10 percent of R4 000), which equals R550.
In terms of the NCA, the maximum interest rate a pawnbroker can charge you is the repo rate multiplied by 2.2, plus 10 percent. At the current repo rate of 6.5 percent, the maximum annual interest rate you can be charged is 24.3 percent.
Monday, May 24, 2010
debt counselling and debt review
In a bid to help thousands of over-indebted consumers sooner rather than later, a debt review task team appointed by the National Credit Regulator (NCR) has come up with ways to streamline the debt counselling process.
The task team, established late last year and headed by former banking ombudsman Neville Melville, released an interim report last week showing that the number of consumers who have applied for debt counselling has more than doubled - from 80 000 in July last year to more than 160 000 currently. The monthly repayments made by consumers under debt counselling was R167.9 million for March alone.
The task team identified the following problem areas:
• Efficiency and compliance by Help with debt, debt counsellors. Counsellors have been accepting cases from clients who do not qualify for debt counselling and then submitting unreasonable repayment plans to creditors.
• A lack of capacity and administrative delays among credit providers. Many credit providers, including the major banks, cannot provide accurate balance statements to Help with debt, debt counsellors on time.
• The distribution and receipt of payments by consumers. For example, creditors forward incorrect account numbers to Help with debt, debt counsellors, and payments made by consumers are transferred to the wrong account.
Previous delays in the debt counselling process were attributed to uncertainty in the magistrate's courts on how to interpret the National Credit Act.
Magistrates were not sure whether they had jurisdiction to hear cases that related to amounts of more than R100 000, and there was also confusion over which regional court had jurisdiction to hear a case that involved creditors based in different parts of the country.
A High Court ruling in August last year resolved these issues. The court ruled that there are no monetary limits on debt counselling cases heard in a magistrate's court, and that a case should be heard in the court that has jurisdiction over the area in which a consumer lives. For example, if you live in Cape Town and you have three creditors, with head offices in Cape Town, Johannesburg and Durban, your case will be heard in a magistrate's court in Cape Town.
Magauta Mphahlele, the chief executive of the National Debt Mediation Association, says although more debt counselling cases have been finalised since the High Court ruling, there is still a huge backlog of cases, with some Help with debt, debt counsellors being given court dates for 2012.
Suggestions by the task team to pave the way for a smoother debt counselling process are:
• Help with debt, debt counsellors should accept consumers for debt counselling only where debt rehabilitation is realistically feasible. Counsellors should ensure that you adhere to your repayment plan and that the budget they draw up allows you to keep paying your insurance premiums so that your policies do not lapse, leaving you without cover.
• Banks and other credit providers should establish dedicated units to deal with debt counselling agreements.
• All major credit providers should implement clear acceptance and termination policies to accommodate consumers who are making reasonable payments and to terminate debt counselling when consumers do not meet their repayment obligations.
• Banks and other major credit providers should issue accurate certificates of statement balances promptly.
• The possible introduction of dedicated bank accounts for debt counselling payments.
• Creditors should ensure that pre-existing debit orders are cancelled so that debit orders that relate to debt counselling can be processed successfully.
Mphahlele says the relationship between Help with debt, debt counsellors and creditors needs to improve drastically so that cases can be resolved quickly and efficiently.
"If a debt restructuring proposal is contested by a creditor and goes to court, the costs can escalate by as much as R4 500 or R6 000. It simply does not make sense when you are dealing with an over-indebted consumer," Mphahlele says.
Melville says an over-riding requirement for the successful implementation of the debt counselling process is for consumers to stop using debt counselling as an excuse not to meet their payment obligations.
"It is not the intention of the [National Credit] Act to protect such individuals, and unfortunately this behaviour is prevalent, even among high-income consumers," he says.
How debt counselling works
When you apply for debt counselling, a debt counsellor will assess your finances to determine whether or not you are over-indebted. If you are, the counsellor will notify all your creditors that you are undergoing debt counselling and will draw up a repayment plan for you. If you and your creditors agree to the repayment plan, your debt counsellor will present the plan to the National Consumer Tribunal for approval. If any creditors disagree with the plan, the counsellor must ask a magistrate's court to rule on whether or not it is acceptable.
The task team, established late last year and headed by former banking ombudsman Neville Melville, released an interim report last week showing that the number of consumers who have applied for debt counselling has more than doubled - from 80 000 in July last year to more than 160 000 currently. The monthly repayments made by consumers under debt counselling was R167.9 million for March alone.
The task team identified the following problem areas:
• Efficiency and compliance by Help with debt, debt counsellors. Counsellors have been accepting cases from clients who do not qualify for debt counselling and then submitting unreasonable repayment plans to creditors.
• A lack of capacity and administrative delays among credit providers. Many credit providers, including the major banks, cannot provide accurate balance statements to Help with debt, debt counsellors on time.
• The distribution and receipt of payments by consumers. For example, creditors forward incorrect account numbers to Help with debt, debt counsellors, and payments made by consumers are transferred to the wrong account.
Previous delays in the debt counselling process were attributed to uncertainty in the magistrate's courts on how to interpret the National Credit Act.
Magistrates were not sure whether they had jurisdiction to hear cases that related to amounts of more than R100 000, and there was also confusion over which regional court had jurisdiction to hear a case that involved creditors based in different parts of the country.
A High Court ruling in August last year resolved these issues. The court ruled that there are no monetary limits on debt counselling cases heard in a magistrate's court, and that a case should be heard in the court that has jurisdiction over the area in which a consumer lives. For example, if you live in Cape Town and you have three creditors, with head offices in Cape Town, Johannesburg and Durban, your case will be heard in a magistrate's court in Cape Town.
Magauta Mphahlele, the chief executive of the National Debt Mediation Association, says although more debt counselling cases have been finalised since the High Court ruling, there is still a huge backlog of cases, with some Help with debt, debt counsellors being given court dates for 2012.
Suggestions by the task team to pave the way for a smoother debt counselling process are:
• Help with debt, debt counsellors should accept consumers for debt counselling only where debt rehabilitation is realistically feasible. Counsellors should ensure that you adhere to your repayment plan and that the budget they draw up allows you to keep paying your insurance premiums so that your policies do not lapse, leaving you without cover.
• Banks and other credit providers should establish dedicated units to deal with debt counselling agreements.
• All major credit providers should implement clear acceptance and termination policies to accommodate consumers who are making reasonable payments and to terminate debt counselling when consumers do not meet their repayment obligations.
• Banks and other major credit providers should issue accurate certificates of statement balances promptly.
• The possible introduction of dedicated bank accounts for debt counselling payments.
• Creditors should ensure that pre-existing debit orders are cancelled so that debit orders that relate to debt counselling can be processed successfully.
Mphahlele says the relationship between Help with debt, debt counsellors and creditors needs to improve drastically so that cases can be resolved quickly and efficiently.
"If a debt restructuring proposal is contested by a creditor and goes to court, the costs can escalate by as much as R4 500 or R6 000. It simply does not make sense when you are dealing with an over-indebted consumer," Mphahlele says.
Melville says an over-riding requirement for the successful implementation of the debt counselling process is for consumers to stop using debt counselling as an excuse not to meet their payment obligations.
"It is not the intention of the [National Credit] Act to protect such individuals, and unfortunately this behaviour is prevalent, even among high-income consumers," he says.
How debt counselling works
When you apply for debt counselling, a debt counsellor will assess your finances to determine whether or not you are over-indebted. If you are, the counsellor will notify all your creditors that you are undergoing debt counselling and will draw up a repayment plan for you. If you and your creditors agree to the repayment plan, your debt counsellor will present the plan to the National Consumer Tribunal for approval. If any creditors disagree with the plan, the counsellor must ask a magistrate's court to rule on whether or not it is acceptable.
Subscribe to:
Posts (Atom)
