DCRS CREDIT PROVIDER OVERVIEW

26TH APRIL 2011

DCRS Credit Provider Training Summary 2

Background & Overview of the DCRS

As part of the NCR debt review Task Team recommendations the credit industry was called on to agree a set of restructuring rules that would carry consent. Consent will be certain if there is no dispute about: The eligibility of the consumer or agreement for debt review; and/ or The integrity of the over-indebtedness and affordability assessment done by the

debt counsellor. In the interest of resolving as many as possible deserving cases through consent,

the credit industry agreed a set of restructuring rules that incorporates sacrifices by credit providers beyond what can be imposed under the NCA.

This led to the development and deployment of a central web based engine (the DCRS) accessible to all debt counsellor system providers and credit providers, on which the agreed consent rule-set and all future NCR Debt Review Advisory Committee agreed restructuring rule-sets can be deployed.

The DCRS receives standard data from a debt counselling system, restructures the debts in the portfolio in accordance with the affordability assessment outcome and debt portfolio data submitted and sends the essential data for a standardised debt restructuring proposal and PDA payment plan back to the DC system for incorporation into a proposal to credit.

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Background & Overview of the DCRS

On the DCRS a summary of the debt counsellor’s affordability assessment, the debt restructuring proposal (if the case solved under the rules) and the PDA payment plan will be retained in the agreed standardised formats.

On receipt of a Form 17.2 pack for a case processed on the DCRS (now incorporating the assessment summary, restructuring proposal and PDA payment plan in standardised format) the credit provider can then use an access code provided by the DCRS for each case to validate the pack received against the data on the DCRS.

In cases where the debt restructuring proposal and payment plan complies with the rules (as confirmed by the DCRS) and there is not a dispute about the eligibility for debt review or the integrity of the assessment, credit providers have agreed to issue a standardised acceptance letter and after final acceptance the new terms agreed to will be reflected on the credit provider systems from date of acceptance.

This obviates the need for the credit provider to try to manually assess and test (recalculate) the restructuring proposal if the proposal (including the assessment summary and payment plan) received corresponds with the version on the DCRS. If not, the credit provider would have no obligation to consent and the pack received will require extensive manual evaluation for an answer to be formulated.

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Background & Overview of the DCRS

The DCRS in combination with and as an integral part of the new debt review dispensation being established following the Task Team recommendations constitutes a powerful tool to streamline the process, reduce the costs and turn-around times and build trust between credit providers and debt counsellors. In addition the implementation of this process should reduce congestion at the Magistrate Courts as a very significant proportion of cases can be settled through consent.

The enhanced debt review process recommended by the Task Team, agreed by the credit industry, debt counsellors and supported by the NCR is depicted on the next slide.

In this new process, where the DCRS rules are used by the debt counsellor, the credit providers will validate the: Provisional proposal received in step 6 (which must reach them by latest business day 15

in the process) in step 7 to determine the provisional response they must have back with the DC by latest business day 25 in the process); and

Final proposal received in step 8 (which must reach them by latest business day 32 in the process) in step 9 to determine the final response to the restructuring proposal (which they must have back with the debt counsellor by latest business day 39 in the process).

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Debt Review ProcessClient approaches

DC to be considered for Debt Review

DC evaluates case and sends

17.1 notice to CPs

CPs send COB response to DC

DC submits case to DCRS

DCRS calculates provisional proposal

DCRS sends prov. proposal back to

DC

DC sends prov. proposal to all affected CPs

CP receive prov. Proposal from DC

CP checks Prov. Proposal on

DCRS website

CP responds to DC with COB and

consent

DC submits all responses to

DCRS

DCRS recalculates final

proposal

DC submits final proposal to CPs

CP checks Final Proposal on

DCRS website

CP responds to DC

6

Summarised Rules Calculations

Three rules applied to all debts1. Apply deemed term to credit cards and allow for

payment of DC + Legal fees

2. Reduce admin fees and increase term

3. Increase term further and reduce interest rate Compare calculation result to affordability to

check if it solves Rules agreed upon by Credit Providers and

Debt Counsellors

DCRS Credit Provider Training Summary

DCRS Credit Provider Training Summary 7

Document Templates

Documents sent between DC and CP have been standardised:COBProposal (Provisional / Final)Assessment SummaryPDA Payment Plan (Provisional / Final)

DCRS Credit Provider Training Summary 8

DCRS Website- Introduction & purpose Available exclusively to Credit Providers Allows verification of Debt Review cases

User logs inSearch for DR cases using DR Reference

numberVerify DR case information

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DCRS Website- Using the website

DC sends proposal to CP

CP logs onto DCRS website

CP verifies case on website

CP send consent

response to DC

DC captures consent

response on DCRS

This could be a Provisional or Final

proposal

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DCRS Website- Login to DCRS website

1. Access website on www.debtcounsellingrs.co.za, viewing the ‘Log On’ tab

2. Input user name and password

3. Click ‘Logon’

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DCRS Website- Forgot Password?

1. View ‘Password’ tab of Login Screen

2. Input your Username

3. Click ‘Reset’

An email containing a new randomly generated password will be sent to your email address.

When next logging in, you will be prompted to provide a new password of your choosing

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DCRS Website- Main Menu (administrator)

Reset a users password

(Admin only)

Create/update users (Admin

only)

Search for Debt Review

cases

Log off DCRS

Main Menu for Operator excludes ‘Change User Password’ and ‘User Maintenance’

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DCRS Website - Create UserStep 1: Open User Maintenance

Create/update users (Admin

only)

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DCRS Website - Create UserStep 2: Select ‘Add User’

Listing of all users linked to your Credit

Provider

Click ‘Add User’

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DCRS Website - Create UserStep 3: Capture User Details

Same Credit Provider as

Administrator

Will be used to login

Use for Temp Employees

Save User

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DCRS Website - Create UserStep 4: Retrieve Password

Message sent with randomly generated password to email address provided

User must login using this password User will be prompted to reset password

when first logging in

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DCRS Website – Update UserStep 1: Open User Maintenance

Create/update users (Admin

only)

DCRS Credit Provider Training Summary 18

DCRS Website – Update UserStep 2: Select User

Click ‘View’ for user record

Use to search for User Records

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DCRS Website – Update UserStep 3: Update User Details

Change if user should reset their password when they

next log in

Change is user should have access disabled on specific

date

Change if user should not have access to website

Save changes

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DCRS Website –Reset passwordStep 1: Open ‘Change User Pswd’

Reset a users password

(Admin only)

DCRS Credit Provider Training Summary 21

DCRS Website –Reset passwordStep 2: Select user

Select User ID to reset the password

Search by ID, First Name or

Surname

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DCRS Website –Reset passwordStep 3: Capture New Password

Capture new password

Click ‘Save’

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DCRS Website –View DR CaseStep 1: Open DR Search

Search for Debt Review

cases

DCRS Credit Provider Training Summary 24

DCRS Website –View DR CaseStep 2: Search for DR Case

Capture DCRS Ref Number and Search

Click ‘View’ on account

DCRS Credit Provider Training Summary 25

DCRS Website –View DR CaseStep 3: View Case History

Click ‘View’ for account

DCRS Search

Reference

Provisional/Final

Case resolved

Rule applied in calculation

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DCRS Website –View DR CaseStep 4: View Assessment Screen

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Step 4: View Assessment ScreenAssessment Summary

Most important Assessment Information Shows amount & % of gross income

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Step 4: View Assessment ScreenPayslip Information

Applicant, Partner and Total columnsOriginalRevised

See training manual for full description of each field

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Step 4: View Assessment ScreenExpenditure & Financial Services

Original/revised ‘Home ownership costs/Rent’ includes non-

restructured mortgages

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Step 4: View Assessment ScreenAssets

Unencumbered/Encumbered Assets Description, Category, Owner (if encumbered),

Value

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Step 4: View Assessment ScreenOnce off Fees & Escalation

Paid / Unpaid once-off fees Escalation month & percentage

Expected % increase in affordability per year

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DCRS Website –View DR CaseStep 5: View Proposal Screen

DCRS Credit Provider Training Summary 33

Step 5: View Proposal ScreenAccount Information

List of all accounts showingPresent contractual obligationsProposed restructured terms

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DCRS Website –View DR CaseStep 6: View PMT Plan Screen

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Step 6: View PMT Plan ScreenPMT Plan Account Details

Includes a line per “restructuring phase” Different restructuring phase per distribution

amountE.g. if CP is to receive R1000 for first 12 months, and

R1200 for next 12 months, there will be two lines: 1 for the R1000, one for the R1200.

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Annexure The following documents form part of this

presentation Annexure A

○ COB○ Proposal (Provisional / Final)○ Assessment Summary○ PDA Payment Plan (Provisional / Final)○ Glossary of terms

Annexure B○ DCRS Detail Training Manual

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Need Help?

DCRS Project ManagerCaroline Smithcarolines@ndma.org.za082 6510015

IT Help Desk(021) 503 1331helpdesk@debtcounsellingrs.co.za