http://www.thedci.co.za/debtfree.php

South Africa’s debt counselling magazine

October 2012

1st in SA Debt Counselling Industry Life Cover For Over Indebted

SECURITISATIONWhy You Need To Know If your Bond Is Securitised

Message from Deborah Solomon

It has been one year since going live on theDCI and to my amazement, I still receive daily emails from DCs asking me: what is the catch or how can theDCI be free to all DCs? My answer is not complex nor does it have fine print. The simple truth is I care enough to care about others and am determined to build this into our industry culture. Some may not understand it, others assume there must be a catch, a few think I am just as devious as they are. The facts speak for themselves: No money has been taken from any DC to belong to theDCI. All information is transparent and shared openly. theDCI was built and given to every DC because there was nothing available for them. It was something that was needed, but those in the know could not be bothered to do. It was built as a safe haven for DCs to confide in each other and to support one another. theDCI fought for you and for millions of South Africans not because we were not one of the 3 "Chosen Ones", but because we believe in the NCA and YOU. In the process of fighting for consumers rights over 8 million Rands worth of free positive press was generated for our industry. While doing so, we did not punt one DC or company as others always do, instead we punted EVERY DC and the industry as a whole. theDCI believe that true change starts from within, not in trying to save face. We need to promote everyone and not only a selective few. theDCI is a family who takes care of each other. We are supportive of each other and lend an ear when guidance is needed. No concern or problem is too big or small. We listen and each voice is heard. We value the strength of eachDC's experience. Our actions have shown this. Our words "you now have a voice, united we stand" were never empty for we accomplished what no one else would dare. theDCI leads the way. The rest only imitate and follow. We need your guidance to lead this industry into the new era of success. If you care enough to care, we need your support in helping us to make a difference to 9.3 million South Africans in need. We now have a voice, United We Stand.

C O N T E N T S7 Editors notes

9 News

14 I got a scary SMS

18 Living on less

20 Contract killing

22 Interested in interest?

26 Debt Vader

34 Serivce Directory

32 Securitisation

wellness@thedci.co.za

The Rand is taking a pounding, the recent upheaval in the mining industry and transport industries are effecting the JSE and the economy. Petrol is up and food is following. It all seems so very financially depressing. Fortunately you don’t have to deal with all of that. All you have to focus on is yourself and your family. Dealing with your debt is the first step and if you are taking strain then now is the time to talk to a Debt Counsellor. If you are already under debt review then please communicate with your DC about any challenges you face and start to make plans to stay within your budget now.

This month, we get back to basics with a look at interest and how it works for (or rather against) you in Chartered Accountant Wayne Coetzee’s interest...ing article. We also consider what to do when you get a scary sms, how to still have fun while living on less (in our new living on less section) and as always we have lots of industry news too. We finally got Debt Vader to stop ranting and raving and we rather look at a very particular type of consumer who might enter debt review and consider what can be done to help them. All in all the magazine is packed with insights and advice for all.

As a final thought: the end of the year draws closer and your debt may yet still seem to loom large. Keep chipping at it, you will get there. Many consumers find the end of the year a difficult time to maintain their debt repayments. We urge you to keep making those payments - even if its hard work. Just a slight slip-up can make things even more complicated and have very negative consequences. So buckle down and keep on heading to the oh so sweet goal of being totally debt free!

EDITOR’S NOTE

INDUSTRY CONSUMER

NEWS FLASHFor daily debt counselling news visit www.debtfreedigi.co.za

NCR CONSIDER DEBT COUNSELLOR CODE OF CONDUCTBack in 2009 the NCR found that there were some hick-ups in the then new debt counselling industry. At that time, they appointed a task team to investigate and report on these issues. The Task Team did a report, and what’s more, they came back with suggestions on ways to deal with these problems. One suggestion they put forward was that industry codes of conduct in regard to debt review be put in place. Credit providers through the National Debt Mediation Association (NDMA) put such a code into effect and some Debt Counsellors at the Debt Counselling Association of South Africa (DCASA) followed suit. Soon afterward there was an outcry from Debt Counsellors as the NCR began to insist that DCs sign the code of conduct. The opposed parties did not want to sign for a variety of reasons. The Main reasons were (1) the opposed DC’s did not belong to the DCASA (2) The NCA never called for such a code (3) the code proposed by DCASA called on DC’s to adopt steps and processes that go beyond what the NCA asks for. Many DC’s felt that the proposed Task Team voluntary measures are illegal and do not conform to the purposes of the NCA. In an attempt to please all parties, especially the new association for DC’s called the Alliance of Professional Debt Counsellors (AllProDC) and those unaffiliated DC’s, the NCR added the

phrase “or other association” after reference to DCASA in the code. This was not met with the success the NCR had hoped as many DC’s still felt that a code that prevents some South Africans from accessing the benefits of the NCA and demanded use of certain service providers software and services was unacceptable. Now with the recent scrutiny the NCR has been giving to all things NDMA and DC associations, it seems that the NCR has decided to call on DC’s to make suggestions as to what code of conduct they would like to see created. The NCR called for all DC’s to submit comments and suggestions by mid-October 2012 and will then see if there is room for a common code of conduct. It is unclear when any announcements will be made about the subject, but Debtfree DIGI will report on it the moment anything happens.

THE DCI FORUM 1 YEAR OLD THIS MONTHThe Debt Counselling Industry (theDCI) - an online forum and service provider to consumers, credit providers and DC’s - brain child of Debt Counsellor (and consumer) Deborah Solomons is now officially 1 year old. TheDCI made a big splash back in 2011 when it launched it’s online forum for Debt Counsellors. Unlike other forums theDCI has a secure web-forum for only those directly involved with debt review. The forum quickly

NEWS CONT.

became popular. So much so, that other bodies such as AllProDc and DCASA launched their own online forums (which are open to the public and creditors as well). TheDCI is still the most popular and active industry forum around, with numerous discussions happening daily about industry challenges and victories. TheDCI features a very accurate list of DC’s country wide and helps consumers to locate DC’s who are still practicing (unlike the NCR database which is... less accurate). TheDCI has also been engaged in a series of positive press releases about the debt counselling industry. Recently theDCI was thrust into the spotlight when founder Deborah Solomons demanded that the NCR investigate the proposed NDMA VDMS project. The NCR investigation revealed many breaches of the NCA and the project was shut down. Many feel this was a great victory for consumers and DC’s alike. Now theDCI are leading the charge against banks who are campaigning to try sell the homes of debt review consumers. TheDCI is beginning a class action suit against banks who are now going back on their previous offers of help to consumers (even when these consumers have already been to court and a magistrate has given them a debt restructuring court order). It is impressive to see what theDCI has done in it’s first year and the following year looks to be equally as exciting.

NDMA VS NCR RE: VDMSRecently a project instituted by the National Debt Mediation Association (NDMA) at the prompting of the Banking Association of South Africa (BASA) called VDMS or Voluntary Debt Mediation was declared illegal and stopped by

the National Credit Regulator (NCR). The NCR ordered all parties involved in the proposed voluntary debt mediation project to scrap the project and halt any involvement they might have in the pilot project. Since then the NDMA have been quite vocal in the press about how they do not agree with the NCR and have been casting the NCR in the role of the baddy, not wanting consumer to get help. They have also continued to make comments focussed on the problems which face debt review rather than the benefits. This seems to be in a drive to say that VDMS would have been better if only the NCR were not so nasty. The NCR have taken a firm stance in regard to the canning of the VDMS project and have indicated that they do not want the NDMA to try find ways to make it work. Rather they want to see the NDMA help make debt review work smoother and encouraging cooperation with debt review by their members.

ALLPRODC AGM1 YEAR ANNIVERSARYSouth Africa’s second largest Debt Counsellors association namely the Alliance of Professional Debt Counsellors (AllProDC) are celebrating their 1 year anniversary and hosting their first annual general meeting (AGM) in November.AllProDC has a strong presence in the Western and Eastern Cape as well as a smaller presence in KZN, Gauteng and Mpumalanga. Their membership has been slowly growing over the last 12 months since their official launch. Many of the original members came out of the now famous DCASA Western Cape committee “storm out” but their vision for debt counselling according to the NCA has met with

PAGE 20

CONTRACT KILLING

approval from debt counsellors country wide. AllProDC have a popular online forum which discusses industry issues and allows DC’s to exchange advice. Recently they have been holding monthly workshops in various areas to help DC’s and attorneys improve their level of service. Their AGM will be held at the Parow Golf Club in Cape Town on 23 October at 10 am.

MARIKANA PRESS COVERAGE SPURS NCR TO INVESTIGATE LOCAL CREDITORSIn the wake of the riots and deaths at Marikana the eyes of the nation turned to that area and many people were wondering what is being done to help improve the situation. It seems that the NCR were moved to shift their “Operation Blitskrieg” to the area in response to concerns. Raids on the properties of the approximately 14 local creditors were launched. The NCR and DTI were surprised to see the large amount of creditors operating in such a small community.It seems they were right to bring their investigation to the Marikana area as almost all of the credit providers in the area were found to be breaking the law. Creditors in the area have been charging excessive interest rates (above that allowed by the NCA), retaining peoples bank and credit cards to enable them to make withdrawals for payments of loans, demanding consumers pin codes, holding consumers ID books as well as granting consumers who cannot afford loans “recklessly”. The NCR have now referred these creditors to the NCT who will impose fines and arrange for consumer to be refunded (in most cases). The NCR have indicated that they are also now investigating

the practices of big creditors (including some who operate in Marikana) such as FNB, African Bank and Capitec.

NCR INVESTIGATE IRREGULARITIES AT VEREENINGING MAG COURTZweli Zakwe has said that the NCR are busy with an “investigation which involves a big credit provider,[where]there is a pattern that has come to light, there are credit providers who go out of their jurisdiction, out of the jurisdiction of where the consumer lives to a particular court where it appears to be easy to obtain garnishee orders...the question that comes to mind [is] why choose a particular court? You cannot be living in Johannesburg, working in Soweto and then you find that the garnishee order was obtained in the Vereeniging Magistrate’s Court. That’s irregular.”

NEXT PAGE 14

SCARY SMS

Dear Nedbank client, note that your Debt Counsellor has withdrawn your Debt Review application, you must get a new DC within 20 business days. Pls call 0860 109 279 Ref: ***************

I Got a Scary

SMS

CONSUMER

If you have ever received a threatening sms you will know it can send you into a flat panic. Your mind begins to race and doubts about your debt review can quickly surface. The sms may threaten legal action that you can ill afford or it might say things like your debt review is cancelled. Panic stations!!!! Now what?

Recently a number of Debt Counsellors (DCs) have been saying that their consumers are being harassed by certain creditors. These creditors are calling, visiting and sms-ing consumers even though they know the consumer has applied for debt review or may already have a debt restructuring court order. This is, of course, is in bad faith and shows a blatant disrespect for the consumer, the debt review process and the National Credit Act. Consumers who are the target of such harassment are urged to speak out. Complain to the creditor itself, complain to organisations which represent creditors such as the NDMA and complain to the relevant ombud if all these other ways fail. Your DC can advise you on how to do so.

One example given to Debtfree (by a DC on behalf of his consumer) is where Nedbank sent the consumer a scary sms in May 2012 saying that the DC had withdrawn from the process. The DC in question strongly denies having sent out any such withdrawal notice to Nedbank (an 17.4). Also the DC says that Nedbank had not even issued a 86(10) ‘we don’t want to help you; we want to sue you’ letter. The DC claims that this sms is supposedly just one of a bulk sms that went out to many consumers under debt review.

If this is the case, then Nedbank have seriously overstepped the mark. They would be in contravention of all sorts of Acts including the Consumer Protection Act. It would certainly be outside the spirit of the NCA and the goal of assisting to consumers deal with their debt responsibly.

It is possible for consumers to receive sms’ incorrectly. In some cases, one department at a large credit provider might simply not know what another department is doing. In other cases bad programming of a computer may result in the computer simply seeing the consumer being ‘behind’ on payments and then send them a message without realising that they have entered debt review. It is speculated that in other cases a creditor might just be “trying his luck” as the saying goes. They might send out scary sms’ and hope that consumers react and call them.

A more sinister thought is that such an sms might not actually be from the creditor themselves. It might be from a 3rd party who is trying to get a consumer to pay money over to them rather than the creditor. Consumers should be very cautious when a caller says they work for “ x Bank”. It might be wise to ask for documentary proof when contacted by phone or sms in regard to collecting money, especially where a new bank account number is given for payments to be made to.

Perhaps in the example mentioned above, the Nedbank sms was simply sent by mistake. Thus all things considered, when you receive a sms it is good not to fly into a flat spin, but rather calmly take the below mentioned steps:

1) Don’t Panic!This is probably the most important step. Remember that you might be just one of lots and lots of people getting an sms sent out by a computer (not a person who actually knows your case). The SMS might actually not apply to you at all. More than that an sms is simply an indication that may be there is something your DC can help you look into and sort out.

2) Contact your DC rather than replying to or contacting the number on the sms. If you start to engage with the credit provider you might accidentally be drawn into making promises you cannot keep. You cannot promise something on the phone when you have a matter sitting at court before a magistrate who could change things however they see fit. Also replying to the number shown may leave you open to scams and con artists. Beware! Rather contact your DC (maybe with an email) to let them know about the sms and it’s contents. If it is serious they will soon inform you and appropriate action can be taken.

3) Make a record of the sms.The sms may be part of a harassment campaign against you by a particular creditor. If you later intend to take action against them (legal action) a detailed record of all such bad behaviour on the part of the creditor will be needed. Remember you might lose or damage your phone so it is best to write these things down.

Sequestration enquiries are moving to a new high with many debt counsellors moving clients from the debt review process through to a sequestration process.

The first warning sign for most clients in debt review is when one can no longer afford their monthly debt review repayments. The second warning sign is when all other living expenses have been cut, yet the budget set cannot accommodate even a R50 increase in living expenses. With the recent petrol and electricity hikes and still more on the cards, you need to have at least around 5% room for movement in your budget. Truthfulness with your debt counsellor will help you not to set yourself up for failure further down the line. In debt review, you must make your monthly repayments without interruption. A single month’s default can result in a termination that would be very hard to have re-instated in court.

Empower yourself by asking for advise when it is needed. A consultation with a good sequestration attorney will not cost you even one cent.

Sequestration can end the nightmare but it’s not always the solution as you can be too poor even to be sequestrated. What does work for everyone is proper professional advice before desperation sets in.

Sequestration SpecialistGauteng and SurroundsCall Diane Lodewyks 011 025 5440/1/2www.lodewykslaw.co.za

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glue, you sell him a whole new life.Christopher Morley

LIVING ON LESS

Pimp your brainWhen under debt review, money is tight. Your Debt Counsellor will have given you a strict budget figure to work with and sticking to that figure can be a challenge. Often what happens is that because money is so tight you have to miss out on a lot of fun things that you might have done before. However being under debt review does not mean that life needs to come to grind to a boring halt and relaxing and good times go out the window.

For some, reading is a passion, for others a burden. So it really depends on your personal preferences, but as Charlie Jones once said “You’re the same today as you’ll be in five years except for the people you meet and the books you read.”

You remember books don’t you? Its like a Kindle, but with only one story loaded...oh and its a lot cheaper too. True, buying new books from a book store can be pricey so...don’t. There are tons of second hand book stores out there which charge a pittance for great books. By joining a local library (which normally will cost you a small once-off joining fee) or asking your friends if they have books for you (which will cost you nothing), you can spark your imagination and get some relaxation all in one.

Our lives are full of stress and aggravation during the work week. The phone never stops ringing and people are constantly demanding things of us. We struggle to get old work done because of new emails and demands from clients. Wouldn’t it be nice to find a moment of quiet every now and then and just unwind? Reading can do that for you, find a comfortable spot at home and take some time for yourself.

If you are missing DSTV (a victim of your cruel, unfeeling Debt Counsellor) well, now you can settle down with a warn cup of coffee (or milo) and be swept off to far distant vistas and engage your imagination.

Suggestions:

To much of a tough guy to read a novel?

Try: Sun Tzu’s The Art of War or the very helpful Secrets of lock picking.

Why not learn more about the industry you work in and improve in your skills? Many online resources feature free university text books for download.

When most consumers enter debt review, they have several contracts active for various services. For example they might have a cell phone contract (or several) and a gym contract. At the time of the debt review it is normally impossible for the consumer to get out of these contracts. Normally the review is concluded in a very short period of time and the contracts are normally over 12 or 24 months. As a result normally the Debt Counsellor will included such contracts into the consumers budget section when making proposals to creditors and later to the court itself. When the court order is then granted the repayment amount is set as is the consumers monthly running costs. Consumers are encouraged to stick closely to their budget and even save funds if at all possible or budgeted for.

Over time consumers might begin to feel the pinch as the price of food. electricity and fuel increase. What can be done to help consumer alleviate the pressure of rising running costs?

One area that can be looked at is those abovementioned contracts. Over the course of

the debt review, it may be that the time period of the contract is now fulfilled. This means that the consumer can hand in notice to the service provider and cancel the service without any penalties or early cancellation nonsense. If this is true, then consumers can effectively free up more funds to cover their living costs.

Normally a short notice period is needed and then the contract can be killed. Consumers can get rid of unnecessary extra phone contracts and can switch to exercising (i.e. Body Rock) at home. In many cases the cost of similar services will have dropped and these services can be paid for (for less) on a month to month basis.

So go on... become a contract killer!

go on... become a contract killer!

CONSUMER

Interested in interest?You need a loan. So you go to a credit provider and borrow R100. They tell you the terms of repayment are over 6 months, and at a 10% Interest rate. They work out your monthly repayment to be: R17.50 per month for 6 months.

You take your calculator, and take R17.50 x 6 and see that you actually paid them R105 over the 6 months instead of just the R100 that you borrowed!

Why is this?This is because of something called “interest”Lets consider what interest is, how it is calculated and how interest works.

1 What is interest?Quite simply, Interest is the cost of borrowing money, or the price you pay for borrowing money from someone else.

2 How is it calculated?Interest is always quoted at a Per Annum rate (or in simple English: Per Year). Therefore, in this example above, the interest on your loan was 10% per year. If you repay the loan in a time shorter than a year, the interest is divided by the number of months of your repayment i.e. 6/12 instead of the full 12 months.

3 How does it work?It is a simple calculation with an easy amount to work with like R100.

Let’s take 2 examples, the one stated above (R100 at 10% interest), and another more extreme example if you borrowed R100 at a 60% per annum interest rate, both with a repayment period of 6 month.

CONSUMER

EXAMPLE 1Borrowed funds: R100Interest rate: 10% per annum.Repayment terms: 6 months.Therefore Interest calculation: R100 x 10% x 6/12 = R105So you will pay pack R105 in total.Repayment term = 6 months: Therefore R105 / 6 = R17.50 per month for 6 months.

EXAMPLE 2Borrowed funds: R100Interest rate: 60% per annum.Repayment terms: 6 months.Therefore Interest calculation: R100 x 60% x 6/12 = R130Wow, so suddenly you will be paying back R130. That’s a lot more, compared to the R105 when paying at 10%.Repayment term = 6 months: Therefore R130 / 6 = R21.67 per month for 6 months.

In both cases the amount borrowed was R100 but one consumer had to pay back R105 while the other had to pay back R130 which is much, much more. Remember, the monthly repayment figure the creditor tells you might be manageable, but you should also consider the total you will be repaying over time. These examples are for borrowing only R100. When you borrow more you will also end up paying back more.The long and short of it is that you will never pay back only the amount borrowed. There will always be an interest amount to consider when borrowing funds. This is after all how credit providers make their money. Always make sure you understand how interest works, and how much you will actually be repaying when you borrow money. Creditors should give you documents telling you exactly how much you will end up paying back in total. If you don’t like the total cost they say you will have to pay then go to another credit provider and ask them for a better deal.

Wayne CoetzeeEmail: wayne@wcca.co.za

10%

60%

This insurance policy for those in debt is the 2. It is the first insurance cover designed first and only scheme of its kind in South to cater for your needs – because we in The Africa. It is ONLY available to individuals Debt Counselling Industry understand the under debt review. The group life structure risks you face. Many other plans do not pay ensures affordable rates. out when a claim is lodged simply because

you are in debt review. In contrast, this plan The product was developed by The Debt is specifically for individuals in debt review. Counselling Industry in consultation with We care and we acknowledge your unique Tennant Life Benefits and is underwritten by circumstances.Channel Life brought to you by the Sanlam Group. 3. This cover addresses the issue of

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multiple agreements and how 1. In the event of death, it guards against expensive these credit life plans can be.

the risk that loved ones will be left in Costs increase as interest is added financial distress should the debt be monthly on top of the principal debt settled from the deceased’s estate. This amount.cover clears debts that might otherwise be ‘inherited’ by the deceased’s loved Once you join The Debt Counselling ones. (This is a huge risk that faces any Industry group life scheme, you can make spouse married in community of sure these insurance charges are stripped property, and also for those married out out of the repayments by sending a simple of community of property but with an notification to all your credit providers ante-nuptial contract with accrual). telling them of your new cover. This scheme

theDCI launches First group Life Cover For Over Indebted Consumers

provides substantial credit life cover paid for having to prove you are healthy) is R500 000. by one premium at a highly competitive You cannot be refused the first R500 000 of rate. Replacing multiple credit life provisions cover irrespective of your health.with The Debt Counselling Industry scheme can save you thousands of rands over the Cover costs R1.62 per R1000 insured. Cover duration of these loans. for total debts of R500 000 would therefore

cost R845 a month.You and your debt counsellor must ensure your mutually agreed monthly budget Cover runs for as long as you are under debt includes the group life premium. review. Premiums are paid by monthly debit.

Repayments stop once you are debt-free.In the event of death, the scheme ensures debts with credit providers are cleared. Any You may join from age 18 to 64. Cover money left over goes into your estate. terminates at age 65. The product does not

include disability or retrenchment cover.It is easy for anyone under debt review to join the scheme as cover can be arranged Note, exclusions apply; for example, no by your debt counsellor, who can help you benefit is payable should death occur due to:fill in the form. Your debt counsellor will be aware of your total indebtedness and can • Suicide or intentional self-inflicted injuries;help you determine the extent of cover. This • War or riot;is fixed when cover is taken out. • Substance abuse;

• Participation in hazardous activities or Minimum cover is R50 000 and maximum dangerous workcover is the amount you owe creditors or R1 million. The proof-free limit (cover without

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Contact life@thedci.co.za for further information or application

debtstar

Debt VaderSuccumbing to the addiction

CONSUMER

Have you ever just sat back in your office chair (aboard the Death Star or wherever) and wondered what goes through the mind of a debtor who defaults on his Debt Re-arrangement Court Order! This was his last chance, and he just threw it away. You wonder if perhaps you missed something in the initial interview, some hidden expense, like a maintenance payment he hasn’t shared with his present partner?

My friend is a psychologist and after my continuous moaning, he finally just asked me: “Have you ever considered that it’s just

his nature to be a defaulter, which is why he applied for Debt Review in the first place?” (Honestly, it had never crossed my mind until then!). So I did some digging, and what do you know, there is a legitimate addiction called Spending Addiction - SHOPAHOLISM (I’ve always just thought of it as “Retail Therapy”. You know, maybe pick up a nice new shiny Light Sabre when I’m feeling down.

What’s this got to do with Debt Counselling? Seriously, what were the DTI thinking when they called us “Counsellors”? I don’t do traditional counselling in my consultations and generally breakout into hives when someone cries or spills their guts (the Sith are not typically known for sympathy). Debt Counsellors establish a plan for debt relief, typically confirmed by a Court Order (because you can’t trust Credit Providers). I got to thinking that maybe we where missing something, don’t get me wrong here, I’m not talking about psycho-babble, I always say: creating debt is similar to “accidental pregnancy”, you don’t fall over get up and voila you’re pregnant! Creating debt took both parties, and both need to take responsibility and accountability for the mess they created.

the Sith are not typically known for sympathy

However, I do believe that people who default under Debt-Re-arrangement Court Orders require something more than what we as Debt Counsellors are trained to offer them. They require insight into their own spending habits and need to realize that their behavior is similar to other addictive behaviors such as problem drinking (alcoholism), gambling and over eating addictions, except their “fix” comes in the mail from the Credit Providers, directly to their door, in the form of a credit card. These consumers spend because spending offers immediate gratification, a sense of power, control, self-worth and being problem free. For these individuals it truly Isn’t about the price tag but each “cha-ching” of the cash register puts them on an exhilarating high! Throw In an instant-access culture – in which we can get answers on the internet in seconds, have a massage chair delivered to your starship overnight (Guilty!!) and watch movies on demand – and we’re not exactly training the next generation to delay gratification.

It also explains why when a consumer is retrenched, he will default almost immediately and will just not inform his Debt Counsellor of his changed circumstances, because this addiction can also be exacerbated by depression, anger and stress. These feelings become more prevalent, with a good dose of guilt thrown in, once he realizes the repercussions of all the overspending, which in some instances comes too late and results in legal, social and relationship problems.

Scientifically it works like this: There are chemical messengers known as neurotransmitters that carry communication from your brain throughout your body. When

you’re anxious, nervous, or feeling worried, you get a flood of panic-inducing epinephrine that can feel like pure jet fuel. When something happens that makes you feel especially good (like when you buy something!), you get a rush of incredibly satisfying neurotransmitters called serotonins that feels GREAT. Spending addicts crave the high they get and thus will spend money regardless of the consequences (does this ring a bell for you?). These behaviors amongst other traits, stem from fear that the façade you have built will crack and everyone will see the “real you”: a fraud, a pretender or a failure. Debt Review can be another way for these consumers to delay any such revelation.

What these consumer’s need is rehabilitation not the punitive effects created by the greedy attorneys employed by the Credit Providers. These consumers have been with their banks for years and that loyalty is not rewarded at all. Again, it comes down to, in my opinion, 2 factors:

• Person’s under Debt Review are held to a more stringent standard for debt enforcement procedures; and

• Call Centres

It seems like the banks employ the most incompetent persons they can find and then

Maybe pick up a nice new shiny Light Sabre when I’m feeling down

purposefully offer them no training of real value, so whether you are a Debt Counsellor or a consumer you are left frustrated just trying to get through to them only for the consultant to treat you like you are merely a number.

When the voice on the machine says: Press 3 for self-help??? SERIOUSLY!! (Okay, so this is my private gripe, but seriously, self-help?). I’m not going there because the editor won’t let me.

So, what to do? It is recommended that spending addicts seek professional behavioral counselling or a self-help group to deal with this problem. Addictive behaviors tend to come in clusters, so if you have an eating disorder, a problem with drugs or alcohol, or gambling, you may be a candidate for shopping addiction.

The industry needs to start looking past the numbers and realize that we are dealing with human lives. There are objective tests accredited by the Human Sciences Research Council which can be used to determine if a consumer fits this profile. Observations about personality are a very important component of any credit decision. Even in highly systematized and automated businesses, Credit Providers need to ascertain how in the future they are going to incorporate personality characteristics into their credit granting and decision making formula. Without taking these softer issues into account poor credit decisions will continue to be made resulting in reckless credit granting.

Mail your comments to Debt Vader on debtvader@debtfreedigi.co.za

Maybe pick up a nice new shiny Light Sabre when I’m feeling down

Are You: a debt counsellor?

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It is very possible that your home loan has been settled in full by a third party, called a Special Purpose Vehicle (SPV).

Because your loan has been settled in full (ie. the bank has been paid out for your loan), the bank cannot bring your case to court. Under these circumstances, the collections process undertaken by banks, and any judgments taken by the bank as a result, would be unlawful.

Once a loan has been securitised (this is the technical term for this process), the bank loses the legal right to the asset. Confirmation of this was given to the New Economic Rights Alliance in documentation from the South African Reserve Bank.

Unfortunately the banks “neglect” to tell the customer that their loan has been settled thanks to securitisation. This is why The New Economic Rights Alliance, a non-profit organisation, was formed. We are here to educate the South African people, and take legal action if required.

Legal action is happening right now in support of this action and it is saving houses. Take for instance the case of Mr Plumstead. The day before Mr Michael Plumstead was about to watch his family home being auctioned, an urgent application was brought before the Port Elizabeth High Court. Among other things, Mr Plumstead (the Applicant) stated the following:

Why You Need to Know if Your Bond is

Securitised

“15. It is the Applicant’s intention to settle the arrears with the lawful holder of this debt.”The auction was temporarily suspended by the Court... but then suddenly the bank backed down. The entire case was removed and the bank agreed to pay all legal costs.

Now... why would a bank abandon all their hard work and withdraw a case when the debtor agreed to pay the arrears? Well, look at the words carefully: Mr Plumstead agreed to settle with the “lawful holder of this debt.”

If you read the supporting affidavit of the Plumstead Case on page 19, you will see the securitisation argument. You can view the full document here:

Once again NewERA maintains the following: If your loan has been securitised, not only has your legal status with the bank changed, but your debt with the bank no longer exists.

http://downloads.newera.org.za/NewERA/PlumsteadCase.pdf

Visit http://news.newera.org.za/bf.php?fid=1233 for the Debt Counsellors survey

Achievements

Thousands of consumers have visited www.thedci.co.za to educate themselves about debt, debt counselling and debt relief. First in SA­ the only long and short term insurance products underwritten specifically for consumers in debt review. theDCI was pivotal in protecting consumer's rights from abuse by the voluntary debt mediation system which credit providers wanted to create. The largest base of verified, practising Debt Counsellors in SA. Financially Free IQ ­The only wellness programme of its kind to offer specific benefits to all consumers in financial stress. Exclusive Partnership and pricing with Credit Dot Cozaa for consumers to know and understand their credit status.

CONSUMER

DEBT COUNSELLORAchievements theDCI has referred hundreds consumers to DCs for assistance. theDCI has hosted a specialised debt counsellors only online forum where Debt Counsellors discuss industry issues daily. Debt Counsellors can download debt review judgments at www.thedci.co.za to enhance their learning and see recent legal precedents. theDCI was instrumental in ensuring that debt review was left to Debt Counsellors rather than creditors, in opposing the plannedVDMS project. DCs can now do credit reports, traces and deed searches within theDCI. Pricing is exclusive to theDCI members Secure online support for DCs from the industry and legal experts

1Year of achievements

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 BudgetTel: 021 824 8885

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 SeriousWe are serious about debtVida Scheepers NCRDC1792Po box 394, Garsfontein, Pretoria 0042Fax no: 086 553 9403vscheepers@mweb.co.za

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

Debt eezyYour Debt Solution made EasyAshley Carstens NCRDC858 Tel: 021 839 2809 Fax: 083 512 4160 / 086 665 9125 Email: debt.eezy@gmail.comWebsite: www.thedci.co.za

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

Debt Management & Counseling Services“The greatest glory in livinglies not in never falling,but in rising every time we fall.” - Nelson MandelaDerry Burge NCRDC108140 Irene Avenue, La Concorde,Somerset West, 7130 Tel: 021 855 5997 Cell: 074 177 5375 Fax: 021 855 1195 or 0865413200E-mail: dburge@telkomsa.net

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

SERVICE DIRECTORY

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

Help-U-Debt (Vanderbijlpark)Herma083 320 8303

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 CC

Tel: 087 808 9734 Fax: 086 580 8675 indigodc@iburst.co.za

MG Consulting Strand - Helderberg AreaTelkom : 021 853 4537 Mobile Phone: 082 450 7459Fax Number: 0866 220 690E-Mail: info@mgconsultingwww.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

Rihanyo Debt Counselling(012) 804 50 57

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

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

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

The best angle to approach debt is the Triangle

Caledon - Western CapeContact Person: Yolande8 Hoop Street, 7230 Caledoncaledon@triangletrust.co.zaTel: 028 212 2537

Ceres - Western CapeLeyll str 61, 683 Ceresandre@triangletrust.co.zaTel: 023 312 1292Fax: 023 312 2119

Worcester - Western Cape71 Porter Street 6850 Longitude: 19.44305Latitude: -33.64942worcester@triangletrust.co.zaTel: 0233420576Fax: 086656801

Bloemfontein - Free State94 Zastron, 9301 BloemfonteinContact Person: Yolandebloemfontein@triangletrust.co.zaTel: +27 51 448 2828Fax: +27 51 447 9481

Viljoenskroon - Free State35 Denyssen Street, 7230Contact Person: Johann Olivierviljoenskroon@triangletrust.co.zaPhone: +27 56 343 0352Fax: +27 56 343 035

Welkom – Free State329 Stateway, 9460 WelkomContact Person: Susan RouxEmail: welkom@triangletrust.co.zaTel: +27 57 352 6117Fax: +27 57-352 2355

DEBT RESTRUCTURING SERVICES

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 CHOICEAndrea 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.zaDRS 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 1189

SERVICE DIRECTORY

SERVICE DIRECTORYEmail: 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 KOKSTAD Melanie 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

SERVICE DIRECTORYSUPPORT SERVICES

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

You & Your MoneyWestern Cape: NCR Debt Counsellor Training: For a Cutting Edge Course with practical input contact: You & Your MoneyDawn JacksonDawnjackson.training@telkomsa.netCell: 072 1769789(021) 761 3287

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 7912

Fair 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.zaBoksburg / GermistonContact: Armand PosthumusTel: +27 11 8921911Fax: 0865620378

NelspruitContact: Ann BakerTel: +27 13 7415559Fax: 0880 1374 15559Cell: +27 82 9024236jeleroux@telkomsa.net

SpringsContact: 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

SERVICE DIRECTORYLEGAL

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

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

O’Connell & AssociatesAttorneys at LawKeegan O’Connellk.oconnell@oalaw.co.zaTel 021 462 1663Fax 0866 504 550303 Millborough, 70A Upper Mill Street, Vreedehoek, Cape Town,8000

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.za

RM Brown and Associates 601 Pier House, 13 -17 Heerengracht, Cape TownTel: 021 431 9127, f: 021 425 0875 Email: oliver@rmbrown.co.za

Scheepers AttorneysGerhard Scheepersschlaw@iburst.co.za

Agiliti 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.za

Experianwww.experian.co.zaBusiness- 0861 63 60 70 Consumer- 0861 10 5665

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

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

If you want to subscribe, advertise or be listed in our directory please contact us! magazine@debtfreedigi.co.za

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