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Underwritten by the Nasional Credit Act 34 of
2005
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An opportunity for the consumer for relief of
over-indebtedness the legal way
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A way for the consumer to get educated
Get educated in what?
The consumer will be
educated in:
·
Successfully drawing up a practical monthly
budget
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Good financial habits e.g.
·
Saving for unforseen surcumstances
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Calculating a maximum on expenditure towards
groceries, fuel, cellphone costs, etc.
·
Saving on water and electricity
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Recalculating of short- and longterm insurance
on a regular basis
60 Business days
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According to section 86(10) of the Nasional
Credit Act 34 of 2005, 60 business days needs to be allowed for
negotiations and proposals in order to reach a conclusion.
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Income
(minus Expenses)
· Groceries
· Fuel
· Water & Electricity
· Insurance
· School fees
· Maintenance
· Telephone costs
· Provision
account
(clothing, vehicle repairs/maintenance, household maintenance, stationery
etc.)
· All other household
expenses
Total Income – Household Expenses = DEBT AMOUNT
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60 Business Days
explained
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· The Act protects your
movable and immovable assets against repossession. As soon as you register
on the program, credit providers may not take any further legal action
against you or repossess your property.
· All your household
expenses are listed in your monthly budget, eg. groceries, fuel, schoold
fees, water & electricity, insurance, telephone costs, medication.
Therefore, as long as you commit to the budget, you will be able to afford
food, refuel your vehicle, pay monthly school fees, have electricity, have
peace of mind of insurance and afford the chronic medication without
receiving an unwanted phone call or a knok at the door.
· Unforeseen expenses are
allowed for, eg.: clothing, vehicle repairs/maintenance, household maintenance,
stationery, school tours, etc.
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The running accounts (e.g.
insurance, school fees and telephone costs) are paid via debit order.
Provision is made by calculating
an amount that is paid monthly into a seperate account, for saving
purposes. This can be used as necessary.
Debt is paid via stop
order or by way of a PDA (payment distribution agency).
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2.
You will be contacted with further arrangements,
or to answer all your questions.
3.
You are signed up and registered, which means
that a note will be written against your name, on your credit record, in
the line of “Applied for Debt Review”.
4.
Notices are sent out to all your credit
providers, advising them that you have applied for debt review.
5.
You start to work according to your new budget
from your next salary date.
6.
Your application goes through an assessment.
Should we establish that you are over-indebted, further notices are sent to
all credit providers.
7.
Proposals are established and submitted to
credit providers.
8.
Each credit provider answers by accepting our
offer, or they might submit a counter offer. Credit providers might decline
these mentioned offers.
9.
Where applicable, a case may be sent to court.
10.
The count application gets accepted or returned
for further assessment.
While this is happening...
· Payments must be made
according to the proposals, already from month 1.
· Household expenses (groceries,
fuel, telephone, etc.)
· Running accounts (rent,
school fees, water & electricity, insurance, etc.)
· Debt (we supply you with a
payment breakdown with account and monthly payment details) – needs
to be paid.
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For those of you who are pressured by awful
telephone calls or sms's or nasty letters from debt collectors - GOOD
NEWS!! Here you will find a link that will take you directly to the Debt Collectors Act of
1998. If you suspect that
you or your wife/husband/family member/friend/child is being victimized,
harassed, humiliated or mislead by a Debt Collector, please check out The Act on that. Like the National Credit Act 34 of 2005 is
governed by a council (the National Credit Regulator), The Debt
Collectors Act of 1998 also has a council. You can compare the
service that you have received from the Debt Collector against his/her Code
of Conduct according to the Debt
Collectors Council. Go read up more on their website should you need
to take action and would like to know how. Back to top
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· After you have settled all
of your debt obligations and you therefore are debt free, we supply you
with a ‘Clearance Certificate’ which confirms that you are debt
free.
· This certificate is sent
to all credit bereaus and within 5 business days, your name needs to be
cleared completely on their system.
· Any ‘defaults’
or ‘judgements’ which showed on you name, needs to be removed
by yourself. (if you need, we will give free advise regarding this)
Procedure for de-registration
Should a consumer not
comply with the program, the Debt Counsellor is required to supply the
consumer with a warning regarding de-registration. A notice period of 10
business days needs to be supplied, before de-registration can take place.
Consumer’s complyance to the program:
· A consumer needs to
include all debt agreements on the debt counselling registration, even
accounts which have been paid up to date. If payment are outstanding, we
need to be advised of this.
· All necessary and relevant
documents needs to be supplied. The debt counsellor cannot afford to
struggle to receive documentation or information, as the process is delayed
and the consumer’s profile cannot be neclected during this process.
· A consumer may not keep
information from the debt counsellor, such as income. The debt counselling
program can provide proper debt relief, should all relevant information be
provided. An application can also be declined due to non-disclosure. Should
the court get aware if this type of complyance, this could have negative
results.
· OR THE WHOLE TRUTH AND
NOTHING BUT THE TRUTH, OR YOUR HOUSE, VEHICLE AND FURNITURE!!
Results of possible de-registration
· The report on the
consumer’s credit record is changed to “voluntary de-registration” and remains on the systems for a 6 month
period
· Should the consumer be in
arrears on any credit agreement, legal action may be taken against him/her
(even repossession will in this case be legal, should a section 129 letter
be submitted before such action)
· All outstanding fees
towards the debt counsellor is immediately payable
· The consumer may re-apply
for debt counselling through any debt counsellor
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