NEWS CONTINUED
then goes to court for a debt restructuring
court order. This stays in force for as long as the
consumer pays according to the arrangement.
Later the Consumer’s situation may change
drastically and they may be able to leave debt
review sooner than planned or they may pay
according to the plan and come to the end of
the arrangement with all their debt settled.
The NCR issued a guideline on how to treat the
process when someone wants to leave debt
review. Not too long ago the National Credit
Act was amended to allow for consumers who
had paid up all their smaller debt to leave the
process sooner. Thus the process changed
somewhat and the NCR issued a new guideline
or non binding opinion. The guideline
highlights that the process is a serious one and
should not be undertaken lightly and without
commitment to the process. The NCR wish
to help create uniformity across the industry
with how the withdrawal process should be
conducted.
DOWNLOAD THE GUIDELINE
http://debtfreedigi.co.za/wp-content/
uploads/2016/03/Withdrawal-from-debtreview-NCR-guidelines-Feb-2015.pdf
NCR ISSUE MASSIVE
R1 MILLION FINE
According to the National Credit Act if a person
or company want to issue credit to consumers
they have to register with the National Credit
Regulator. The idea behind the legislation
is to stop the prevalence of loan sharks in
communities across South Africa. These loan
sharks have a terrible reputation for taking
advantage of those they loan funds to. The
NCA also requires that after registration the
credit provider pay an annual fee so that the
NCR can keep an eye on who is currently in
business. The NCR have reminded registrants
that they do not have to remind them of the
annual renewal of their registration fee (though
they do via email normally). If the annual
renewal fee is not paid then the registrant is
technically not allowed to trade. Recently the
National Credit Regulator took action against
an unregistered (un-renewed) credit provider
Akudle Kutshiyele who operate in Nelspruit in
Mpumalanga. The firm had let their registration
lapse without renewing but had continued
to offer new credit to consumers. The matter
was referred to the National Consumer
Tribunal who handed down a R1 million fine.
The fine covered not only offering new credit
while not renewed but also granting credit
to consumers without checking if they could
afford it. They also on many occasions did not
inform consumers in advance in a quotation
or “pre agreement” document of what the
total cost of the credit will be. This means that
they were offering “reckless credit”. Akudle
also took consumers bank cards and ID books
from consumers borrowing funds in an effort
to enforce payment of their loans. This is illegal
and if a credit provider (big or small) ever ask
you for them you should report the matter to
the NCR as soon as possible or simply refuse.
‘GARNISHEE’ CASE GOES TO
CONSTITUTIONAL COURT
The all important Constitutional Court case
regarding Emoluments Attachment Orders
– EAOs (often called Garnishee Orders) was
heard on the 3rd of March 2016. The case
began a long while back in Stellenbosch
in Cape Town and has to do with a specific
number of EAOs against several farm workers