Reading Time: 7 minutes
Industry Event Roundup
.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}
Debtfree Magazine recently got to attend the DCASA Western Cape regional meeting.
It has been a while since we have joined such a well attended, upbeat and optimistic Debt Counsellor meeting.
.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=”.svg”]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}
CIF Feedback
Nadia VD Weerdt who is the Western Cape DCASA representative opened the event with her usual enthusiasm and after revving the crowd up with some vocal exercises went right into some updates from the National Credit Regulators Credit Industry Forum (CIF).
The first thing on the list and the cause of much of the excitement of the moment related to the new updated NCR Task Team Agreement review. This is commonly being referred to as Task Team 2.0 and will be aimed at some quick improvements to industry issues.
Mr Timmy vd Grijp will the chair TTA discussions on behalf of the NCR. This made the audience very happy. The crowd actually responded with a spontaneous round of applause.
Nadia congratulated the DCASA president and Eastern Cape representatives for their efforts so far in promoting the project.
She then encouraged members to make suggestions (and to think outside the box).
Other points highlighted from the CIF meeting and other DCASA projects were that MFSA say 85% of consumer applications get rejected (and these are for smaller loans).
There has been a NCT filing fee increased by 7.5%
NCR certificates will soon be up for renewal. Members were encouraged to apply early.
Standard Bank upset DCASA members with their advert saying that SBSA offer ‘debt review services‘.
DCASA have asked them to change it.
Sponsors and Presentations
Eddie from DCCP spoke next about credit life insurance.
DCCP have been offering niche products to consumers under debt review since 2019.
Debt Counsellors can talk to them about suitable products for consumers and they help ensure FAIS requirements are met.
DCCP say they will always save the client some money and that they also ensure that they cover the PDA and Debt Counsellor fees in possible payouts.
Savings in this area can be used by the consumer to match counter proposals or increase repayments to credit providers (The rate can be adjusted by the Debt Counsellor according to their preference down to R2:20 per R1000).
Insurance instalments can be set up to go via the PDAs or several other methods for those who prefer to keep these processes separate. DCCP are now API integrated into Simplicity and continues to be integrated with Intuitive.
One benefit to consumers is a single point to make the claim when needed as opposed to running around to a bunch of different credit providers and filling in all their claim forms.
Eddie then discussed the new updated guidelines regarding signing consumers up for insurance. The guideline relates to consumers being offered the same product or minimum benefits as outlined by the Regulator.
‘Some banks have been a bit difficult’
Some banks have been a bit difficult and at least one has asked clients to walk into a branch to confirm their ID (or call a number that has a long waiting time).
One thought that was raised during the ensuing discussion was that once an insurance premium is missed it should be suspended and then once a second payment has been missed the policy should lapse.
There is concern that the banks may just be taking funds out of the debt review payments to keep it active which then throws off the planned payment cascade and causes end balance differences.
Many lauded the performance of Consumer Friend in regard to this matter as they seem to be able to get this right while others struggle or are dragging their feet.
DCCP are discussing the topic with Capitec Bank in regard to their policies (and the reducing instalments based on reducing balance). One challenge is: how do Capitec update DCCP on all the thousands of balances each month so they can adjust the cover?
NCT Presentation
Lethabo Sekoaila discussed the purpose and functions of the NCT.
Have played a critical part in regard to consent orders for debt review matters. IN attendance were both Prenesen (Registar) and Bax (CIO).
An interesting point that was highlighted was that as a tribunal they are guided by past judgments or president but they are not bound by their own past rulings.
They then highlighted both manual and efilling (which they prefer) processes. Some time was spent on the benefits of efilling.
The current turn around time for orders at the NCT is less than 35 days.
For those wishing to make best use of the system the NCT offer training on the system every Friday (via MS Teams). To get access simply email registry@thenct.org.za
Debt Counsellors in attendance asked for API integration into the various PDAs. The NCT say they are keen to integrate in the future (there may already be some testing happening and integration with some large Debt Counselling practices).
They say that by September the system will be twice as fast. This has been under development for a while.
They are also looking at AI integration or inclusion during the submission phases.
A future goal is to bring application fees down by better use of technology. To develop that technology there have been some increases in submission costs temporarily.
The NCT confirmed that they are eager to work with the NCR Task Team and will make submissions
NFO
New to the debt review scene was the National Finance Ombud.
The NFO can handle any product that has to do with a financial product. They have the discretion to decide if it falls within their scope (eg. they can handle induplum matters or debt review related matters involving credit providers and banks).
Like the NCT each matter is decided on a case by case basis.
They first presented some background info about the NFO and then showed 3 case studies of how they can get involved in debt review matters.
One case had to do with balances, another had to do with with insurance. It was clear that they have strong views on consumers’ rights in regard to substitution of insurance.
The NFO reiterated that they are willing to get involved and shared their contact info.
Hyphen PDA
Saishen Krishnan (SK) and the Hyphen and the Simplicity team were on hand to make some presentations.
SK shared that Hyphen PDA is one of the 4 NCR registered PDAs. They were established all the way back in 2008. He says that all PDAs play a crucial part of the industry. Currently the various PDAs are distributing almost R1.5 Billion a month.
Johanna (from the Hyphen finance department) then discussed how due to the Act and Regulations a Debt Counsellor cannot distribute funds for a consumer. They also normally can’t take fees directly from a consumer. This is where PDAs come into play.
She discussed the debt review industry structure and the role of PDAs. Hyphen are proud of their detailed reporting abilities among other offerings.
Did You Know?
Funds are only held by PDAs for 5 days (max).
SK then shared some insights and trends they are picking up.
At present, the PDAs get roughly .08% of the consumers’ debt repayments over time.
He was happy to share that Debicheck has drastically reduced disputes. These days when DebiCheck fails it is mainly due to a lack of funds.
SK warned that fraud and email scams are in the increase. This is why consumers can search in banking apps for Hyphen PDA as a beneficiary. Debt Counsellors can help their clients be vigilant (especially of requests to change or move banking details for debt review payments).
Did You Know?
The 25th is the largest collection dates, followed by 1-3rd of the month.
Finally, SK discussed recent court cases showing that if your email security is lacking you may face ramifications.
Grant from Bitech (who produce and manage Simplicity) then discussed at high speed the features and benefits of Simplicy.
He discussed the core functions (like the dashboard showing how much interest the process is saving the consumer) before diving into extra features and upcoming functions that will soon be available to users.
The system can help Debt Counsellors structure various fees. For example, it can help defer some fees to ensure payments to credit providers get payments timeously.
Simplicity is integrated with Consumer Friend and FNB (through Slipstream’s data switch) which means information can be pushed and pulled in a data safe environment. It also allows for pushing information into the NCRs DHS system (which allows for uploading or updating information about consumers with a click).
The system works well and is able to reconcile the “proper fees” with DCRS among other features. The system really allows for lots of customization and lots of custom reporting as well.
Some Debt Counsellors in the audience shared how they have customized and personalized documents on the system and are very happy with the results.
It also has a sandbox feature where Debt Counsellors can experiment with different repayment plans and you can try out how things might look with integrated products (like savings due to insurance replacement). This allows for better proposals without confusing credit providers.
Debt Counsellors can integrate with custom CRM systems, lead databases, SIP telephony, can send sms, emails etc from the system and can customize messages (including automated correspondence). It also allows consumers to supply data and sign documents.
New system features include freezing and unfreezing client plans while you mess with it for one reason or other. They have now updated the DebiCheck interface. Upcoming features include Whatsapp integration and custom interface layouts.
SOme prizes Before Heading Back To The Office
As the day drew to an end 4 DCASA members found themselves in the running for and winning a fully paid trip to the DCASA conference and a midweek getaway with the help of sponsor Hyphen PDA (flights) and Sandton DC (accommodation).
The event was very well attended and guests all seemed more positive and upbeat than in the past. Many guests lingered as long as they could since they were having such a good time.
If you would like to know more about DCASA why not head over to their website (www.dcasa.co.za) or social media pages.
The post DCASA W Cape Hosts Upbeat Meeting first appeared on Debtfree Magazine.