The Do's and Don'ts of Debt counseling

 

I have not recently revisited this page but in the past month, I have been inundated by requests for help with people being contacted about old debt that very evidently has been prescribed to entice them to start paying. And there is a definite sudden action from financiers to make use of collection Attorneys threatening people with summonses. This is worrisome and an indication that the economy is making it problematic for a lot more people to survive. Interest rates are skyrocketing and salaries are not

There is also an increase in all sorts of advertisements enticing people to go for Debt counseling. Debt counseling per see is not a swear word but beware of how it is handled and with whom you engage in the process.

As a retired banker I understand the challenges facing debtor clients and for this reason, I have assembled a team of experts to help you in making the right decision. Our first interview is free and we will guide you to enable an eventual debt-free future

Send me an email at brandow@law.co.za or a WhatsApp to 082 222 5002 and I will call you

INABILITY TO PAY SCHOOL FEES AND POSSIBLE LEGAL ACTION RESULTING FROM THIS

 

The issue of parents being summoned and getting default judgments against them for not paying school fees is the issue here.

I am going to guide parents on how to handle the situation. If you follow my lead, there is no way a school will succeed in getting a judgment against you unless you legally do not qualify, and you do not pay school fees.

Background:

1.       FOR THE GOOD OF THE CAUSE MAKE COPIES OF EVERY COMMUNICATION WITH THE SCHOOL AND LET SOMEONE SIGN FOR RECEIVING ANY DOCUMENTATION FROM YOU.    The best method would be to send emails to the school and request delivery and read receipts.

2.    Record all communications with the school no matter with whom you speak regarding the issue of school fees.  This can be used in any legal fight you might end up in. And the law says that you do not have to inform anyone that you are recording them if you are part of the conversation. All cell phones have a recorder as an app available. If you speak to them telephonically record the conversation on another phone. You can file these recordings electronically.  

3.       If you cannot afford to pay school fees to public schools the law provides you with a means to get an exemption if you qualify.

4.       The school administration (and by implication, this is the responsibility of the principal) must supply you with the necessary forms to apply for an exemption. There is no prescribed      pre- approval system.

5.       Qualifications are prescribed in the South African Schools act 84 of 1996 that came  effect    on the 1st of January 1997, and Circular 86/2007 Date:  04 December 2007 

6.       The basic requirement is that the school MUST supply you with the prescribed forms as per    the act whenever you request this.

7.     THE ONLY QUALIFICATION IS YOUR GROSS INCOME and nothing else.

8.     You must be able to PROVE your gross income beyond any doubt.

9.       If you are employed you will be able to supply payslips.

10.   If for any reason the school requires bank statements, and you have nothing to hide give it to them. Be nice.

11.   If the school requires of you to submit an affidavit of any sort and you have nothing to hide supply them with it.

12. If the school requires of you to supply stamped documents from banks that you do not do business with, politely refuse.  This is an illegal requirement, and it cannot influence the approval of your request. (See points 1 and 2 above)

13.   The school CANNOT request details of assets and liabilities or income and expenditure details.  These are illegal requirements, and you can politely deny their requests. (See points 1 & 2 above)

14.    IN ALL COMMUNICATIONS DIRECT YOUR CONTACT TO THE PRINCIPAL.

15.   KEEP CLINICAL RECORD OF ALL YOU DO and all reactions you receive from the    school  AS IF YOU EXPECT THE WORST.

16.   If your request is denied ask for specific reasons in writing. The ONLY REASON can be that you do not qualify in terms of the Act quoted above or that the school might suspect that you are lying about something. They have to give this to you in writing ( see points 1 & 2 above)

17.   If it is approved – good luck!  But if you can afford to pay for something please do so.

 

Now let us get to the worst-case scenario.

 

Summons and Judgments

 

The law requires the school principal in person to address the problem of non-paying parents by contacting them personally about this. If this happens keep a record of the interaction (Points 1 & 2 above)

If you do not apply for an exemption or you do not qualify for an exemption you are legally in default and the school can issue a summons against you, get a judgment against you, and follow every step that the law allows them to get the money from you. This can include a garnishee order against your salary or attachment and selling off your assets.

 

Now it seems that some schools deny an exemption for illegal reasons and then go ahead and summon parents.    If you are one of those and you have your written or recorded records you have a 100% chance of winning any action against you. BUT YOU MUST DEFEND THE ACTION. ( this is easy to do yourself – there are documents in the summons that you can fill in and send back to the attorney- see points 1 &2 Above)  Once a default judgment has been taken against you it is practically impossible to rescind it without using a lawyer which is probably going to cost you more than the original school fees.

 

Although it is your good right to refuse to give a school details of your expenses a court might frown about you paying nearly R900 for DSTV while claiming you cannot afford to pay school fees. I don’t say it will get to that, but I just want to make a point here.

 

 

Here is a blog post I wrote a while back that gives insight into what the LAW SAYS ABOUT EXEMPTION :

 

https://activeconsumers.blogspot.com/2018/03/march-2018-government-schools-and.html

 BANKS AND DEBT BUYERS SKULDUGGERY.................

It seems that banks are again selling old credit card and other debts to unscrupulous debt collectors and clients are receiving phone calls and follow-up letters ( sometimes ) to start the act of claiming from debtors that do not know their rights: 

Here follows a few pointers about this:

1. When you get a phone call from a debt collector NEVER confirm who you are before the caller has answered the following questions: 

a)  Who are you?   Spell your name for me.

b)  On whose behalf are you calling? 

c)  Please supply me with your registration number with the COUNSEL FOR DEBT COLLECTORS

d) Please supply me with your company's registration number with the COUNSEL FOR DEBT              COLLECTORS 

E. Who is it you are looking for?   Give me the initials, surname, and id number. 

F   You can now either answer. That is not me( even if it is you) or you can say "that is me"

G. Next:  You ask: Why did you call me?   

From here on depending on what he answered the best is to ask him for an email address where you can respond to his call.   NEVER TRY TO ENGAGE WITH THEM ON THE PHONE - IT IS THEIR ONLY WEAPON. 

If you do get an email address from the caller thank him/her and kill the call

You can now follow this up with an email confirming the contents of the call and remember the words "' WITHOUT PREJUDICE AND WITH ALL RIGHTS RESERVED" 

TEMPLATE INSERTS TO FOLLOW :

QUERYING OWNERSHIP OF THE DEBT

ASKING FOR FULL DETAILS AND INSISTING ON GETTING SAME

INSISTING ON FULL AND COMPLETE STATEMENT OF ACCOUNT. ( 

INSISTING ON THE PROOF OF PAYMENT THAT MIGHT SUDDENLY APPEAR ON PRESCRIBED DEBTS.

  

Mediation - and Creditors

On the 9th of March 2020, the sub-rule 41A of the Rules of the SA Courts came into effect which basically requires of litigants in any action need to complete and sign their acceptance of or rejection of Mediation before the action can proceed in court.

Apart from the banks ( or anyone claiming debt from anyone) has to send the debtor a notice in terms of S129a of the NCA this is now a new requirement before litigation can start.

This is going to be far-reaching in the bank's( and other creditor's ) actions in courts. The S129 notice was basically the last action from the creditor telling the client that he is in arrears and that he can see a debt counselor which could be a way out of litigation. The whole scene changed recently where this requirement is now going to be a major obstacle in any creditor's legal actions. How this is actually going to work is still not quite clear and a lot of attorneys have written about this on their websites. But with due respect to the legal fraternity, I think they do not know how this is going to be applied. There needs to be an INDEPENDENT Mediator involved. It cannot be a bank employee or a bank's attorney - this will amount to serious bias. So who is going to do this and who is going to appoint the mediator and who is going to pay him/her?

Killing the debt monster

Facebook page Killing the Debt Monster

Ever since I have started this blog and the accompanying FACEBOOK PAGE  I knew I had to do something to help kill the debt monster and I am 99% there. Later this month we will be launching a Financial Bootcamp like nothing you have seen before The first presentation will be done live and in front of an audience in Krugersdorp. We will be working through all the elements of Debt Including amongst others the drafting of a budget that works as well as how to handle YOUR EXISTING DEBT. It is not what you think it is. It is going to change your life forever. We will be discussing recent Judgments that are now case law and how it impacts YOU, the consumer and how these can be used to your advantage. It is not going to be a lot of theory. it is going to be practical to help YOU the consumer survive the Debt monster! THE BEST PART OF THIS? THIS FIRST PRESENTATION CAPPED AT 50 ATTENDANTS ARE GOING TO BE FREE OF CHARGE. I AM PUTTING MY MONEY WHERE MY MOUTH IS .....WE ARE NOT PLANNING TO MAKE MONEY OUT OF THIS. IN FUTURE PRESENTATIONS THERE WILL BE A FEE TO COVER OUR EXPENSES A date and venue will soon be available, probably a Saturday. Just send me a WhatsApp or SMS to 082 222 5002with the words, "count me in"and your contact details. YOU CAN ALSO SEND ME AN EMAIL TO johnbrandow@mweb.co.za

Exemption of school fees - what is included ?

   Here is a link to the whole discussion of the act regarding schoolfee exemptions :

    https://activeconsumers.blogspot.com/2015/12/school-fees-and-law-public-schools.html

   

    This article explains everything: 

     

   If you qualify for exemption of school fees in terms of the law and by using only the calculation

   contained therein you qualify for exemption of everything - 

Enquiries: DD Louw Telephone: 021 467 2653 Fax: 021 467 2594 Reference: 3/1/5/B 20061115-0018 Wes-Kaap Onderwysdepartement Western Cape Education Department ISebe IeMfundo IeNtshona Koloni CIRCULAR        :     0016/2007 EXPIRY DATE   :     NONE TO: CHIEF DIRECTORS, DIRECTORS (HEAD OFFICE AND EMDCs), SENIOR CIRCUIT MANAGERS, CIRCUIT MANAGERS, PRINCIPALS OF PUBLIC SCHOOLS AND CHAIRPERSONS OF GOVERNING BODIES ATTACHED TO PUBLIC SCHOOLS BRIEF SUMMARY: Clarity on the definition of school fees in terms of the Education Laws Amendment Act, 2005 (Act No. 24 of 2005) SUBJECT: DEFINING SCHOOL FEES 1. The South African Schools Act, 1996 (Act 84 of 1996), as amended (SASA), was further amended by the Education Laws Amendment Act, 2005 (Act 24 of 2005). These amendments came into effect on 26 January 2006, which was the publication date of the amendment in the Government Gazette (GG No. 28426 of 26 January 2006). 2. The amended SASA defines school fees as follows: "School fees means school fees contemplated in terms of Section 39 and includes any form of contribution of a monetary nature made or paid by a person or body in relation to the attendance or participation by a learner in a programme of a public school." 2.1 The Education Laws Amendment Act, 2005 (Act 24 of 2005) added subsections (5) and (6) to Section 39 of SASA. These sub-sections read as follows: "(5) No public school may charge any registration, administration or other fees except school fees as defined in Section 1 and; (6) A public school may not charge a parent of a learner at that school different school fees based on a curriculum or extramural curriculum within the same grade." 3. The above amendments have the following implications for schools: 3.1 In terms of Section 39(5) of the SASA, schools may not charge any registration, administration or other fee, except school fees. This means that a school should determine its school fees in accordance with Section 38 of SASA and the school fees determined in that way should be the only fees charged to parents. No additional fees such as registration fees, administration fees or any other fees may be charged to parents. 3.2 In terms of Section 39(6) of SASA, schools may not charge a parent of a learner different school fees based on the curriculum or the extramural curriculum within the same grade. This means that schools may charge different school fees for different grades if it was so decided by the meeting of parents in terms of Section 38 of SASA. (It is envisaged that schools may determine, for instance, that the education of Grade 12 learners is more expensive than that of Grade 8 learners and may for this reason set different fees for Grades 8 and 12.) Schools may, however, not charge different school fees to learners within the same grade based on the curriculum or extramural curriculum offered in the school programme. This means that where a school offers additional subjects and extramural activities to a particular grade, the school fees for all the learners in that grade should be the same, irrespective of whether or not they participate in the additional subjects and extramural activities provided by the school. Thus a learner who does not take all the subjects or does not participate in all the extramural curriculum activities offered in the school programme must pay the same school fees as a learner who does. This does not apply to subjects or extramural activities that do not form part of the school programme. If a school decides on subjects or extramural activities, which do not form part of its normal school programme for a particular year, such subjects and activities can be funded through fund-raising events or by requesting additional contributions from parents. However, participation in such events must be voluntary, as must be any contribution thereto. 4. Schools that have been declared "no-fee schools" may also not charge any additional fees for curriculum or extramural curriculum activities offered in the school programme, including the costs associated with any excursions, materials, etc. required for these subjects and activities. This, however, also does not apply to the subjects or extramural activities that do not form part of the school programme. 5. Please bring the contents of this circular to the attention of all concerned. SIGNED: L.J. ELY HEAD: EDUCATION DATE: 2007:03:26 Grand Central Towers, Lower Parliament Street, Private Bag X9114, Cape Town 8000 Please quote reference numbers in all correspondence SAFE SCHOOLS: 0800 45 46 47 CLIENT CALL CENTRE: 0861 92 33 22

The following documents relate to this circular.  Adobe Acrobat Reader® is required to view / print these documents. Click on a title below:  the document will open in Acrobat Reader® where you can save and/or print a copy. To return to this circular, click on the WCED Online logo at the top of the screen. Education Laws Amendment Act, 2005 (Act 24 of 2005)  (size: 215 KB)

  

Your financial future with no Job and no prospects

When you work you will always have a boss. He determines your job description, he determines your income and he basically have the greatest influence on your life.  The intensity might differ from place to place, person to person but these are the facts.

There are ONLY two options in this scenario :   You can work for someone who is your boss or your can work for yourself and YOU will be the boss.   

School leavers prefer the first option.  So does most people that have "lost" their jobs and are used to working for a boss.  

The idea of being THE BOSS scares the hell out of most people. 

WHY ?

Here are some the reasons why they would rather work for someone - that is if there IS work:

1. The risk of the business ticking over is someone else's.

2. AT the end of the month the pay cheque is there - in some cases it is not affected by how hard you      worked.....

3. You start and knock off at specific times.

4. You sometimes don't have to work after hours or weekends.

5. You expect a raise in salary once a year.

6.  Even in a senior position you are not THE BOSS - which means you do not have to make the final

     decision in delicate matters.

I can go on for some time , but you are getting my drift ?

So why would you take a chance of being your own BOSS ?

Well, for starters we have one of the highest unemployment rates in the world.  You can be part of the statistics or you can decide to do your own thing. AND IT IS EASIER THAN YOU THINK. 

Right, that is freakin' awesome!.  You mean I can start my own business?

Wow..........but wait...How do I do that ?    I have no startup capital, I have no Entrepreneurial skills, let alone marketing or sales experience.........

I am going to give you just a few pointers and you will probably ask me for the rest.....

1.  You have certain skills.......You can sell...you must have sold yourself to your dear wife before

     you got married.    You have sold yourself out of all sorts of trouble at school or at home when you

      were young.  

2.  You can start a business by using your unique skills.    You are a plumber.....go do plumbing   

     You have a driving license, take people places for a fee.   You are an avid walker.  Become a 

     people walker, a dog walker, an older person's walker.   You can help yourself with a computer? 

     There are countless older people in retirement villages that would gladly pay you to teach them 

     Windows 10 or Basic "Office"  I have a 100 or more ideas..........

We are presenting a 3 hour  introductory course during the month of April in Krugersdorp on all these issues and quite a few more.   Interesting and easy to start businesses.  Some with a small bit of money, some without money at all.  How do you introduce people to your unique skills? How to price your work.  The basic legal frameworks ( You do not have to start a company , just a business) 

Full details via this blog by the 30th of March ...Send me an email to johnbrandow@mweb.co.za to be kept up to date --or register on the side of this blog to get auto updates via email.   VENUE AND COST WILL BE AVAILABLE LATER THIS MONTH 

THIS INTRODUCTORY COURSE WILL CHANGE YOUR LIFE. IT WILL EMPOWER YOU TO START YOUR SMALL BUSINESS IMMEDIATELY