On the warpath

On the warpath
On the warpath

Sunday, March 18, 2018

Periods that Credit Bureaux may keep your records



       This is undated but apparently correct today   18 march 2018


CREDIT BUREAU INFORMATION RETENTION PERIODS REDUCED
The new National Credit Amendment Act and Regulations makes it possible for negative and adverse information to be removed on settlement of the debt. The Regulations prescribe that:

71A (1) The credit provider must submit to all registered credit bureau within seven days after  settlement by a consumer of any obligation under any credit agreement, information regarding such settlement where an obligation under such credit agreement was the subject of-

  • An adverse classification of consumer behavior:
  • An adverse classification enforcement action against a consumer:
  • An adverse listing  recorded in the payment profile of the consumer: or a judgment debt

(2) The credit bureau must remove any adverse listing contemplated in subsection (1) within seven days after receipt of such information from the credit provider

The Regulations have also reduced some of the retention periods. It provides that consumer credit information as per the following table must be displayed and used for purposes of credit scoring assessment for a maximum period from the date of the event, as indicated







NEW PRESCRIBED TIME LIMITS FOR RETAINING INFORMATION AT THE      CREDIT BUREAU
Categories of Consumer Credit InformationDescriptionMaximum Period
1.       Details and results of complaints lodged by consumersNumber and nature of complaints lodged and whether a complaint was rejected. No information may be displayed on complaints that were upheld.6 months
2.       EnquiriesNumber of enquiries made on a consumers record, including the name of the entity/person who made the enquiry and a contact person if available.1 year
3.       Payment ProfileFactual information pertaining to the payment profile of the consumer.5 years
4.       Adverse classifications of enforcement actionClassification related to enforcement action taken by a credit provider .1 year or until the debt is settled as prescribed in section 71A
5.       Adverse classifications of consumer behaviourSubjective classifications of consumer behaviour.1 year or until the debt is settled as prescribed in section 71A
6.       Debt RestructuringAs per section 86 of the Act, an order given by the court or Tribunal.Within the period prescribed in section 71(1) of the Act or until a clearance certificate is issued.
7.       Civil court judgmentsCivil court judgments including default judgments.The earlier of 5 years or until the judgment is rescinded by the court or abandoned by the credit provider in terms of section 86 of the Magistrates Court Act 32 of 1944 or until the debt is settled as prescribed in section 71A of the Act
8.       Maintenance judgments in terms of the Maintenance Act 99 of 1998As per the court judgment.Until the judgment is rescinded by a court
9.       Sequestration orderAs per court order.5 years or until rehabilitation order is granted
10.    Rehabilitation orderAs per court order .5 years
11.    Administration OrderAs per court order .5 years or until order is rescinded by court

Wednesday, March 14, 2018

March 2018 Government schools and exemption of School fees


School fees: Government schools( Not applicable to Private schools of any sort)
This information document has been compiled by John Brandow after a diligent study of the relative act and circular 86 that governs the issue of school fees and the right to apply for exemption and the criteria surrounding such exemption. This has been compiled to assist parents in any dispute regarding exemption and can be handy to have available should a parent ever have to debate any issue around school fees
The act that governs Government Schools and all relevant issues is the South African Schools act 84 of 1996 that came into effect on the 1st of January 1997.
Circular 86/2007 Date:  04 December 2007   Management of School Fee Exemptions in Public Ordinary Schools governs the specific issue of the exemption of school fees.
These are the latest Regulations that came into effect on 1 January 2007 in order to assist schools and parents to achieve this co-operatively- That is contained in Circular 86/2007 which encompasses the present status quo.
Parents encountering problems to enforce their right to apply and get Exemption from school fees are advised to download circular 86 and present it to the School Principal in an interview one has to claim as your right to be heard.
I am going to discuss the relevant issues in detail here: Where I quote the act the comments in Red directly thereafter is my interpretation (Views that I will defend to the nth degree!)
As is required by the Act parents are required to pay school fees.
Parents, however can apply for and MUST be granted exemption according to a formula contained in Circular 86
Here is the exact chronological sequence on how this SHOULD BE HANDLED BY SCHOOLS
1.       The AMOUNT of school fees payable is determined at the annual general meeting of parents.
2.       The School Governing Body and principal must notify parents of the following:
(OBLIGATIONS OF THE SCHOOL GOVERNING BODY AND THE PRINCIPAL point( 5 circ 86)   (Please note that the regulation prescribes the obligations of the School governing body AND the Principal – NOT OR THE PRINCIPAL)

a.       The AMOUNT of school fees payable as determined by the annual general meeting of parents. (5.1 circ 86)
b.      The EXEMPTION PROCESS.  If the parent is in arrears by one or two months, the School Governing Body must assess the possibility as to whether the parent qualifies for an exemption by notifying the parents that they are in arrears and that the parent did not apply for exemption. 5.2  Circ 86

 (This notification must come from the Governing body or the Principal in person – not a clerk in the employ of the school – see the introduction of point 5 above)

c.       The FORM to be completed, to show the parent is informed about the school fees regulations.  The form must be submitted to the District Office.  (See the checklist form in Annexure A.)  5.3 circ 86
d.      The COPY OF THE REGULATIONS which the School Governing Body must display at the school. 5.4 circ 86
e.       The parent’s RIGHT TO PRIVACY for all the information in a parent’s exemption application. 5.5 circ 86
f.        The HELP AVAILABLE from the school, if the parent needs help with the exemption application.  (5.6 circ 86)
PLEASE NOTE:  The school is not allowed to charge for extra things like registration, or compulsory extra-curricular activities.  If an exemption is granted, the learner is entitled to the total school programme.  5.7 circ 86
If the School Governing Body requires more information such information must be directed to the income of the parent and not to the assets.  An application may not be disqualified merely because the additional information was not supplied. 5.8 circ 86
THIS IS A CRITICAL CLAUSE AND IS WHERE SCHOOLS NORMALLY MAKES THEIR OWN RULES NOT IN LINE WITH THE ACT OR THE REGULATIONS – You whole qualification is calculated from your gross income according to your payslip (both parents if applicable) 
Furthermore, it is unlawful to withhold a learner’s report card on the basis of non-payment of school fees.  Such actions render you liable to disciplinary action in terms of the various national and provincial policies.  Point 5.9 circ 86

3.      OBLIGATION OF PARENTS WHO APPLY FOR AN EXEMPTION (Point 6.  Circ 86)
 Parents who qualify should apply annually in writing to the School Governing Body for an exemption from school fees. Point 6.1 circ 86
The parent can request an application form from the school.  See the application form in Annexure B.  Point 6.1 Circ 86
4.      At the beginning of each school year the Principal MUST sign a completed annexure A together with the parent/s responsible for paying school fees (Point 5.3 of circular 86 applies)
Quote from point 3.1 of circular 86 As part of our Constitutional mandate, we have a duty to inform parents of their right to apply for exemption from the payment of school fees in public schools. 
This is a right afforded you as parent/s to apply for exemption – the school cannot refuse you the right to apply
There is a misconception amongst many parents that, if they are unable to pay school fees in full or at all, they cannot apply for the admission of their children to public schools.  It is necessary that we correct this notion in order to effectively promote the right to education. (3.3 of circular 86.


The following is discussed with direct reference as it appears in Circular 86 The numbers refer to the number in the Circular

6.3 If the school has not already given a parent a copy of the exemption policy, the parent can demand a copy.
 7. SCHOOL FEE EXEMPTION PROCEDURE

7.1 Parents are LEGALLY ENTITLED not to pay school fees if they do not earn enough money.
 7.2 Firstly, consider annual school fees, including any extra expenses like a school excursion or any extra sports clothes.  It is illegal for schools to charge any form of ‘registration fee’ or other compulsory contribution for a parent if such fee or contribution is not part of the school fees.
 7.3 Secondly, consider what parents will earn in that year.  This includes salaries, investments and any business profit.  If it is a two-parent household, calculate the combined gross annual income of both parents. (taking into account a recent SCA judgment regarding single parents – see point 7.6 further down)
 7.4 Thirdly, when calculating the relationship between income and the school fees, count the number of siblings, including siblings in other schools.
 7.5 The School Governing Body must apply the following formula:

7.6 To calculate the formula, fill in the following values:
 E  = school fees as a proportion of the income of a parent.
 F = annual school fees, for one child, that a school charges in terms of Section 39 of the Act.
 A = additional monetary contributions paid by a parent in relation to a learner’s attendance of, or participation in any programme of, a public school. 
C = combined annual gross income of parents.
Please take note of the following referred to in a recent judgement about single parents(SCA case number1209/2016 judgment delivered 13 Dec 2017)
Where a single parent does not have the co-operation of the other spouse/ex-spouse/missing spouse and he/she is not co-operating in supplying his/her income or details the single parent (definition not specific apart from”single parent” ) that single parent has the right to apply for exemption as if his/her gross income is the sole income of the family unit.  It is not the single parent’s responsibility to then follow up on the other parent apart from supplying the school with his/her known address, work details etc.  The school has the authority to go after the other parent with full on debt collecting in any manner they see legally fit.
100 = the number by which the answer arrived at in the brackets is multiplied so as to convert    into a percentage.   
 a) Total Exemption
If school fees are 10% or more of the total income of the parents, they will be entitled to a total exemption and will NOT have to pay school fees. 
Page 5 to 8 of the circular describes in detail how exemption is calculated and is not being quoted here

B) Automatic Exemption
 It is illegal to charge any school fees for a learner:
 • who is an orphan, in an orphanage; • who is an orphan in a child-headed household; • who has a foster parent; • who has been placed in a youth care centre or place of safety; • who has been placed in the care of a family member (“kinship caregiver”); or  • whose parent receives a social grant on behalf of the same learner e.g. a child support grant. 
 In a case where a parent qualifies for automatic exemption, he/she is required to supply a confirmation affidavit from a social worker or competent authority in support of the application.
Where parents wanting to apply for exemption are refused documents there is an example of such an application as part of circular 86 on page 12 & 13  You can copy and print this and complete and scan and email it directly to the Principal with proof of your annual income .  Emailing creates a paper trail and the school cannot claim non-receipt. 

Proof of annual income.
This is the only criteria that is required, and the following should suffice:

       Copies of both parent’s payslips not older than 3 months - the accumulated income for the year is normally shown on there.
      Alternatively a letter from employers should suffice. 
      Schools sometimes require copies of bank statements to confirm that there are no undeclared other income - This is contentious but if that is all that is standing between you and exemption why not supply it ?  

The following is NOT required and is not mentioned anywhere in the act or the circulars
1.       Details of assets owned.
2.       Details of expenses.
3.       Details of the other spouse if he or she is not co-operating in supplying details
( I would suggest an affidavit to this end regarding the circumstances with any details the co-operating spouse has of the other party to enable the school to take further action against  the non-co-operating partner)
4.       Letters from banks confirming that you do not have other bank accounts
5.     Credit checks are not required and irrelevant 

Page 10 of the circular 86 – annexure A
Make sure that this document is completed by you and signed by YOU and the Principal at the earliest convenience when the school starts.  This is your most critical document and without this being signed by both and copies being kept as per the circular 86 the school cannot institute legal actions