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 

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 Information	Description	Maximum Period
1.       Details and results of complaints lodged by consumers	Number and nature of complaints lodged and whether a complaint was rejected. No information may be displayed on complaints that were upheld.	6 months
2.       Enquiries	Number 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 Profile	Factual information pertaining to the payment profile of the consumer.	5 years
4.       Adverse classifications of enforcement action	Classification 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 behaviour	Subjective classifications of consumer behaviour.	1 year or until the debt is settled as prescribed in section 71A
6.       Debt Restructuring	As 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 judgments	Civil 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 1998	As per the court judgment.	Until the judgment is rescinded by a court
9.       Sequestration order	As per court order.	5 years or until rehabilitation order is granted
10.    Rehabilitation order	As per court order .	5 years
11.    Administration Order	As per court order .	5 years or until order is rescinded by court

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