Page 2 of 2 FirstFirst 12
Results 11 to 15 of 15

Thread: Ask SKY

  1. #11
    Email problem
    Join Date
    Apr 2010
    Location
    Durban
    Posts
    16
    Thanks
    1
    Thanked 9 Times in 6 Posts

    Is it a Scam?

    One of my clients (well, actually all of my clients) had been experiencing debt problems. The banks were calling him regularly and took his entire salary from his bank account, further exacerbating his situation. His conversations with the banks were one sided and they were quite unsympathetic to his plight. He was advised by his bankers that debt counselling was a waste of time and would result in him never getting credit again. He was petrified. He became disorientated and detached. He read about crooked debt counsellors on the news and saw no way out.

    We met and spoke. When the credit provider threathened him with summons, he took the risk and made an application for debt counselling. I have negotiated a repayment plan for him - which he has been paying to a payment distribution agency for the last two months. He has had to make some lifestyle adjustments - which he considers a small price for the relief he has got. The banks all agreed to the new plan the first time round and we are to appear in court to seek a court order very soon. I prepared all the paperwork and showed it to him.

    This client is happy again and full of energy. He has sufficient cash to live a dignified life and is amazed by the process. He mentioned to me that when he heard about debt counselling he thought it was too good to be true and therefore must be a scam. The impression he got from the banks was that his name would be tarnished forever. He mentioned the stigma attached to debt counselling, and the constant news of crooked debt counsellors didn't do anything to mend the perception.

    If you watch Carte Blanche Consumer, you will be familiar with the phrase "If it sounds too good to be true, it probably is". Take the normal ad for debt counsellors "50% OFF your payments" or "Don't pay for 2 or 3 months". This sounds too good to be true and is. Debt counselling does not work like that. Because it is constructed as a societal remedy for over-indebtedness, the consumers who are the worst off receive the biggest benefits. If you are over-indebted and struggling with constant anxiety and apprehension, then debt counselling will be of assistance. Maybe you won't get 50% off your debt, but you'll definitely get a better planned and organised budget and a more affordable repayment plan without any harassment.

    What about your credit record? Well, once my clients debt is paid, I will issue him with a clearance certficate. The credit bureaux must then remove all record of his review and every negative record on every agreement that was included in the review. The bank employees create a poor perception of the Act because it is in their interest to do so. Consumers however, are very sensitive to these perceptions and because we see banks not as businesses, but as institutions in our society we are easily swayed by these perceptions. Some people never make the application for debt review, and are destroyed by the very banks who shape their perceptions.

    I had a counselling session with this client and his family and it led to some very constructive choices. They are all doing well and the session helped to evaluate values and behaviours that created problems. Now they are adjusting to a different value system regarding consumption and finances which ensures their happiness.

    I like to think that I own a debt counselling pratice, not a debt counselling business. I would structure it very differently if it were a business. When done this way debt counselling is a positively life changing remedy for consumers. Debt Counselling is not a scam.

    This said, make sure you don't get scammed by fraudsters out there. Read the above posts and check out my website before you make any decisions. When you are vulnerable people will prey on you. So take a step back, do some research and do what you have to do with someone you trust.

  2. Thank given for this post:

    Dave A (19-Apr-10), sterne.law@gmail.com (19-Apr-10)

  3. #12
    Email problem
    Join Date
    Apr 2010
    Location
    Durban
    Posts
    16
    Thanks
    1
    Thanked 9 Times in 6 Posts

    Reckless Lending - ABSA Guilty

    The news in the past few days reported on the first time that a credit provider had been found guilty of reckless lending in terms of the NCA. ABSA Bank was the guilty party and the entire loan of R350 000 was set aside by the Magistrates Court.

    Reckless lending has been one of the most important provisions of the NCA, yet it has taken almost two and a half years for a credit provider to be found guilty of this practise. The reason?

    Well the Act makes incomplete disclosure on the part of the consumer a complete defence for the credit provider. Reckless lending is rife in our society, however many consumers lose their protection from the law because they are deliberately dishonest about their finances in order to qualify for a loan.

    If you have to lie to get a loan, you probably cannot afford anyway.

  4. Thank given for this post:

    Dave A (02-May-10), sterne.law@gmail.com (04-May-10)

  5. #13
    Suspended
    Join Date
    Oct 2007
    Posts
    2,346
    Thanks
    0
    Thanked 254 Times in 209 Posts

    loan issue

    i got into some financial difficulties in july 2007...so i approuched african bank and asked for a cash loan...R10 000...they requested a payslip and ID...i was earning R7000 per month before deductions...clearing R5900 per month...they granted the loan.

    then 2 months later i needed more money...so they granted me another loan this time for R13000.00...they requested ID and payslip again still earning only R7000 per month less deductions.

    then 4 moths later i went back to the bank and requested another loan...this time for R10 000...they requested a payslip and ID again and this time offered a credit card with a R2000 limit i declined...because i had enough difficulties as it was.

    then again 3 moths later again i was drowning in debt so i went back an requested another R9000...they requested a payslip again and ID...the loan was granted...my payslip was still the same as the original R7000

    after sorting out all the problems i started paying bank the loans evey month without missing a month.

    then a year and half later i got retrench...again...so my problem started again...i couldnt pay the loans back....for 6 months...then after 6 months i got a job...and started paying the loans again...for another 6 months then got retrenched again...so i couldnt pay back the loan....for about 10 months...now a tracing agent contacted me to sign documents which i have done...the outstanding payment is now R65 000 and i am unemployed what do i do?

    this is a real life situation but not mine personally

  6. #14
    Email problem
    Join Date
    Apr 2010
    Location
    Durban
    Posts
    16
    Thanks
    1
    Thanked 9 Times in 6 Posts
    Hi

    Firstly nobody can compel you to sign any document (uness they have a court order) and in matters like this you should never do so, especially if it is from a tracing agent.

    I often hear stories about African Bank and their irresponsible behaviour. Yours is a case in point.

    According to the Act a credit provider is obliged to conduct an assessment of your finances and only grant the credit if the assessment shows that you can afford the repayment. This is not optional, it is mandatory and the Bank must retain proof of such an assessment. If the bank does not conduct an assessment, or conducts an assessment which determines that granting the credit will render you over-indebted, and grants you the credit regardless then this is regarded as reckless lending according to the Act.

    The Act came into effect on the 01 June 2007. It seems that your agreements full within the ambit of the Act.

    Based on what you have said, I think you have a strong case to claim reckless lending. My advice would be to visit a good debt counsellor and get expert advice. Please do so quickly and speak to a DEBT COUNSELLOR, not a consultant or trainee.

    Good Luck.

  7. #15
    Suspended
    Join Date
    Oct 2007
    Posts
    2,346
    Thanks
    0
    Thanked 254 Times in 209 Posts
    i was with this person today and the phone doesnt stop ringing...they bother him all day with threats of attachment etc...his wife managed to get a job just over a month ago and was fired today...the reason...conflict of interest between the owners of the comapanies wife and his wife...apparently she used a stapler instead of a paper clip and spelt a word incorrectly... so now they are both dont have a job...i think she was on probation but will find out more details...

Page 2 of 2 FirstFirst 12

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •