Thursday, April 23, 2015

Serious lack in education and training of debt counsellors and people working in the consumer credit industry.

Serious lack in education and training of debt counsellors and people working in the consumer credit industry.

#Ignorance of so called "trained" debt counsellors on matters related to debt.
This blatant lie I found on a prominent debt counsellors website regarding liquidation as a solution for over-indebtedness

Quote:
Liquidation: is a legal process where assets are sold to try and lessen the debt and the Court will appoint somebody to manage your finances. This is costly and you will be blacklisted for 30 years or until the Court declares you as rehabilitated.
End

1) Liquidation is a process under Insolvency law relating to companies that are insolvent not individuals.
The actual term this person was looking for is Voluntary Surrender of Estate or Sequestration.
2) "The court will appoint somebody"
The court appoints a trustee to manage the insolvent estate. A simple search of Google would have informed this person on the correct term.
3) "This is costly" As opposed to? How is insolvency more costly than debt counselling when in an insolvency 80% of capital debt that is owed is written off. All interest charges are stopped and creditor legal charges and fees stopped.
Whereas with debt counselling 100% of debt needs to be repaid, in most cases over a longer term than the original agreement causing the debt to balloon out of proportion.
Interest keeps escalating the debt and creditors, debt counsellor and payment distribution agent fees are charged monthly.
4) "you will be blacklisted for 30 years" This statement is so devoid of truth its frightening.
Here are the facts:
• Civil debt judgments are valid for 30 years. Meaning, once obtained a creditor may legally collect the debt for 30 years.
• Judgments reflect on your credit profile for a period of 5 years in terms of the National Credit Act. An Act a debt counsellor should be well acquainted with.
• Sequestration orders are valid until a rehabilitation order is obtained, generally 4 years. After 10 years an insolvent person is considered automatically rehabilitated.

Are these the people authorized by government through the National Credit Act and regulated by the National Credit Regulator to advise you on matters related to over-indebtedness?

Every industry has their "runt of the litter" and this statement by no means are intended to reflect badly on hard working, educated and dedicated professionals working in the consumer credit industry but I have committed to pull no punches when it comes to shining a light in the eyes of these individuals and informing my followers.

EUGENE PRINSLOO
Partner
Meecham, Prinsloo & Associates
Personal Debt and Insolvency Practitioners

We are not debt counsellors and we do not offer debt counselling as a solution.

Call/SMS/Whats App 0813166983
Email eugene@meechamprinsloo.co.za
Fax 0867644392

Do you know anyone that struggles with debt? Refer them to us and we will take good care of them.
We are also able to offer you a referal commision, so talk to us and let us know who you know that needs help, just send us their email address and we will do the rest.

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