A 20 year journey Practicing attorney in the 90s In 2000-2002 - - PowerPoint PPT Presentation

Debt Relief in South Africa – A 20 year journey

• Practicing attorney in the 90’s
• In 2000-2002 Dotcom Bubble :

– NASDAQ down 78% – 8 trillion USD of wealth lost – Surge in foreclosures and repossessions – No adequate debt relief measures

• Lobbied Parliament for changes

– In the interim ,engaged in Debt Rehabilitation

• National Credit Act: March 2006

– Debt Review measures. – Only country in the world to look at debt holistically.

Consumer Friend New Beginnings

Consumer Friend First Application

Great Financial Crisis

2008 – Matters poured into Debt Review

10 000 20 000 30 000 40 000 50 000 60 000 70 000 2008 2009 2010

Consumers

Years

Immediate Problems:

• Only 10% of applications resolved in

courts.

• Default rates were at 48%.
• Lower number resolved consensually.
• Huge bottlenecks.

Task Team:

• Set up in October 2010 by the NCR to

identify problems and reduce the backlog.

• Worked tirelessly for 6 months.
• Ubuntu spirit.
• Produced task team report and

recommendations.

Success:

• Improved compliance.
• More consensus.
• Backlogs reduced.

CREDIT INDUSTRY FORUM :

• Representative of the industry.
• Aim is to get consensual

agreement on process enhancements to Debt Review process.

• Numerous sub-committees

currently sitting.

Way Forward:

• Consensus is needed to

streamline the process

• Widespread use of DCRS is

particularly important.

• Integration of various software

platforms will revolutionise the industry.

Is the next financial crisis on its way?

Is the next financial crisis on its way?

Are we ready?