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 70 000 60 000 50 000 Consumers 40 000 30 000 20 000 10 000 0 2008 2009 2010 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?