Financiers, Consumers, Debt Collectors, Lawyers and other Animals.(Episode 2)

Episode 2 

Financiers, Consumers, Debt Collectors, Lawyers and other Animals.

What happens when a debtor defaults on his/her commitments towards a Creditor.   What are the actions Creditors take ?

Without going into too much detail one or all of the under mentioned is going to happen:

The debtor might phone the creditor or visit them at their place of business to discuss his problem. The Creditor might phone the debtor. Invariable a letter of demand will be in the mail already.  Initially all will be very cordial and possibly an arrangement as to how this is going to be rectified will be made.  All fine and well?   Nooo not really…………..  Should the debtor default on this arrangement the tone of voice and accompanying facial expressions is going to change. Smiles disappear.  

You will be greeted by a very official good morning Mr.  You will not be John or Mary anymore. You will be Mr or Mrs……………

Just for clarification : It is in all probability not the doing of the debtor that landed him in the predicament. One of a few things could have happened.

Firstly The creditor might not have given execution to his required caution in terms of the NCA in that he might not ( More than a 50% probability) have evaluated the debtors ability to repay the borrowed money.  This could be classified as reckless lending which could cost him the loss of the full capital lend out. (This action will be discussed in more detail later)

Secondly The debtor might have encountered a few  problems:  He might have had a serious sudden expense (broken down vehicle, burglary,  whatever) This can normally be handled in a month or so if the creditor plays ball and extend the possible arrears.

He might have lost his job, might have been retrenched, his business might have a cash flow problem or any other real reason.  The reason normally is of no real concern to the creditor.  You see ….as far as they are concerned it is the problem of the Debtor.

Now the problem might escalate. The debtor might not be able to honour his commitments anymore and will start avoiding the threatening phone calls, Sms’s or emails.  The Creditor will now send out a notice in terms of s129 of the NCA which by law have to be received by the Debtor before any legal action can commence. Please not I say RECEIVED. ( in a recent case commonly known as Sebola it was established by the constitutional court that proof of receipt of this notice must be given and not just proof of dispatch thereof)

Normally at this stage the debt might be given over to debt collectors who will start the process again of phoning and threatening the consumer.   In some cases, depending on the bank’s view of possibility to collect, the debt is ceded to the debt collectors who now operate on the view that you owe them money.  Should the debtor make an arrangement with them they will collect a collection fee as well as interest.   They will in all probability send the debtor an AOD (acknowledgement of debt) where amongst others the debtor will wave his right defend any action and consent to judgment.

I will in future episodes handle all the different ways and tricks Creditors use to extend pressure and stress on debtors.   For now I am only going to list a few actions a DEBTOR  might take and cautions to observe when dealing with Creditors.    I know I might get a lot of flack from a lot of people (mostly creditors) but what the heck.  I am playing with the lions tail and I might just be gearing up for a class action of sorts – details later.

Here are the  7 cardinal rules when confronted by a Creditor:

(Just remember : should this land a court of law the creditor will use every piece of paper and every word in a conversation against you)

1.     Never admit to owning them anything – not verbally or in writing.

2.     Never make specific arrangements you do not have 100% control over.(and you most probably never have 100% control over anything!)

3.     If phoned by a debt collector no matter who they are insist on them identifying themselves.  The following are the bare minimum you request they email to you:

a.     A copy of their mandate from the Creditor to act on his behalf.

b.     A copy of the debt collector’s registration certificate with the debt collectors council.

c.      Proof that the caller are actually employed by the Debt collector agency.

d.     A copy of the original alleged instrument of debt.

e.     A full copy of how they have arrived at the alleged amount owed to them.

f.       Full details of the relationship between the debt collector and the debt – is he operating on behalf of a creditor or has he taken session of the debt.

4.       Never but Never sign anything – Like in Never.

5.       If you ever consider to ignore rule 3 see a Lawyer first !

6.       Especially never sign a new AOD  - never !

7.       Do not agree with anything that is said to you on the phone- remember

  you do not know who the person on the other side is.

Episode 3 to follow

Financiers, Consumers, Debt Collectors, Lawyers and other Animals.

Episode 1

This blog post has had a long incubation period. Probably not quite the right word, it is more a question of was I going to go the route or not but I do think the time has come to start pulling the lion’s tail.

As we all know DEBT and CREDIT probably means the same thing. They are both swear words and worse than the one’s you hear on TV.  The moment you are given credit by a Financier you are in DEBT. The process and documentation involved are really very intricate although most financiers do not really think so.  The arrangement between you and the creditor now are regulated by various acts. I am discussing this specifically in the South African context.

Over a long period of time the government of the day, in its unfathomed wisdom created acts that govern the relationship between the parties and I am quoting a few of these:

1.     The present National credit act

2.     The Consumer affairs act

3.     The Supreme court act 1959

4.     The Magistrates court act 1979

5.     The attorneys act 1979

6.     The debt collectors act 1998

There are a few more but these are the main acts I might refer to in this post.  

The relationship between a consumer and a creditor are born out of the consumers’ need for money and the creditors’ ability and willingness to lend this the consumer.  This is not the extension of a service to the consumer, it is the need (or greed) of the creditor to make money out of the transaction. 

As an interlude the above definition nullifies all banks’ claims that “we are there for you” or “what can we do for you” and all that bull.

The present National credit act (NCA) governs to a great extend the initial relationship between Creditor, Debtor, contract requirements, defaults et all.

For the purpose of this post I am specifically referring to the possible (and in most instances inevitable) decline of the relationship if (when) the lender defaults.   What is import to notice here is that the financier (Bank – whoever) evaluated the debtor’s financial position as per instruction by the NCA  and upon finding it to their liking extended the credit to the debtor with the aim of making money out of the transaction.   The relationship always had a 50/50 chance of success at best.

Either the debtor would be an angel and keep his job, get increases at regular intervals and pay his required payments as arranged.  Or he could lose his job, his business could fail, he could be retrenched, he could get ill to the extent that he no longer can earn an income.  There are a few hundred more reasons this could happen.  The point I am making is that this invariably happens to good people too!

Unlike what banks say in some of their threatening letters I still have to encounter a debtor who “Choose not to pay us” or “choose not to honour your agreement”.

Now once(if/when) this relationship do go south the client's status immediately change from “client” to  “ Problem” with the accompanying change in tone of voice when he is spoken too. Also the accompanying change in facial expression, tone of letters etc. 

How does a debtor handle this? I will not go into the reasons for the decline but only as to what happens and how does a debtor defend himself against the onslaught of verbal abuse he or she is going to have to endure.

In episode 2   I will discuss what exactly happens to the creditor and what is done from the creditor’s side.

In Episode 3    I will discuss the actions a consumer can take to defend himself against the onslaught. 

Stressed out? Read this, you just might sleep better tonight

I started writing a blogpost on stress. It is much longer than this and I might finish it one of these days.  Now you must understand that a lot of Stress experts might differ from me.  But that is not my problem, it is theirs!
This is precisely the point I want to make:   Who is in control of your life ? You or the rest of the world ?
Most people have opinions and beliefs that was and is given to them on a daily basis and which they embrace.  They will not differ with the dominee, pastor, priest, doctor, lawyer, creditors, et all for the simple reason that it is not done. They are the authority on their subject and they know better.  That is why I am posting this on this blogsite. That is because that is Bulls..t.  That is why you are getting stressed out.

I recently had a call from a lawyer firm's call center of behalf of a creditor   ( SABC Tv licenses) claiming I owe them money.  I said to the agent that I have not had a tv for the last 7 years and that I have informed the SABC about this fact 7 years ago. " Can you prove it sir? "  "No, I cannot and I am now finished talking to you"  "You have to talk to me!"    I simply put the phone down.

Why am I so sure of myself ?  Because I know the facts.  There are laws governing this type of interaction in South Africa and the one's most applicable here are:  The Anti Harassment act, The consumer affairs act and  the act on prescription of debt. ( I know the inner workings of these acts as if I have written them)

In this little interlude I am making the point that the 2 major stress agents in life is people and money  (or the lack thereof, or the ownership someone claims to your money)   Are you with me ? The main problem however is that people do not have the capacity to deal with these interludes for the simple reason they do not not seek professional help.  The quoted interlude happens daily to thousands of people and they will just endure the harassment and get stressed up more and more with every additional interlude !

There is an old Chinese proverb ( I love to call it Chinese proverbs because anything that I do not know the source of I attribute to them) that says :  "If you don't know, nod wisely, leave calmly and then.......run like hell to get an expert !"

Just for today:  Refuse to be a victim,  instead choose to be a victor.   Stand your ground like a man/woman who claim the right to be their own number one ! Take deep breaths before deciding to react to the other drivers finger language.  Ditto when you get shoddy service and be very polite yet absolutely affirmative in your response to claim good service.  Once you get going on this list it just seems to be never ending and you start to feel in control more and more every day.


(Read my follow up on how to deal with pestering call center agents and how to project all the stresses of the situation onto them)(shortly) 

Interesting facts about Cerials

Whilst hunting for tips on getting your cholesterol in check I found a lot of writings on the subject and will be posting some of them here
This article by Readers digest could be a good indication of whether your breakfast diet(or that of your children ) is in good health :

With recognition to Readers digest website :


www.rd.com Homepage>Health>Healthy Eating>

Doing research on getting one’s cholesterol in line I found some interesting articles and this one especially caught my eye. Interesting facts about Cereals



 Sneaky Ways “Healthy” Cereal Makes You Fat

Outsmart these common cereal slip-ups to pick the healthiest breakfast cereal and pump up the nutrition in your bowl.



1. Is cereal really dessert in disguise?

Scan a typical grocery store aisle. With about 130 varieties of cold cereal, each box yelling its seductive “low sugar!” “high fiber!” “great source of whole grains!” health claims, it’s easy to feel, well, bowled over. “Some cereals are as healthy as salad, others are like scarfing down a chocolate eclair," Dawn Jackson Blatner, RD, author of The Flexitarian Diet, recently told Health magazine. "But while there are a lot of sugary cereals, happily, it's easier than ever to find a really nutritious one." Here’s how to find the healthiest cereal for you.



2. When your healthy cereal is a sugar bomb

Grab your favorite cereal box and look at the ingredient list: You may be shocked to see that some form of sugar appears—perhaps multiple times—in the first few ingredients. “Even if a cereal is made from whole grains or loaded with other healthful ingredients, a high sugar content disqualifies it from my list of top picks,” Today contributor and nutrition expert Joy Bauer, RD, says. Too much sugar adds unnecessary calories, and it also spikes your blood sugar and primes you for a mid-morning energy dip. Enter snack cravings!



Healthy cereal makeover: Expert recommendations vary, but most say look for fewer than 5 to 8 grams of sugar per serving. (Don’t judge a box by its cover: Quaker Honey Graham Oh!s cereal, for instance, has 12 grams, while Lucky Charms cereal has 10 grams.) For great options, check out FitSugar’s list of low-sugar cereals, where most have 5 grams or fewer. If you still can't give up on your favorite, mix it with a serving of low-sugar cereal.



3. When your healthy cereal skimps on whole grains

Whole grains are linked to weight loss and a decreased risk of diabetes and heart disease, and a bowl without them should be a deal-breaker. But it can be confusing, thanks to misleading front-of-box claims like “More whole grain than any other ingredient!” and “with whole grain first ingredient.” The Nutrition Action Healthletter, a newsletter from the watchdog group The Center for Science in the Public Interest (CSPI), warns that in roughly half the cereals that make those claims, the second ingredient is refined.



Healthy cereal makeover: The label you’re looking for is “Made from 100% whole grain.” Check the ingredient list—the first ingredient should be preceded by the word “whole.” One exception is bran, which can’t call itself 100% whole grain, but is still a great source of fiber. Ideally, the first two ingredients should be whole grain, bran, fruit, or soy, according to the CSPI’s “Best Bites” rating system. Some that make the cut: Post Bran Flakes, Kashi GOLEAN, and General Mills Fiber One 80 Calories.



4. When your healthy cereal contains fake fiber

Fiber deserves a place in the Nutrition Hall of Fame for its ability to promote fullness and lower the risk of certain chronic diseases, but cereals that boast of sky-high levels are probably using added isolated fibers such as chicory root fiber, soy fiber, or psyllium. The Nutrition Action Healthletter says that there “isn’t good evidence that these lower the risk of heart disease, constipation, and diabetes the same way intact fiber, the kind in the outer layer of whole grains, does.” And research suggests that inulin (chicory root) doesn’t give you the same fullness as innate fiber, according to Health magazine.



Healthy cereal makeover: Choose cereals with at least 3 to 5 grams of fiber, but be skeptical of claims like “40 percent of your daily fiber,” warns the Nutrition Action Healthletter, which is a sign the fiber isn’t the natural kind. Of course, the easiest way to pump up the fiber in any cereal: Top it with fruit. A half-cup of raspberries has 4 grams, about 17 percent of your daily need.





5. When your healthy cereal is pumped with sodium

You’ve probably heard that our national love affair with salt is more a result of processed foods in our diets than the stuff in the shaker itself. Sneaky sodium packed into foods that don’t taste salty (like cereal) tricks our taste buds into craving salt, which can lead us to other waistline-padding junk food.



Healthy cereal makeover: To make the cut for Self’s Healthy Food Award guidelines, cereals have no more than 250 milligrams of sodium per cup. (Kelllogg’s Raisin Bran, for example, has 210 mg.) However, we often eat more than the serving size—so be mindful before you reach for seconds.



6. When your healthy cereal is missing protein

If your cereal bowl is naked—pretty much just the flakes and milk—it may be too low on protein to keep you sufficiently satiated, which can impact how well you eat all day long. In a new University of Missouri study, people who ate a high-protein breakfast (eggs and lean beef) felt more full, had fewer cravings, and were less likely to snack on high-fat, and high-sugar foods at night, compared with a group who ate a calorically equivalent bowl of cereal or no breakfast.



Healthy cereal makeover: Add a tablespoon of nuts or flaxseed to your favorite cereal for an extra protein boost, or top Greek yogurt (an excellent source of protein) with a small handful of your favorite cereal flakes for crunch.



7. When your healthy cereal forgets to make friends with milk

The milk you add to your cereal helps make it a more nutritious meal by contributing protein, calcium, and other key nutrients. Harvard research shows that people who eat dairy foods frequently are 21 percent less likely to develop insulin resistance, and 9 percent less likely to develop type 2 diabetes. What’s more, fortified vitamins and minerals are sprayed on cereal and dissolve in milk, according to Health. If you don’t drink all of it, you miss them.



Healthy cereal makeover: If you don’t like milk, eat your cereal dry to get all of the added nutrients, and get a dairy boost from other sources, like Greek yogurt or low-fat cottage cheese, the magazine recommends.





8. When your healthy cereal serving is too big

In a recent test of portion control savvy, Family Circle magazine volunteers poured cereal bowls that were twice as big as those recommended (1 1/2 cups and 240 calories compared to a 3/4-cup, 120-calorie serving). Do that with a calorie bomb like granola, and it could take a real toll on your waistline.



Healthy cereal makeover: Don’t assume you know what a serving size looks like! Measure it out and see how it fits into your bowl so you know how to eyeball a healthy portion. Also, consider eating with a teaspoon instead of a tablespoon, recommends Women’s Health magazine. This can make you eat more slowly and cut your overall calorie intake. Another neat tip: Eat the cereal out of a coffee cup instead of a big bowl to trick your brain into thinking you’re eating more.





9. When your healthy cereal stays out on the counter

Believe it or not, keeping the box in plain sight may make you more likely to top off your bowl or take a couple of handfuls here and there all day long. Grazing like this can add up to a serving or more, says Women’s Health.



Healthy cereal makeover: Put the cereal away after you pour it. If you like to snack on your favorite flakes during the day, portion out the serving size you want in little snack-sized baggies. Consider mixing basic whole grain flakes with nuts, seeds, and mini chocolate chips for a satisfying trail mix.