REK YOUR CHEQUE: We deserve good service

Debt Review Awards comes at a crucial time.

Top performing debt counselling practices were recently recognised for excellence during what can only be described as an extremely challenging year for South African consumers.

The Debt Review Awards is an industry awards program which is specific to the debt counselling and debt review sector.

All National Credit Regulator registered debt review industry parties are invited to participate and are in line to be considered for awards.

The awards are now in their seventh year and the industry gets the chance to share their feedback on various payment distribution agencies (PDA’s), more than 1700 active registered debt counsellors and over 8000 registered credit providers, including all the major banks.

Research shows that:

• Nearly half of the 25 million credit active consumers in SA have fallen behind with their debt.

• Debt payment holidays offered by banks at the beginning of lockdown and taken up by approximately 1.6 million consumers, have added around R20.7 billion to their debt.

• Household income has been lost and interrupted – and consumers are turning to unsecured lending for survival.

A report by credit bureau Transunion indicated that in July 2020, Covid-19 had financially impacted 77% of SA consumers.

Nine out of 10 consumers surveyed said they were concerned about their ability to pay their unsecured debt.

The NCR, which is responsible for the regulation of the South African credit industry, did a study in 2019, and found that unsecured debt had quadrupled to more than R220 billion in the last 10 years.

Now more than ever, responsible, competent, committed debt counsellors are needed to help overwhelmed, over-indebted consumers.

Therefore, these awards, held virtually this year, come at a crucial time.

By far, the most hotly contested and most prestigious category of the awards is the award for best national debt counselling company.

This year that award went to National Debt Advisors (NDA).

For NDA CEO Sebastien Alexanderson, this award had special significance given the state of national lockdown.

“As the CEO, I have to make the point that NDA is only the best because we employ the best,” he said.

“I credit all of this to my entire team. We did this together.

“In one of the most challenging times in the history of the world, we pulled together and worked harder and our efforts have borne results that we are immensely proud of.

“We have the right people with the right attitude, geared to get South Africans out of debt and on the road to being financially free.”

Alexanderson warns that the current level of SA consumer debt is unsustainable.

“NDA is committed to increasing financial and consumer literacy and education, to creating platforms for financial and personal growth and to become the employer of choice that will help as many South Africans as possible become debt-free and reach financial freedom, so that they may add value to the economy and growth of this beautiful country,” he says.

DirectAxis was named as the best short-term credit provider.

On receiving the award, Robert Gwerengwe, CEO of Consumer Lending Solutions, said given the impact that Covid-19 has had on the South African economy and the pressures that consumers are under, it’s more important than ever that the entire financial services industry delivers to the best possible standards.

“This means lending responsibly to consumers who can afford to repay loans while ensuring that people who find themselves in financial difficulty, often through no fault of their own, get the help they need from a world-class debt review system,” he said.

“It also means realising that as an industry we need to get much better at delivering financial education more effectively.”

Here are a list of the winners of the 2020 Debt Review Awards:

Payment Distribution as reviewed by credit providers

Winner: Hyphen PDA

Payment Distribution as reviewed by debt counsellors

Winner: Hyphen PDA

Short Term Credit Provider

Winner: Direct Axis

Retail Credit Provider

Winner: Consumer Friend

Large Non-Bank Credit Provider

Winner: Old Mutual Finance

Vehicle Finance Credit Provider

Winner: Standard Bank (SBSA)

Banks: Unsecured Credit

Winner: Standard Bank (SBSA)

Bank: Secured Credit

Winner: Standard Bank (SBSA)

NEW: Covid-19 Excellence

This year saw the introduction of this new Award during the pandemic.

Winner: FNB

Most Improved Credit Provider Debt Review Department

Winner: African Bank

National Debt Counselling Practice

Winner: National Debt Advisors (NDA)

Sadly, there are many people who have not received great service from financial institutions at a time when they need it most.

People are being sent from pillar to post, from one department to the next, being put on hold for even hours on end.

People are spending exorbitant amounts of money (which they don’t have) on airtime trying to sort out their finances.

Please remember, we are entitled to good service, because we are paying for it. These institutions are not doing us favours by doing their jobs.

Use the platforms at your disposal, to rate their service.

Voice your anger and frustration if no one is getting back to you. Call out those who take your money, but deliver no service to you.

AFFECTED: 77% of consumers have been financially impacted during the Covid-19 pandemic

*Moeshfieka Botha is Head of Research and Consumer Education at National Debt Advisors.

For more information on debt and personal finance go to www.nationaldebtadvisors.co.za