Circular 07 of 2019: Updates to the Debt Counselling Rule System

Circular 07 of 2019 The purpose of this circular is to provide the industry with an update regarding the implemented changes and upcoming change to be implemented on the Debt Counselling Rule System (DCRS) subsequent to the work carried out by the Credit Industry Forum (CIF) through the DCRS sub￾committee. The DCRS sub-committee was established to comprehensively investigate the reasons for low usage of DCRS which is a system designed to give effect to the concession rules embodied in the Task Team Agreement (TTA). Furthermore, to identify areas of improvements to make DCRS function more efficiently and user friendly. The industry collectively deliberated, identified and agreed on seven (7) changes that would improve the current functionalities of DCRS. In April 2019, the following changes were implemented (refer to circular 01 of 2019): • The creation of a “Z” file for use by Debt counsellors - This file allows a debt counsellor to input the client’s information in order to establish whether the matter will solve without having to create an actual proposal on the system. Furthermore, if the case does not solve, the system will advise how much extra affordability is required to reach a solve. This will mean that clients will not be denied the concession offered by DCRS as a result of relatively negligible amounts and Debt Counsellors will have certainty with regards to what is required. • VAF Balloon / residual balance change – This change was implemented to address the “solve” challenge experienced where the Vehicle and Asset Finance (VAF) had a balloon/residual balance. A longer term-extension has now been implemented on VAF accounts where there is a balloon/residual balance. Upcoming change to be implemented by November 2019 – exact date to be announced later • Calculation of interest from date of Certificate of Balance (COB) – This change is in the final stages of testing and provides the functionality that will allow DCRS to calculate interest from the date of COB until proposal start date. The purpose of this functionality is to minimize the end-balance differences and is an attempt to bring a closer match between the final and the provisional proposals unless there is a change to the inputs.

Updates from the Credit Industry Forum / DCRS 1 Number 07 | October 2019 Disclaimer: While the NCR has taken reasonable care to ensure the factual accuracy of this circular, it cannot guarantee such accuracy especially with regards to future events. Accordingly, NCR does not accept any liability for damages incurred by any party as a result of decisions or actions taken on the basis of information supplied in this Circular.

2 Number 07 | October 2019 Disclaimer: While the NCR has taken reasonable care to ensure the factual accuracy of this circular, it cannot guarantee such accuracy especially with regards to future events. Accordingly, NCR does not accept any liability for damages incurred by any party as a result of decisions or actions taken on the basis of information supplied in this Circular. • Both the COB date and the proposal start date will remain static on the system provided that the dates in the inputs are unchanged. This will allow any subsequent proposals to remain the same, irrespective of the date on which the proposal is generated. Debt Counsellors are encouraged to ensure that their debt restructuring system providers have these changes in place on DCRS to ensure that consumers benefit in full from the concession rules embodied in the TTA. Any related queries may be directed to the following contact details: • DCRS call centre on 0861 502 027 or via the helpdesk email address dcrshelpdesk@busdoc. co.za. • Please note that the DCRS Call centre / Help desk is available 08:00 to 18:00 Monday to Friday. FURTHER INFORMATION Please contact Timmy Van Der Grijp on 011 554 2802, tvandergrijp@ncr.org.za should you have any queries.