
DCASA ANNUAL CONFERENCE – AUGUST 2023
May 16, 2023
National Consumer Tribunal – Updates
June 6, 2023Update on the meeting held with Capitec Bank ( September 2023 Feedback)
Our President, Reinhard Pettenburger, arranged a meeting with Ian Orpen, the Head of Credit Operations, and Zahier Nagia, the Head of Credit Advocacy, to discuss the challenges we have faced, which were:
- The current Adverts.
- Call centers claim that they can offer a loan on the basis that the client has a Form 17.W
- Insurance replacements.
- Call centers call clients, advising them to cancel their Debt Review applications.
- Incorrect terminations.
- Continued debit order deductions
- Operational issues within the call Debt Review Department.
Current ads are being run by Capitec.
Firstly, let me assure all DCASA members that Capitec is in full support of the Debt Review process and willing to work together with the associations; however, they also want to protect the interests of their clients.
We are all aware of the rogue entities out there promising to remove clients from the Debt Review, lower their installments, etc., resulting in clients being transferred to these so-called “miracle workers”. As a result, clients have been charged further fees, which has had a profound effect on the performance of their debt review department towards the end of last year. This prompted Capitec to take a closer look at the debt review process, which led to the creation of these advertisements with the intention of educating consumers.
The aim behind the advertisement was an awareness campaign to ensure that the client was fully aware of the risks of Debt Review, as they felt many of their clients had been misled and failed to understand that Debt Review was a lengthy process. (This is from the feedback they have received from their call centers and an independent survey.)
As a result, we have come to the conclusion that we need to have closer ties and work together to ensure that their clients are made aware of the following:
- Ensure that the DC is registered.
- Preferably, work with Debt Counsellors that belong to an association.
- Review the potential DC on HelloPeter.com.
- Importance of sticking to their monthly commitments.
- Risks of transferring to a new DC when they are promised lower installments
In general, we have agreed to work together and keep communication lines open to address new and ongoing concerns on both sides. (This also includes reporting suspicious DCASA members directly to our NEC.)
Get a form 17.W, and we will be able to process your loan.
This has already been addressed within the organization and should not happen again. However, if this happens again, please send details directly to Vanessa (Dcasa@dcasa.co.za). I will then address the matter personally with senior management at Capitec.
Insurance replacements.
Again, Capitec has confirmed that they have no issues with credit life insurance but have concerns when we add additional insurance coverage. (Funeral cover, income protection, etc.), as this will reduce the installments offered to credit providers. Thereby keeping the client under Debt Review for longer than they should be.
There are cases where DCs replace cover with inferior cover in terms of cost and cover period (Capitec Insurance:
- does not charge all clients the maximum of R4.50 per R1000.
- is calculated using the “reducing balance method.”
- offers 24 months of cover
If additional insurance is offered (funeral cover, income protection, etc.), then it must be completely separate from the debt review process so that the client understands that this is a separate agreement. It cannot happen with the same PDA and debicheck transaction.
We are aware that this is a gray area, but we need to take into account that it may look suspicious to the credit provider if the client never had these insurance products prior to entering the Debt Review process, while we could contend that we are ensuring that all parties are protected in the event that something happens. (This will remain open for further discussion.)
Call centers call clients, advising them to cancel their Debt Review applications.
I can confirm that their call center and debt review departments are two separate entities and that their call centers have no access to clients that have signed up for Debt Review as they are removed from their main systems to their Debt Review departments within 24 hours.
On further investigation, I can confirm that I have listened to calls made by our clients to their call centers stating that they never informed me that this was a debt review application as they were sold a consolidation loan. (Clients receive an SMS stating that they have been placed under Debt Review and to contact them if this is not the case)
Furthermore:
They were unaware that they would no longer have access to credit.
Unaware of the fees associated with Debt Review.
This would explain why Capitec has taken a stance in regard to their adverts as they want to ensure that their clients are treated fairly and need to know what they have committed themselves to.
Points 5, 6 & 7
I will be meeting with both Carolina and Cindy to discuss the operational issues that we have experienced to get a full understanding from their side to establish the challenges and concerns they have experienced and agree to a way forward, as I firmly believe that all these matters will be resolved.
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Attention Members ( 31/05/2023)- this post will only appear here for a week, where after it will appear under the library section for members only.
Capitec has identified a gap in their termination process but it has subsequently been resolved and additional quality control and measures to check has been put in place.
If there is perhaps any pre-termination notices sent out to clients (who are not in default) please let DCASA know and we can bring it to their attention.
We have attached a copy of their LATEST communication channels and Escalation process for perusal. Communique – Escalation Channels 2023 sept
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Capitec Escalation List & Communication September 2022
For the most up to date Capitec Escalation list and communication, click on this document 26 September 2022