objective, simplified financial solutions we bring positive change to the financial services...
TRANSCRIPT
Objective,simplifiedfinancialsolutions
We bring positive changeto the financial servicesindustry by doing greatthings for consumers
Broker vs Advisor
BE PROTECTEDLoan sharks and corrupt collectors are stealing from your employees by adding inflated fees and interest to loans and garnishee deductions. We protect your employees by auditing these loans and orders, ensuring we hold corrupt providers accountable. We’ve put millions back in the pockets of employees and we’d love to do the same for your employees:
• R6 million refunded to Sappi employees• R3 million saved for Lonmin employees• R4 million saved for Department of Defence employees
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Stop the abuse by lenders and collectors
EAO Process & Irregularities
Stopping EAO
Monthly Fees
Payment Plan
Judgment and EAO
Section57 & 58
S129Letter of Demand
Loan Agreement
1. Loan amount 2. Fees and interest rate3. Reckless lending (affordability checks)4. NCA Compliance5. Registered lender6. Loan splitting
Consumers RightsNotice
1. Validity (forged)2. Date signed3. Amount
1. Validity (court file)2. Judgment debt vs loan3. Installment4. Interest rate5. Fees
1. Collection costs2. In duplum (S103)3. Interest rate4. S65J (10) Commission5. Legal fees
Rule 81 of the Law SocietyMagistrate Court tariff
1.Remove the administrative burden• Capture & administer all orders – EAO’s, administration orders and
maintenance orders• All administrative functions are performed by Summit. The employer
only receives the order and scan it onto our system
2.Ensure that only valid, accurate and affordable orders are deducted
• Audit team with proven track record• Audit orders, contracts and statements behind the orders• Results in savings and refunds for employees
3.Ensure improved levels of communication• Multi lingual call centre & email access to vendors and employees• Regular reporting to management
EAO Process Objectives
Systems: Payroll Deductions
• Typical rules:– Affordability– Interest calculation– Bank account verification– Balance management
Insurance
Medical
Finance
Unions
Legal
Intelligent Control
PERSAL
PERSOL
Source
EAO Process Flow
EAO RECEIPTING
CHALLENGE
SCHEDULES
PAYMENT via ACB
AMENDED EAO
COURTCONSENT
E A O
SCRUTINISE
RECON
PAYROLL
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2
3
4
5
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INTERFACE
OUTPUT
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8
9
Name of credit providerIs there a court stampIs there a court numberAmount of the orderAmount of the instalmentInterest rateFees
Repayment Plan
Web Upload of Documents
Steyn Attorneys
Irregularity
Legal fees 10 times capital
Action
Magistrate Court Application
Result
Stop payment notice received
Fin Africa EAO
Irregularity
Inflated balance on certificate
Action
Challenge letter
Fin Africa Statement
Result
“Correction”
Good Times Finance EAO
Irregularity
Costs equal to judgment amount
Action
Payment stopped
Good Times Finance Letter
Result
Costs written off
Fraud
Irregularity
Apparent fraud
Result
Pending
Action
Payment stopped
1.Bring banking solutions to the payroll • Build a community of service providers that is under the employers
control• Ensure contracted automated rules and real time affordability checks
to protect employees• Service providers must pass on savings from payroll collections to
the employee
2.Show bite early on• Go to court • Question every deduction and repayment plan• Get experts
3.Shop around• Retirement funds, life insurance, funeral cover, cellular contracts,
credit and similar group scheme solutions will reduce prices for payroll deductions
Conclusion
5% Commission
Theory Practice
Employee Creditor
Employer/Summit
R100R100 Invoice
R5 plus VAT
Employee Account
Opening balance R1000
Credit (R100)
Closing balance R900
Employee Creditor
Employer/Summit
R100 R95
Employee Account
Opening balance R1000
Credit (R95)
Journal credit (R5)
Closing balance 900