1. DCRS Credit Provider OVERVIEW 26th April 2011

2. Background & Overview of the DCRS
As part of the NCR debt review Task Team recommendations the credit industry was called on to agree a set of restructuring rules that would carry consent. Consent will be certain if there is no dispute about:
The eligibility of the consumer or agreement for debt review; and/ or
The integrity of the over-indebtedness and affordability assessment done by the debt counsellor.
In the interest of resolving as many as possible deserving cases through consent, the credit industry agreed a set of restructuring rules that incorporates sacrifices by credit providers beyond what can be imposed under the NCA.
This led to the development and deployment of a central web based engine (the DCRS) accessible to all debt counsellor system providers and credit providers, on which the agreed consent rule-set and all future NCR Debt Review Advisory Committee agreed restructuring rule-sets can be deployed.
The DCRS receives standard data from a debt counselling system, restructures the debts in the portfolio in accordance with the affordability assessment outcome and debt portfolio data submitted and sends the essential data for a standardised debt restructuring proposal and PDA payment plan back to the DC system for incorporation into a proposal to credit.
DCRS Credit Provider Training Summary

3. Background & Overview of the DCRS
On the DCRS a summary of the debt counsellor’s affordability assessment, the debt restructuring proposal (if the case solved under the rules) and the PDA payment plan will be retained in the agreed standardised formats.
On receipt of a Form 17.2 pack for a case processed on the DCRS (now incorporating the assessment summary, restructuring proposal and PDA payment plan in standardised format) the credit provider can then use an access code provided by the DCRS for each case to validate the pack received against the data on the DCRS.
In cases where the debt restructuring proposal and payment plan complies with the rules (as confirmed by the DCRS) and there is not a dispute about the eligibility for debt review or the integrity of the assessment, credit providers have agreed to issue a standardised acceptance letter and after final acceptance the new terms agreed to will be reflected on the credit provider systems from date of acceptance.
This obviates the need for the credit provider to try to manually assess and test (recalculate) the restructuring proposal if the proposal (including the assessment summary and payment plan) received corresponds with the version on the DCRS. If not, the credit provider would have no obligation to consent and the pack received will require extensive manual evaluation for an answer to be formulated.
DCRS Credit Provider Training Summary

4. Background & Overview of the DCRS
The DCRS in combination with and as an integral part of the new debt review dispensation being established following the Task Team recommendations constitutes a powerful tool to streamline the process, reduce the costs and turn-around times and build trust between credit providers and debt counsellors. In addition the implementation of this process should reduce congestion at the Magistrate Courts as a very significant proportion of cases can be settled through consent.
The enhanced debt review process recommended by the Task Team, agreed by the credit industry, debt counsellors and supported by the NCR is depicted on the next slide.
In this new process, where the DCRS rules are used by the debt counsellor, the credit providers will validate the:
Provisional proposal received in step 6 (which must reach them by latest business day 15 in the process) in step 7 to determine the provisional response they must have back with the DC by latest business day 25 in the process); and
Final proposal received in step 8 (which must reach them by latest business day 32 in the process) in step 9 to determine the final response to the restructuring proposal (which they must have back with the debt counsellor by latest business day 39 in the process).
DCRS Credit Provider Training Summary

5. Debt Review Process DCRS Credit Provider Training Summary
Client approaches DC to be considered for Debt Review
DC evaluates case and sends 17.1 notice to CPs
CPs send COB response to DC
DC submits case to DCRS
DCRS calculates provisional proposal
DCRS sends prov. proposal back to DC
DC sends prov. proposal to all affected CPs
CP receive prov. Proposal from DC
CP checks Prov. Proposal on DCRS website
CP responds to DC with COB and consent
DC submits all responses to DCRS
DCRS recalculates final proposal
DC submits final proposal to CPs
CP checks Final Proposal on DCRS website
CP responds to DC
DCRS Credit Provider Training Summary

6. Summarised Rules Calculations
Three rules applied to all debts
Apply deemed term to credit cards and allow for payment of DC + Legal fees
Reduce admin fees and increase term
Increase term further and reduce interest rate
Compare calculation result to affordability to check if it solves
Rules agreed upon by Credit Providers and Debt Counsellors
If interested in the rules in greater detail, feel free to contact me for additional information.
DCRS Credit Provider Training Summary

7. DCRS Credit Provider Training Summary
Document Templates
Documents sent between DC and CP have been standardised:
COB
Proposal (Provisional / Final)
Assessment Summary
PDA Payment Plan (Provisional / Final)
DCRS Credit Provider Training Summary

8. DCRS Website - Introduction & purpose
Available exclusively to Credit Providers
Allows verification of Debt Review cases
User logs in
Search for DR cases using DR Reference number
Verify DR case information
DCRS Credit Provider Training Summary

9. DCRS Website - Using the website
This could be a Provisional or Final proposal
DC sends proposal to CP
CP logs onto DCRS website
CP verifies case on website
CP send consent response to DC
DC captures consent response on DCRS
Main point: Consent is still sent to the DC, the DC communicates with the DCRS, the CP only views info on the website
DCRS Credit Provider Training Summary

10. DCRS Website - Login to DCRS website
1. Access website on viewing the ‘Log On’ tab
2. Input user name and password
3. Click ‘Logon’
DCRS Credit Provider Training Summary

11. DCRS Website - Forgot Password?
1. View ‘Password’ tab of Login Screen
2. Input your Username
3. Click ‘Reset’
An containing a new randomly generated password will be sent to your address.
When next logging in, you will be prompted to provide a new password of your choosing
DCRS Credit Provider Training Summary

12. DCRS Website - Main Menu (administrator)
Reset a users password (Admin only)
Main Menu for Operator excludes ‘Change User Password’ and ‘User Maintenance’
Search for Debt Review cases
Create/update users (Admin only)
Log off DCRS
DCRS Credit Provider Training Summary

13. DCRS Website - Create User Step 1: Open User Maintenance
Create/update users (Admin only)
DCRS Credit Provider Training Summary

14. DCRS Website - Create User Step 2: Select ‘Add User’
Listing of all users linked to your Credit Provider
Click ‘Add User’
DCRS Credit Provider Training Summary

15. DCRS Website - Create User Step 3: Capture User Details
Will be used to login
Same Credit Provider as Administrator
Save User
Use for Temp Employees
DCRS Credit Provider Training Summary

16. DCRS Website - Create User Step 4: Retrieve Password
Message sent with randomly generated password to address provided
User must login using this password
User will be prompted to reset password when first logging in
DCRS Credit Provider Training Summary

17. DCRS Website – Update User Step 1: Open User Maintenance
Create/update users (Admin only)
DCRS Credit Provider Training Summary

18. DCRS Website – Update User Step 2: Select User
Click ‘View’ for user record
Use to search for User Records
DCRS Credit Provider Training Summary

19. DCRS Website – Update User Step 3: Update User Details
Change if user should not have access to website
Change if user should reset their password when they next log in
Change is user should have access disabled on specific date
Save changes
DCRS Credit Provider Training Summary

20. DCRS Website –Reset password Step 1: Open ‘Change User Pswd’
Reset a users password (Admin only)
DCRS Credit Provider Training Summary

21. DCRS Website –Reset password Step 2: Select user
Select User ID to reset the password
Search by ID, First Name or Surname
DCRS Credit Provider Training Summary

22. DCRS Website –Reset password Step 3: Capture New Password
Click ‘Save’
DCRS Credit Provider Training Summary

23. DCRS Website –View DR Case Step 1: Open DR Search
Search for Debt Review cases
DCRS Credit Provider Training Summary

24. DCRS Website –View DR Case Step 2: Search for DR Case
Capture DCRS Ref Number and Search
Click ‘View’ on account
DCRS Credit Provider Training Summary

25. DCRS Website –View DR Case Step 3: View Case History
DCRS Search Reference
Provisional/Final
Rule applied in calculation
Case resolved
Click ‘View’ for account
DCRS Credit Provider Training Summary

26. DCRS Website –View DR Case Step 4: View Assessment Screen
DCRS Credit Provider Training Summary

27. Step 4: View Assessment Screen Assessment Summary
Most important Assessment Information
Shows amount & % of gross income
DCRS Credit Provider Training Summary

28. Step 4: View Assessment Screen Payslip Information
Applicant, Partner and Total columns
Original
Revised
See training manual for full description of each field
DCRS Credit Provider Training Summary

29. Step 4: View Assessment Screen Expenditure & Financial Services
Original/revised
‘Home ownership costs/Rent’ includes non-restructured mortgages
DCRS Credit Provider Training Summary

30. Step 4: View Assessment Screen Assets
Unencumbered/Encumbered Assets
Description, Category, Owner (if encumbered), Value
DCRS Credit Provider Training Summary

31. Step 4: View Assessment Screen Once off Fees & Escalation
Paid / Unpaid once-off fees
Escalation month & percentage
Expected % increase in affordability per year
DCRS Credit Provider Training Summary

32. DCRS Website –View DR Case Step 5: View Proposal Screen
DCRS Credit Provider Training Summary

33. Step 5: View Proposal Screen Account Information
List of all accounts showing
Present contractual obligations
Proposed restructured terms
DCRS Credit Provider Training Summary

34. DCRS Website –View DR Case Step 6: View PMT Plan Screen
DCRS Credit Provider Training Summary

35. Step 6: View PMT Plan Screen PMT Plan Account Details
Includes a line per “restructuring phase”
Different restructuring phase per distribution amount
E.g. if CP is to receive R1000 for first 12 months, and R1200 for next 12 months, there will be two lines: 1 for the R1000, one for the R1200.
DCRS Credit Provider Training Summary

36. DCRS Credit Provider Training Summary
Annexure
The following documents form part of this presentation
Annexure A
COB
Proposal (Provisional / Final)
Assessment Summary
PDA Payment Plan (Provisional / Final)
Glossary of terms
Annexure B
DCRS Detail Training Manual
DCRS Credit Provider Training Summary

37. DCRS Credit Provider Training Summary
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DCRS Credit Provider Training Summary