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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.

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Presentation on theme: "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."— Presentation transcript:

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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 Summary2

3 Background & Overview of the DCRS On the DCRS a summary of the debt counsellors 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 Summary3

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 Summary4

5 Debt Review Process DCRS Credit Provider Training Summary5 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

6 Summarised Rules Calculations Three rules applied to all debts 1. Apply deemed term to credit cards and allow for payment of DC + Legal fees 2. Reduce admin fees and increase term 3. 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 DCRS Credit Provider Training Summary6

7 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 Summary7

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 Summary8

9 DCRS Website - Using the website DCRS Credit Provider Training Summary9 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 This could be a Provisional or Final proposal

10 DCRS Website - Login to DCRS website DCRS Credit Provider Training Summary10 1. Access website on viewing the Log On tabwww.debtcounsellingrs.co.za 2. Input user name and password 3. Click Logon

11 DCRS Website - Forgot Password? DCRS Credit Provider Training Summary11 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

12 DCRS Website - Main Menu (administrator) DCRS Credit Provider Training Summary12 Reset a users password (Admin only) Create/update users (Admin only) Search for Debt Review cases Log off DCRS Main Menu for Operator excludes Change User Password and User Maintenance

13 DCRS Website - Create User Step 1: Open User Maintenance DCRS Credit Provider Training Summary13 Create/update users (Admin only)

14 DCRS Website - Create User Step 2: Select Add User DCRS Credit Provider Training Summary14 Listing of all users linked to your Credit Provider Click Add User

15 DCRS Website - Create User Step 3: Capture User Details DCRS Credit Provider Training Summary15 Same Credit Provider as Administrator Will be used to login Use for Temp Employees Save User

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 Summary16

17 DCRS Website – Update User Step 1: Open User Maintenance DCRS Credit Provider Training Summary17 Create/update users (Admin only)

18 DCRS Website – Update User Step 2: Select User DCRS Credit Provider Training Summary18 Click View for user record Use to search for User Records

19 DCRS Website – Update User Step 3: Update User Details DCRS Credit Provider Training Summary19 Change if user should reset their password when they next log in Change is user should have access disabled on specific date Change if user should not have access to website Save changes

20 DCRS Website –Reset password Step 1: Open Change User Pswd DCRS Credit Provider Training Summary20 Reset a users password (Admin only)

21 DCRS Website –Reset password Step 2: Select user DCRS Credit Provider Training Summary21 Select User ID to reset the password Search by ID, First Name or Surname

22 DCRS Website –Reset password Step 3: Capture New Password DCRS Credit Provider Training Summary22 Capture new password Click Save

23 DCRS Website –View DR Case Step 1: Open DR Search DCRS Credit Provider Training Summary23 Search for Debt Review cases

24 DCRS Website –View DR Case Step 2: Search for DR Case DCRS Credit Provider Training Summary24 Capture DCRS Ref Number and Search Click View on account

25 DCRS Website –View DR Case Step 3: View Case History DCRS Credit Provider Training Summary25 Click View for account DCRS Search Reference Provisional /Final Case resolved Rule applied in calculation

26 DCRS Website –View DR Case Step 4: View Assessment Screen DCRS Credit Provider Training Summary26

27 Step 4: View Assessment Screen Assessment Summary Most important Assessment Information Shows amount & % of gross income DCRS Credit Provider Training Summary27

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 Summary28

29 Step 4: View Assessment Screen Expenditure & Financial Services Original/revised Home ownership costs/Rent includes non- restructured mortgages DCRS Credit Provider Training Summary29

30 Step 4: View Assessment Screen Assets Unencumbered/Encumbered Assets Description, Category, Owner (if encumbered), Value DCRS Credit Provider Training Summary30

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 Summary31

32 DCRS Website –View DR Case Step 5: View Proposal Screen DCRS Credit Provider Training Summary32

33 Step 5: View Proposal Screen Account Information List of all accounts showing Present contractual obligations Proposed restructured terms DCRS Credit Provider Training Summary33

34 DCRS Website –View DR Case Step 6: View PMT Plan Screen DCRS Credit Provider Training Summary34

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 Summary35

36 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 Summary36

37 Need Help? DCRS Project Manager Caroline Smith IT Help Desk (021) DCRS Credit Provider Training Summary37


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