KredCor, effective debt collection https://kredcor.co.za Debt collectors in South Africa - business to business. Tue, 19 May 2020 13:36:18 +0000 en-US hourly 1 https://kredcor.co.za/wp-content/uploads/2013/07/cropped-kredcorLogoRiskManPartnerSmall-300x300.jpg KredCor, effective debt collection https://kredcor.co.za 32 32 Debt recovery is a critical operation https://kredcor.co.za/debt-recovery-is-a-critical-operation/ https://kredcor.co.za/debt-recovery-is-a-critical-operation/#respond Thu, 21 May 2020 07:25:00 +0000 https://kredcor.co.za/?p=25649 For a creditor, debt recovery is a critical operation, particularly when a debtor is dealing with multiple creditors. The creditor must recover from each account as much as possible of what was lent to the debtor and still remain in business. However, the way to do this, it seems, is to limit the debtor’s credit […]

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For a creditor, debt recovery is a critical operation, particularly when a debtor is dealing with multiple creditors. The creditor must recover from each account as much as possible of what was lent to the debtor and still remain in business. However, the way to do this, it seems, is to limit the debtor’s credit risk by cutting off his or her access to the cash that they need.

The purpose of any recovery operation is to minimise credit risk. In other words, the more a creditor knows that his or her ability to collect on a loan is limited, the more easily they can “buy time” and prevent the debtor from making problems for themselves.

What happens when you or a client is highly sensitive to credit risk? And how can you effectively minimise credit risk in the recovery of commercial debt?

Usually, lenders have a “light touch” in relation to credit risk. They are aggressive only when you (or your client) have very minimal liquidity. When this is the case, a lender will do all they can to recover as much as they can. You, therefore, are typically in an aggressive recovery phase.

What can you do to minimise credit risk in the recovery of commercial debt? You can:

Control Your Debtors Book – One of the most effective methods of minimising credit risk in the recovery of commercial debt is to make sure that all accounts are tracked correctly. By doing this, a creditor can make sure that a debtor is not using your accounts to facilitate non-payments.

If you have control over your debtor’s book, then you know where they are spending their money and when. You can, therefore, use the resources of a database to find out about their spending habits.

When a creditor does this, they reduce the amount of credit risk in the recovery of commercial debt. You will know how much cash your client has left, and you can work to either increase the amount, or reduce the amount of it available to them.

Monitor Account Activity – A creditor can also effectively minimise credit risk in the recovery of commercial debt by following the activity of the debtor. For example, if a client has never dealt with a particular credit agency before, the creditor will have a hard time following their spending habits. However, if the creditor knows who the client is, and has done business with the agency at some point, they can monitor that client’s spending habits.

This will tell the creditor where the debtor has most likely spent the most, and what that money was used for. If they see that the debtor has purchased goods and services in a specific manner, then they can consider reducing the amount of money that they lend to that client.

Having a system in place to ensure that your clients spend wisely, and minimise credit risk, will be very helpful to you, in the recovery of commercial debt. The more you know about your client’s spending habits, the better chance you have of recovering more of the debt.

When you control your debtor’s book, your creditor knows where they are spending money and when. They can use the resources of a database to find out about their spending habits.

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Top debt collection techniques https://kredcor.co.za/top-debt-collection-techniques/ https://kredcor.co.za/top-debt-collection-techniques/#respond Tue, 19 May 2020 13:08:21 +0000 https://kredcor.co.za/?p=25646 Kredcor specialize in commercial debt collection in Johannesburg South Africa

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Here are the top ten debt collection techniques that have been perfected by expert commercial debt collectors. It’s important to know these techniques if you want to collect on a debt.

The secret debt collection technique is not using a demand letter. This is your first line of defense, but you should also be familiar with your complaint letter.

A letter asking the debtor to contact you for a written solution is not an efficient method. Most of the time, the debtor will respond to the letter and pay the debt in full. If you can wait for some time between the receipt of the demand letter and the receipt of the letter to respond, that is optimal.

Many companies have quality control measures in place, which they use to evaluate the quality of their operations. If you don’t comply with the quality control measures, you could find yourself cut off from valuable customers and your debt collection efforts may be negatively impacted.

For instance, settlement companies are required to inform the consumer about a certain timeframe that has been set for the resolution of the debt. If you fail to comply with this procedure, the debt may be returned to the company.

Companies that are delinquent on payments, have filed for bankruptcy or have had a receiver appointed are not eligible to serve the debt. If you contact these companies directly, it’s likely that the resolution of the debt will occur.

There are several things that make a commercial debt collection business a legitimate one. But it’s also true that most businesses have guidelines or practices that fall short of what’s necessary.

When you are communicating with a company that is not a reputable commercial debt collection agency, it is important to be polite and courteous but also ask several questions to see if there are any inconsistencies in the way they operate. Is the debt collector available to speak to you?

Does the collection agent to offer you a receipt for the debt? Do you receive any response to your correspondence from the collector?

Most debt collection laws allow a collection agent to begin the collection process at any time, without the consumer’s consent. However, you are allowed to be aware of the situation, and to request that they stop your collection if they are unable to establish a payment solution.

Here are the top ten debt collection tactics that you need to be familiar with if you are looking to get paid. Most of them are common sense, but they do work, even for large commercial clients.

The better prepared you are to handle a negotiation, the better off you will be, because the debt collector may have other sources to turn to. It’s never worth throwing away important evidence if you can avoid it, so having some knowledge about these techniques will protect you.

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Let Kredcor be your debt collectors https://kredcor.co.za/let-kredcor-be-your-debt-collectors/ Wed, 15 May 2019 12:56:42 +0000 https://kredcor.co.za/?p=3685 Kredcor can improve your cash flow, by collecting your overdue accounts.

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Improve your cash flow, minimise your credit risk – let Kredcor deal with all your debtors, and get your money back!

See what our clients say about us as their debt collectors, you can be next! We adapt to you, not the other way around!

You can contact us now, to see how we can help you – or just complete the form below, and we will get back to you as soon as possible.

A dedicated Portfolio Manager will help you with:

  • collection of your overdue accounts
  • setting up, or revising, your credit application
  • trace delinquent debtors
  • deal with difficult debtors
  • improve your cash flow and minimising your credit risk
  • collect your debt, anywhere in the world

Thank you for visiting us, we would like to work with you, and become your debt collector of choice!

Kredcor

Just add your details above, and we will get back to you as soon as possible.

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The duties of a Credit Risk Manager https://kredcor.co.za/the-duties-of-a-credit-risk-manager/ https://kredcor.co.za/the-duties-of-a-credit-risk-manager/#respond Wed, 20 Jul 2016 10:12:21 +0000 http://kredcor.co.za/?p=2297 Duties of a credit risk manager

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Credit Risk Management
Credit Risk Management

Credit risk refers to the probability of loss due to a borrower’s failure to make payments on any type of debt. Credit risk management, meanwhile, is the practice of mitigating those losses by understanding the adequacy of both a bank’s capital and loan loss reserves at any given time – a process that has long been a challenge for financial institutions. Let us look at the duties of a Credit Risk Manager

Risk managers advise organisations on any potential risks to the profitability or existence of the company. They identify and assess threats, put plans in place for if things go wrong and decide how to avoid, reduce or transfer risks.

Risk managers are responsible for managing the risk to the organisation, its employees, customers, reputation, assets and interests of stakeholders.

They may work in a variety of sectors and may specialise in a number of areas including:

  • enterprise risk;
  • corporate governance;
  • regulatory and operational risk;
  • business continuity;
  • information and security risk;
  • technology risk;
  • market and credit risk.

Herewith the list of duties of a Credit Risk Manager:

  • To establish and monitor policies and procedures that will help the company meet its sales and risk management goals.
  • Monitoring and evaluating active accounts to reduce or prevent bad debt losses.
  • Keep policies and procedures current, and communicate them to your subordinates and to other affected parties.
  • To listen to input from sales and sales management and then look for ways to help the sales department achieve its goals without damaging your department’s ability to manage risk and control payment delinquency to acceptable levels.
  • Control the costs to operate the credit and collection functions
  • Convincing senior management when opportunities present themselves to invest in technology that can help the credit department cut costs, accelerate the decision making process, and/or improve the quality and consistency of credit decisions being made
  • Review strategic credit positions
  • Assess Changes in Largest Exposures
  • Assess Counterparty Ratings
  • Review if  there are any pending credits to be cleared by the chief credit officer or board
  • Review if there are any credit limit excesses
  • Review Credit Limits
  • Assess if provisions are up to date
  • Review if concentrations are within stipulated limits
  • Assess if all credit exposures are covered and mapped
  • Check for wrong way positions
  • Report all significant risks
  • Ensure credit risk reports reach all relevant parties
  • Discuss significant credit risks if any with top management
  • Conduct stress and scenario testing and analysis of portfolio at global levels
  • Ensure no relevant scenarios are missed in testing
  • Review past or anticipated changes in provisions
  • Review if any changes need to be made in specific provisions
  • Ensure all transactions have full and proper documentation
  • Review rating triggers and break clauses
  • Ensure credit protection is fully understood and utilized
  • Explore if there are any further possibilities of exploiting credit protection
  • Establishing and communicating department goals and performance results to subordinates
  • To staff the department, train its employees and delegate work to meet senior management’s expectations and the market’s requirements
  • To actively support employee growth through training, performance reviews, mentoring and coaching
  • To meet corporate standards relating to managing subordinates, avoiding conflicts of interest, communicating with customers, and interacting with peers and superiors.
  • To praise subordinates in public, and reprimand them in private.
  • planning, designing and implementing an overall risk management process for the organisation;
  • risk assessment, which involves analysing risks as well as identifying, describing and estimating the risks affecting the business;
  • risk evaluation, which involves comparing estimated risks with criteria established by the organisation such as costs, legal requirements and environmental factors, and evaluating the organisation’s previous handling of risks;
  • establishing and quantifying the organisation’s ‘risk appetite’, i.e. the level of risk they are prepared to accept;
  • risk reporting in an appropriate way for different audiences, for example, to the board of directors so they understand the most significant risks, to business heads to ensure they are aware of risks relevant to their parts of the business and to individuals to understand their accountability for individual risks;
  • corporate governance involving external risk reporting to stakeholders;
  • carrying out processes such as purchasing insurance, implementing health and safety measures and making business continuity plans to limit risks and prepare for if things go wrong;
  • conducting audits of policy and compliance to standards, including liaison with internal and external auditors;
  • providing support, education and training to staff to build risk awareness within the organisation.

Some of the skills of an effective Credit Risk Manager:

  • technical acumen;
  • problem-solving and decision-making abilities;
  • analytical skills and a good eye for detail;
  • ability to cope under pressure;
  • planning and organisation skills;
  • negotiation skills and the ability to influence people;
  • good communication and presentation skills;
  • commercial awareness;
  • numerical skills and the ability to evaluate costs;
  • ability to understand broad business issues.

Challenges to Successful Credit Risk Management:

  • Inefficient data management. An inability to access the right data when it’s needed causes problematic delays.
  • No groupwide risk modeling framework. Without it, banks can’t generate complex, meaningful risk measures and get a big picture of groupwide risk.
  • Constant rework. Analysts can’t change model parameters easily, which results in too much duplication of effort and negatively affects a bank’s efficiency ratio.
  • Insufficient risk tools. Without a robust risk solution, banks can’t identify portfolio concentrations or re-grade portfolios often enough to effectively manage risk.
  • Cumbersome reporting. Manual, spreadsheet-based reporting processes overburden analysts and IT.
  • Unclear duties of a Credit Risk Manager. When a Manager is unsure of what is expected of him or her, especially on entering a new business industry.

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Steel https://kredcor.co.za/steel/ https://kredcor.co.za/steel/#respond Thu, 26 May 2016 10:23:41 +0000 http://kredcor.co.za/?p=2278 As you can see on this page, Kredcor approaches an Industry, and to continue delivering the best service we can, we familiarise ourselves wit that Industry and contact the main role players of that Industry, to assist them with the collection of their overdue accounts, as well as compiling fresh, verified credit reports on our […]

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Kredcor, debt collectors in the Steel Industry
Kredcor, debt collectors in the Steel Industry

As you can see on this page, Kredcor approaches an Industry, and to continue delivering the best service we can, we familiarise ourselves wit that Industry and contact the main role players of that Industry, to assist them with the collection of their overdue accounts, as well as compiling fresh, verified credit reports on our clients’ potential clients.

Is your financial information sensitive? Industries have different approaches, as to whether the role players share sensitive info, or keep it private? If required, Kredcor signs NDAs with all the role players.                         (Non-Disclosure Agreements) This means that your data stays private, and is not taken out of the Kredcor office, nor shared with any third parties.

As debt collectors, we know the Steel Industry well enough, to handle your debtors with the necessary firm approach, while keeping in mind the role the Economy plays. We also know when your debtor is just using a lame excuse, not to pay you.

Because we are in contact with all the players in the Steel Industry, we have exposure to all the debtors, and we know which are “good” debtors, which debtors need to be “strongly managed” and which debtors should be avoided.

Kredcor is already active in the Steel Industry, in the following sub-divisions:

  • Alluminium
  • Stainless Steel
  • Re-Inforcing and Mesh
  • Sheeting
  • Galvinising
  • Foundries
  • Manufacturers
  • Distributors

We would like to have you on board as well.

How can Kredcor help you?

  • we collect your overdue accounts on your behalf (this means improved cash flow, less credit risk)
  • we compile credit reports with fresh, verified information on your potential clients, even existing clients as well (this means better, qualified credit risk exposure)
  • tracing and default listing of non paying clients
  • determination of the maximum amount of credit which can be extended to a client

Phone Kredcor for an appointment now, and let Kredcor assist you with the collection of your overdue accounts, and the compilation of fresh, verified credit reports.

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Agriculture https://kredcor.co.za/agriculture/ https://kredcor.co.za/agriculture/#respond Wed, 11 May 2016 12:28:57 +0000 http://kredcor.co.za/?p=2261 As you can see on this page, Kredcor approaches an Industry, and to continue delivering the best service we can, we familiarise ourselves wit that Industry and contact the main role players of that Industry, to assist them with the collection of their overdue accounts, as well as compiling fresh, verified credit reports on our […]

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Kredcor serves the Agricultural Industry as debt collectors
Kredcor serves the Agricultural Industry as debt collectors

As you can see on this page, Kredcor approaches an Industry, and to continue delivering the best service we can, we familiarise ourselves wit that Industry and contact the main role players of that Industry, to assist them with the collection of their overdue accounts, as well as compiling fresh, verified credit reports on our clients’ potential clients.

Is your financial information sensitive? Industries have different approaches, as to whether the role players share sensitive info, or keep it private? If required, Kredcor signs NDAs with all the role players.                         (Non-Disclosure Agreements) This means that your data stays private, and is not taken out of the Kredcor office, nor shared with any third parties.

As debt collectors, we know the Agricultural Industry well enough, to handle your debtors with the necessary firm approach, while keeping in mind the role Nature plays, whether it is drought, pests or excessive rain or hail damage. We also know when the farmer is just using a lame excuse, not to pay you.

Kredcor is already active in the Agriculture Industry, in the following sub-divisions:

  • Chemicals
  • Equipment
  • Nurseries
  • Supplies
  • Feeds
  • Fertilizer
  • Seeds
  • Scientific services
  • Irrigation
  • Crop protection services
  • Co-ops

We would like to have you on board as well.

How can Kredcor help you?

  • we collect your overdue accounts on your behalf (this means improved cash flow, less credit risk)
  • we compile credit reports with fresh, verified information on your potential clients, even existing clients as well (this means better, qualified credit risk exposure)
  • tracing and default listing of non paying clients
  • determination of the maximum amount of credit which can be extended to a client

Phone Kredcor for an appointment now, and let Kredcor assist you with the collection of your overdue accounts, and the compilation of fresh, verified credit reports.

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Business rescue https://kredcor.co.za/business-rescue/ https://kredcor.co.za/business-rescue/#respond Thu, 14 Apr 2016 14:10:43 +0000 http://kredcor.co.za/?p=2239 Business Rescue Chapter 6 of the Companies Act 2008 (Act 71 of 2008) provides for the efficient rescue and recovery of financially distressed companies, in a manner that balances the rights and interests of all relevant stakeholders.  All businesses that are financially distressed and want to take a decision to start rescue proceedings can file […]

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Chapter 6 of the Companies Act 2008 (Act 71 of 2008) provides for the efficient rescue and recovery of financially distressed companies, in a manner that balances the rights and interests of all relevant stakeholders. 

All businesses that are financially distressed and want to take a decision to start rescue proceedings can file a notice to start business rescue proceedings with the CIPC.

Business rescue can be initiated by:

  • The board of directors;
  • By an application to court when the business is financially distressed;
  • Various affected persons by application to court (including shareholders, creditors, registered trade unions and employees).

The decision by a board to pass a resolution for business rescue needs to be done urgently to enable the business rescue practitioner to take control for the purposes of having a business rescue plan approved and thereafter implemented.

A business rescue practitioner will be appointed to oversee and supervise on a temporary basis the management, affairs and business of the company and to devise, prepare, develop and implement a business rescue plan.  The plan will be implemented if approved by creditors and shareholders to the extent that the rights of the shareholders will be affected.

A director or a member would have a duty to pass a resolution for a company’s business rescue or alternatively resolve to wind up or liquidate as soon as he or she becomes knowingly aware that the company is either:

  • financially distressed or
  • is trading in insolvent circumstances (both factually in that its liabilities exceed its assets, and commercially in that it cannot pay its debts to creditors as and when they fall due

During the company’s business rescue proceedings, each director of the company:

  • would continue to exercise the functions of a director subject to the authority of the practitioner duly appointed
  • must assist the practitioner that is expected to operate the company and to continue to run its business
  • may delegate any power or function to the practitioner duly appointed that would have full management control of the company in substitution for its board and pre-existing management.

Important:  No liquidation proceedings must have commenced against the company when a decision is taken to start business rescue proceedings.

To file for business rescue, follow these steps:

1. Register as a Customer

To view information on how to register as a customer, click here.  If you are already registered as a customer, and know your customer code and password, proceed to step 2.

2. File for business rescue

The following supporting documents must be included in your e-mail:

  • Sworn statement with reasons for resolution set out in detail.
  • Indication of primary business activities, PI Score break down and total
  • Resolution by company (directors)
  • Practitioner Nomination letter by company
  • Acceptance letter of the nomination from Practitioner (A business rescue practitioner has to be licensed as a practitioner before he can be appointed.  See “Application for License as Business Rescue Practitioner”.
  • If the board decides not to adopt  a resolution commencing business rescue proceedings, after considering the financial state of the company, the notice of decision not be begin business rescue (CoR123.3) must be filed with CIPC by emailing it to businessrescue@cipc.co.za together with a statement of the criteria for being financially distressed and the reason for not adopting a business rescue resolution.
Service turnaround time:  2 working days of receipt of notice to start business rescue proceedings.

Click here to lodge an enquiry.

Important:  Queries relating to  transactions already lodged should only be submitted once the Service Turnaround Time has lapsed.

You can track the progress of your document by clicking on “Track my transactions” on the home page.  Click on  “Additional Services”, select “Customers” and then select “Document Status”. To check the tracking number, go to “Customer Transactions” under “Customers”.

File and Publish Notice of Appointment of Practitioner

Within five days after filing a resolution, the company must appoint a business rescue practitioner, conditionally licensed for the project.

Click here to view a list of Licensed Business Rescue Practitioners.

Once the nominated practitioner received a registration certificate, then the company applying for business rescue must print and complete form CoR 123.2.

  • The CoR123.2 must be accompanied by a consent letter of the practitioner accepting the appointment.

Scan and e-mail the completed and signed documents to businessrescue@cipc.co.za

  • The company must also inform all affected parties of the appointment.

File a status report with CIPC

The Practitioner must file a status report (CoR125.1) with CIPC after three months by e-mailing it tobusinessrescue@cipc.co.za. If business rescue proceedings are not concluded within 3 months, or within the time extension granted by court, the business rescue practitioner must file monthly report updates with the CIPC or to the court, in the case of a court-ordered business rescue process, until the proceedings are concluded.

File Notice of Substantial Implementation of business rescue plan or business rescue termination

Print and complete CoR125.2 (Notice of Termination of Business Rescue Proceedings)  or CoR125.3(Notice of Substantial Implementation of a Business Rescue Plan)

E-mail the completed form to businessrescue@cipc.co.za.

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Liquidating or winding up your company https://kredcor.co.za/liquidating-or-winding-up-your-company/ https://kredcor.co.za/liquidating-or-winding-up-your-company/#respond Mon, 14 Mar 2016 13:40:30 +0000 http://kredcor.co.za/?p=2234 Liquidating or winding up your company Liquidation and deregistration are not the same thing. Liquidation Liquidation implies that the business is not able to pay its debts. Liquidation further implies that the business will cease to operate (generally as a result of financial problems). The liquidation may come about: as a result of a legal […]

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Business in liquidation
Business in liquidation

Liquidation and deregistration are not the same thing.

Liquidation

Liquidation implies that the business is not able to pay its debts.

Liquidation further implies that the business will cease to operate (generally as a result of financial problems).

The liquidation may come about:

  • as a result of a legal court process, or
  • by the creditors or
  • it may be voluntary liquidation i.e. applied for by members of the CC.

Voluntary Winding up of a company

Solvent company

A solvent company or close corporation may be wounded up voluntarily by members or by a creditor by the adoption of a Special resolution by the company or close corporation.  The resolution must be filed with the CIPC by filing the CoR40.1 with supporting documents.

Before the resolution is adopted by the company or close corporation, the company or close corporation must set security with the Master of the High Court for the payment of the company’s debts within no more than 12 months after the start of the winding-up of the company or close corporation or obtain consent of the Master to dispense with security.

For consent to dispense with security the following information must be provided to the Master:

  • A sworn statement by a director (if a company) or member (if a close corporation) authorised by the board of the company stating that the company or close corporation has no debts;  and
  • A certificate by the company’s or close corporation’s auditor, or a person who meets the requirements for the appointment of an auditor (if company does not have a auditor) stating that to the best of the auditor’s knowledge and belief and according to the financial records of the company or close corporation, the company or close corporation appears to have no debts.
  • Note:  It should be noted that the above requirements are determined by the Master itself and therefore, the above may not be correct.  Therefore, the above only serves as a guide as to what the Master may require.
  • A company or close corporation remains a juristic person and retains all of its powers as such while it is being winded up voluntarily.  From the beginning of the company close corporation’s winding-up, it must stop carrying on its business except for those activities required for the benefit of the winding up process.  Also all the powers of the company’s directors or close corporation’s members cease, except to the extent specifically authorised,
    • by the liquidator or shareholders in  a general meeting in the case of winding-up by company, or
    • by the liquidator or creditors in the case of winding-up by creditors.
  • A company or close corporation is dissolved as of the date its name is removed from the companies’ or close corporation register.  The removal of a company or close corporation’s name does not affect the liability of any former director or shareholder (for close corporation its members) or any other person in respect of any act or omission that took place before the close corporation was removed from the register.
  • At any time after a company or close corporation has been dissolved, the liquidator or other person with an interest may apply to a court for an order declaring the dissolution to have been void, or any other order that is just and equitable in the circumstances and if the court declares the dissolution to have been void, any proceedings may be taken against the company or close corporation as might have been taken if the company close corporation had not been dissolved.
  • Legal personality is only terminated once the entity is “dissolved”.

To voluntarily liquidate your solvent company, follow these steps:

  1. Register as a Customer

To view information on how to register as a customer, click here.  If you are already registered as a customer, and know your customer code and password, proceed to step 2.

2. Deposit funds

Deposit R250 into the CIPC bank account.  For the bank account details, click here.  Use your customer code as reference when depositing money into the CIPC bank account.

3. Apply for solvent liquidation of your company or close corporation

The following supporting documents must be included in your e-mail for winding up by the company or creditors:

    • Security – JM12 or consent to dispense with security – if winding up is by company or close corporation itself;
    • Original or certified copy of the written special resolution or minutes (accompanied by the agenda/notice) of the meeting at which the decision to wind-up was taken;
    • Originally certified ID copy of signatory (active director (company) or member (close corporation)/company secretary/representative)
    • Power of attorney – if representative
Service turnaround time:  10 working days from date of tracking.

Click here to lodge an enquiry.

Important:  Queries relating to  transactions already lodged should only be submitted once the Service Turnaround Time has lapsed.

You can track the progress of your document by clicking on “Track my transactions” on the home page.  Click on  “Additional Services”, select “Customers” and then select “Document Status”. To check the tracking number, go to “Customer Transactions” under “Customers”.

Insolvent company or close corporation

To voluntarily wind up your insolvent company or close corporation, follow these steps:

1. Register as a Customer

To view information on how to register as a customer, click here.  If you are already registered as a customer, and know your customer code and password, proceed to step 2.

2. Deposit funds

  • Deposit R80.00 (plus penalty of R150.00 if not lodged within a month after the meeting).  For the bank account details, click here.  Use your customer code as reference when depositing money into the CIPC bank account.

3. Apply for insolvent liquidation of your company or close corporation

Scan and e-mail the completed and signed documents together with supporting information toliquidations@cipc.co.za

  • The following supporting documents must be included in your e-mail:
    • CM25a or CM25 plus notice of the meeting;
    • Original or certified copy of the written special resolution or minutes (accompanied by the agenda/notice) of the meeting at which the decision to wind-up was taken;
    • Security – JM12 or consent to dispense with security – if winding up is by company
    • CM100 – Statement of Company AffairsOriginally certified ID copy of signatory on the CM 26 (active director/company secretary/representative)
    • Power of attorney – if representative
Service turnaround time: 10 working days from date of tracking.
Click here to lodge an enquiry.

Important:  Queries relating to  transactions already lodged should only be submitted once the Service Turnaround Time has lapsed.

You can track the progress of your document by clicking on “Track my transactions” on the home page.  Click on  “Additional Services”, select “Customers” and then select “Document Status”. To check the tracking number, go to “Customer Transactions” under “Customers”.

Liquidation or Winding up by Court Order or setting aside of liquidation proceedins or dissolution

To wind up a company close corporation by court order, follow these steps:

1. Register as a Customer  (preferable, but not compulsory)

To view information on how to register as a customer, click here.  If you are already registered as a customer, and know your customer code and password, proceed to step 2.

2. Wind up the company or close corporation by court order

E-mail the following to  liquidations@cipc.co.za

  • Letterhead of person submitting court order indicating contact details of person submitting it and customer code (preferable); and
  • Copy of court order.
Service turnaround time:  10 working days from date of tracking.
Click here to lodge an enquiry.

Important:  Queries relating to  transactions already lodged should only be submitted once the Service Turnaround Time has lapsed.

You can track the progress of your document by clicking on “Track my transactions” on the home page.  Click on  “Additional Services”, select “Customers” and then select “Document Status”. To check the tracking number, go to “Customer Transactions” under “Customers”.

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What is prescription https://kredcor.co.za/what-is-prescription/ https://kredcor.co.za/what-is-prescription/#respond Tue, 02 Feb 2016 13:40:31 +0000 http://kredcor.co.za/?p=2151 What does prescription mean? * The Prescription Act 68 of 1969 (“PA”) says it means a debt (for example payment of money) is extinguished after the lapse (passing) of a time period. * South Africa had different laws which specify time periods, for example the PA says that contractual and delictual debts extinguish after 3 […]

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What does prescription mean?
* The Prescription Act 68 of 1969 (“PA”) says it means a debt (for example payment of money) is extinguished after the lapse (passing) of a time period.
* South Africa had different laws which specify time periods, for example the PA says that contractual and delictual debts extinguish after 3 years from when prescription starts.
* Prescription may be delayed or interrupted.

What is prescription of debt
What is prescription of debt?

What are the consequences of an extinguished debt?
* The debtor is not liable to the creditor for a debt after the time period has lapsed. (3 years)
* The creditor may not institute legal action against the debtor for a debt that prescribed.

When does prescription start?
* As soon as the debt is due (a debt is due once the creditor can identify the debtor and the facts from which the debt arises).
* If the debtor prevents the creditor from gaining knowledge of the debt (excluding debts arising from agreements) prescription runs from when the creditor has knowledge of the existence of the debt.

When will prescription be delayed?
* Creditor is a minor, insane, or under curatorship
* Debtor is outside the Republic of South Africa
* Creditor and the debtor are married to each other
* Creditor and the debtor are partners and the debt arose from a partnership agreement
* Debt is the object of a dispute in arbitration; or
* Executor of a deceased estate has not yet been appointed

When is prescription interrupted?
The running of prescription is interrupted by:
* Acknowledgement of liablity by the debtor; or
* A service of a process on the debtor, where the creditor claims payment for the debt (for example, Kredcors Letter of Demand or Summons)

Prescription time period:
Time period before a debt is extinguished      Description of debt to be extinguished
30 Years                                          * A debt secured by a mortgage bond
* A Judgement debt (given by courts)
* A debt for tax
* A debt owed to the state for profits relating to substances (such as mine minerals)
3 Years                                           * Contractual debts (Where debt/payment arises from an agreement between the debtor and creditor)
 * Delictual debts (Where a debt/payment arises from  damages caused by the debtor to the creditor)

 

How do you know if a debt has prescribed?

If, in the past three years, a debtor have not: made any payment towards settling a debt, acknowledged owing the money in any way or agreed to pay it in writing, or been summonsed in respect of it, the debt has prescribed.

The debt-collecting company or legal firm should close its file on the debtor.

The National Credit Act prohibits the listing of a prescribed debt.  

It follows, then, that it’s unethical for debt collectors to use the threat of “blacklisting” in making demands for payment.

KEY:

* EXTINGUISHED – The debt comes to an end

* IMPEDIMENT – A hindrance or obstruction

* DELAYED – Prescription is suspended/put on hold to a later date

* INTERRUPTED – Prescription is broken and can start afresh

Article by Marilè von Loggerenberg, Kredcor.

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Code of Conduct https://kredcor.co.za/code-of-conduct/ https://kredcor.co.za/code-of-conduct/#respond Wed, 20 Jan 2016 13:50:17 +0000 http://kredcor.co.za/?p=2134 CODE OF CONDUCT FOR DEBT COLLECTORS PROMULGATED IN TERMS OF SECTION 14 OF THE DEBT COLLECTORS ACT, 1998 (ACT 114 OF 1998) (CONSOLIDATED AND ANNOTATED) 6 December 2007 GOVERNMENT NOTICE COUNCIL FOR DEBT COLLECTORS NO. R. 663 16 MAY 2003 DEBT COLLECTORS ACT, 1998 (ACT NO. 114 OF 1998) CODE OF CONDUCT The Council for […]

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CODE OF CONDUCT FOR DEBT COLLECTORS

PROMULGATED IN TERMS OF SECTION 14 OF THE DEBT COLLECTORS ACT, 1998
(ACT 114 OF 1998)

(CONSOLIDATED AND ANNOTATED)

6 December 2007
GOVERNMENT NOTICE

COUNCIL FOR DEBT COLLECTORS

NO. R. 663 16 MAY 2003

DEBT COLLECTORS ACT, 1998 (ACT NO. 114 OF 1998)

CODE OF CONDUCT

The Council for Debt Collectors has, under section 14 of the Debt Collectors Act,
1998 (Act No. 114 of 1998), with the approval of the Minister of Justice and
Constitutional Development, adopt a code of conduct in the Schedule.

SCHEDULE

1. In this code of conduct “the Act” means the Debt Collectors Act, 1998 (Act
No. 114 of 1998), and any word or expression to which a meaning has been
assigned in the Act has the meaning so assigned to it.
2.(1)The Council was established by the Act to exercise control over the
occupation of debt collector.

(2) In terms of section 14 of the Act, the Council adopted this code of conduct
in order to govern the conduct of debt collectors. When considering a complaint,
the Council shall take the provisions of the Act as well as the code of conduct
duly into consideration in determining whether or not a debt collector is guilty of
improper conduct.
(3) The code shall be binding on all debt collectors in the Republic, and all
debt collectors shall honour it in letter and in spirit.
3. All the transactions and actions of a debt collector in the process of
administering and collecting debts shall at all times be just, fair and honest. In
the course of administering or collecting a debt, a debt collector shall not
deliberately lie about, or misrepresent any fact, truth, instruction or mandate in
any way, with the intention of benefiting such a debt collector or his or her
employer or principal at the cost or expense of a debtor, a creditor, or any
member of the public.

4. A debt collector shall at all times respect the confidentiality and privacy of
any information supplied by a debtor and shall be factual, truthful and tactful in
using such information.
5.(1) Should a debt collector disclose or supply information about the conduct of
a debtor’s account for the use and benefit of creditors, to such creditors directly,
or to a credit bureau, such information should not be specifically prohibited from
disclosure by the debtor, or prohibited from disclosure or use by law, and subject
to all such information being truthful and verifiable, and in compliance with this
code.

(2) A debt collector, in the process of collecting a debt, shall have due regard
for the person, the property and the civil rights of a debtor, and shall ensure that
any action taken against a debtor does not humiliate, threaten or cause distress
to such a debtor.
(3) In collecting or attempting to collect a claim a debt collector shall not –
(a) collect
or attempt to collect for a creditor money in excess of the
amount owing by the debtor to the creditor, except for interest and
costs legally recoverable;
(b) misrepresent the
true nature of his or her business, or threaten to
institute legal proceedings, whether civil or criminal, if there is no
intention to carry out such a threat;
(c) utilize a communication which simulates legal or judicial processes;
(d) threaten violence or harm to the debtor, those related to him, or his or
her or their property;
(e) use
obscene, defamatory or threatening language when
communicating with a debtor or persons related to him;
(f)
communicate with a debtor when his or her legal adviser has notified
the debt collector in writing to communicate with the legal adviser;
(g) abuse or intimidate a debtor in any manner, whether orally or in writing,
in order to induce a person to pay a debt;
(h) call
on a debtor, or park in front of a debtor’s residential or work
address in a vehicle which is conspicuously marked in any way that
discloses its purposes and whereby the debtor may be embarrassed;

(i)
make telephone or personal calls or send written communications
which may constitute excessive harassment of the debtor, his or her
spouse or any member of his or her family;
(j)
make telephone calls or personal calls for the purpose of demanding
payment of a debt on a Sunday or between the hours of nine o’clock in
the evening and six o’clock in the morning on any other day, unless the
debtor or his or her spouse requests the debt collector to do so;
(k) engage
in any other excessive conduct which can reasonably be
expected to harass the debtor or persons related to him or her;
(l)
disclose or threaten to disclose information which could adversely
affect the debtor’s reputation for creditworthiness, knowing or having
reason to suspect that the information is false;
(m)initiate or threaten to initiate communication with the debtor’s employer
prior to obtaining final judgment against the debtor, in order to exert
pressure on the debtor, although this does not prohibit a debt collector
from communicating with the debtor’s employer solely to verify
employment status or earnings or where an employer has an
established debt counseling service or procedure;

(n) communicate
with an employer, acquaintance, friend, relative or
neighbour of the debtor, unless such a person stands surety for the
debtor, or unless it is to obtain the debtor’s address or telephone
number;
(o) disclose or threaten to disclose to a person other than the debtor or his
or her spouse if also liable, information concerning the existence of the
claim, except through proper legal proceedings, although this does not
prohibit lawful disclosure to another person of such information,
provided the debtor is notified of such communication;
(p) disclose or threaten to disclose information of a debt which with valid
reason is disputed by the debtor, without disclosing the fact that the
debtor disputes such debt;
(q) give to any person, by implication, inference or express statement, any
false or misleading information that may be detrimental to a debtor, his
or her spouse or any member of his or her family;
(r) give, or threaten to give, by implication, inference or statement, to the
person who employs a debtor, his or her spouse or any member of his
or her family, information that may adversely affect the employment or

employment opportunities of the debtor, his or her spouse or any member of his or her family;

(s) make a demand for payment of an account by telephone, personal call
or in writing, without indicating the name of the creditor to whom the
debt is owing, the balance of the account and the identity and the basis
of the claim of the person making the demand, or
(t)
commence or continue an action for the recovery of a debt in the name
of the debt collector as plaintiff, unless such debt has been ceded to
the debt collector in good faith.
6. A debt collector shall at all times comply with the Act and other laws of the
Republic and shall adhere to all codes and regulations made in terms of the
Consumer Affairs (Unfair Business Practices) Act, 1988 (Act 71 of 1988), or any
other law, where the contents of such a law, code or regulation determines the
relationship between a creditor, debt collector and any debtor.
7. (1) A debt collector shall ensure that, in the administration of a debtor’s
account, the collection process is handled professionally.
(2) In administering an account a debt collector shall not employ or allow any
employee, agent or any other third party employed or instructed for the purpose
of administering such account to make use of any method or technique or
procedure aimed at deliberately humiliating or threatening the person of the
debtor, the business entity of such a debtor, or the family or relatives of such a
debtor.
(3) A debt collector shall ensure that criteria of fairness and activities of the
highest moral standards are at all times maintained in any environment where
debtors’ accounts are administered and collected.
(4) A debt collector shall never allow any personal emotion or any unfriendly
feelings towards any debtor to become evident in any dealings with such a
debtor, but shall at all times retain a professional approach, and shall be guided
in all dealings by sound principles and procedures of debt collection and debt
management.
7A. In terms of a debt collector’s general duty to members of the public and
other persons and bodies a debt collector:

(a) shall not, in conducting his or her business, do or omit to do any act
that is or may be contrary to the integrity of debt collectors in general;
(b) shall protect the interests of his or her client at all times to the best of
his or her ability, with due respect to all other parties concerned; and
(c) shall not wilfully or negligently fail to perform any work or duties with
such degree of care and skill as might reasonably be expected of a
debt collector.
[Paragraph 7A inserted by Government Notice R 93 of 4 February 2005]

8. The primary purpose of the code of conduct is to promote exemplary
conduct. Notwithstanding this, a debt collector shall be guilty of improper
conduct, if he or she contravenes any provision of the code of conduct, or fails to
comply with any provision thereof and may be dealt with in accordance with the
relevant disciplinary procedure.

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