Case Study 1. Consolidation Loan



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1 Case Study 1 Consolidation Loan 1) Old Mutual Consolidated loan granted 18 February 2010. Monthly instalment was R5434.57. See pages 7 to 16 below. First Debt Review Application 2) First Application into debt review 19 March 2010. Rehab amount R3147.08 3) Old Mutual COB was for R98,606.84 @ 34.75% interest. Affordability Assessment 4) Old Mutual only accepted the proposal after showing them that they had inserted fraudulent data into the application form. See Page 12 below. 5) It was clear from her bank statement which was also submitted that her rent was R3000.00 and her car instalment was R1900.00 per month. See Bank Statements at pages 21 & 22 below to compare charges with what was recorded. Second Application into debt review 6) Court Order was granted on the 13 April 2011. Her monthly amount payable to Old Mutual was starting at R1347.70 @ 10% interest. See page 3 to 5 below. 7) 8 months later, in January 2012, the client withdrew from debt review because Old Mutual enticed her to leave debt review with a repayment plan of R1962 over 48 months. At this stage, her full rehab amount was servicing the Old Mutual Consolidation Loan. See Email correspondence pages 28 to 33 below. Third Application into Debt Review 8) Client begged me to assist her once again in September 2012. She was by this stage even more over indebted than before. She had incurred a further 5 credit agreements to the value of R140,181.50 since departing debt review.

2 Rolling of Debt 9) Old Mutual had also cancelled their agreement which was used to entice her out of her Second Debt Review and she had begun rolling money to service the debt. 10) Bayport gave the first loan to her after terminating from debt review. She was terminated on the 30 January 2012 and she received her first loan on the 29 March 2012 for an amount of R6115.60 @ 31.1%. 11) African Bank granted her a credit card on 11 April 2012 for R26310.79 @ 15% as well as a personal loan on the same day for R66150.06 @29.80%. 12) Her last loan was granted by Experato on the 28 May 2012 for an amount of R16,998.31 @ 32%.

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Ken Bredenkamp 28 From: Sent: To: Cc: Subject: Follow Up Flag: Flag Status: Rochelle Bruiners [Rochelle.Bruiners@totalgaz.co.za] 03 February 2012 03:00 PM 'Deborah Solomon' 'Elzanne' RE: Rochelle Bruiners - Regarding No payment Follow up Completed Hi Deborah I have spoken to the Legal Department at Old Mutual and they have given me an amount of R1962 per month for 48 months. They will give this all to me in writing once I send through the letter of cancellation from you. My reasons for doing this: 1. I have learnt a lot about debt management the past couple of years that I have been with you and I am very confident that I can do this payment arrangement on my own. 2. Because my other debt has been paid up, I can use this money towards my rent because it is more than what I am currently paying. 3. I am striving towards no debt and hence the reason I am buying whatever I require in cash and therefore save on interest of having to pay accounts. Deborah, I understand your concern and the risk I am taking, but I feel confident enough to do this. I am very grateful for everything you have done for me and for the time you have taken to help me in my time of need. I have learnt a lot from you and I am very thankful for that. I know I am taking a risk but if I don t do this now, I will never be able to stand on my own feet and manage my own accounts. So, yes, I am sure that I want to cancel and do my payments on my own from end of this month. Please forward me the letter of cancellation ASAP so that I can put the process in motion. Thanks & Regards Rochelle Bruiners Senior Buyer Tel: 021 941 4025 Fax: 086 633 4908 Cell: 083 644 0815 email: rochelle.bruiners@totalgaz.co.za 1

29 LPG stands for Liquified Petroleum Gas which is energy in a bottle. It is versatile, fast, clean, powerful portable and most importantly, very safe Please do not print unless it is necessary From: Deborah Solomon [mailto:deborah@debko.co.za] Sent: Friday, February 03, 2012 1:30 PM To: Rochelle Bruiners Cc: 'Elzanne' Subject: RE: Rochelle Bruiners - Regarding No payment Importance: High Hi Rochelle I have no problems in terminating you. I need you to please respond to this email first. 1) Are you aware that your loan will revert back to normal interest and you will be held liable for the arrears, including the arrears being taken at your normal interest? 2) In accordance to your court order you will finish your debt review in less than 1 and a half years from to date? 3) Have you checked with Old Mutual how much longer you will have to pay them off? 4) Ask Old Mutual for the amount that you would have to paid to them in full, by the time you pay them off directly. I cannot understand why you would want to put yourself at risk with your debt going from less than 100,000 to repay back in side of debt review, to much more than this outside of debt review. Please make sure you know what you are getting yourself into before I take the relevant steps to terminate you. Get these figures from Old Mutual and make sure you have it in writing. Let me know Deborah From: Rochelle Bruiners [mailto:rochelle.bruiners@totalgaz.co.za] Sent: 03 February 2012 01:07 PM To: 'Elzanne' Cc: 'Deborah Solomon' Subject: RE: Rochelle Bruiners - Regarding No payment I understand about the court order, but I have also had a discussion with the Old Mutual Legal Department and they are willing to assist me to do my own payments as soon as I get the cancellation letter from you. Please do not try to change my mind because I am confident in myself and I know I can handle this myself. Regards Rochelle From: Elzanne [mailto:info@debko.co.za] Sent: Friday, February 03, 2012 12:56 PM To: Rochelle Bruiners 2

30 Subject: RE: Rochelle Bruiners - Regarding No payment Importance: High Hi Rochelle, I will have discuss with Deborah, as you have a court order in place and your court order is law and as per the ruing of the Magistrate. Deborah is currently not in the office, so I will revert back to you soonest. I trust you find the above in order. Regards Elzanne From: Rochelle Bruiners [mailto:rochelle.bruiners@totalgaz.co.za] Sent: 03 February 2012 12:25 PM To: 'Elzanne' Subject: RE: Rochelle Bruiners - Regarding No payment The ITC report I checked was a very current one January 2012 From: Elzanne [mailto:info@debko.co.za] Sent: Friday, February 03, 2012 12:23 PM To: Rochelle Bruiners Subject: RE: Rochelle Bruiners - Regarding No payment Importance: High Hi Rochelle, I will send a copy of your court order through to Mr Price and request a copy of the paid up letter. With regards to the Old Mutual account, on which ITC did you check these figures? We have sent you a copy of your ITC reports when you applied for debt review, but ITC do not update their records on a monthly basis. I await your response. Thanks Elzanne 3

31 From: Rochelle Bruiners [mailto:rochelle.bruiners@totalgaz.co.za] Sent: 03 February 2012 11:35 AM To: 'Deborah Solomon' Cc: 'Elzanne' Subject: FW: Rochelle Bruiners - Regarding No payment Importance: High Good morning Ladies I am still waiting on feedback on my enquiry below. Please advise ASAP. I ve also had a look at my ITC report and have the following queries: 1) Mr Price Why is there still a R255 outstanding whilst your report says 0 2) Old Mutual Your report says R71919.12 whilest the ITC report says R 88952 This is R17000+ more than your monthly report??? Please ignore the Truworths and Autopage accounts these have been paid up already it was used by my daughter. Thanks for your assistance. Kind Regards Rochelle Bruiners Senior Buyer Tel: 021 941 4025 Fax: 086 633 4908 Cell: 083 644 0815 email: rochelle.bruiners@totalgaz.co.za LPG stands for Liquified Petroleum Gas which is energy in a bottle. It is versatile, fast, clean, powerful portable and most importantly, very safe Please do not print unless it is necessary 4

32 From: Elzanne [mailto:info@debko.co.za] Sent: Wednesday, January 18, 2012 1:15 PM To: Rochelle Bruiners Subject: RE: CANCELLATION OF DEBT REVIEW Importance: High Hi Rochelle, As per Deborah s discussion, please advise what you would like us to do and send us the relevant information in writing so that we can resolve the matter. I trust you find the above in order. Should you have any further queries, please do not hesitate to contact our office directly. Thanks Elzanne From: Rochelle Bruiners [mailto:rochelle.bruiners@totalgaz.co.za] Sent: 18 January 2012 12:42 PM To: 'Deborah Solomon' Cc: 'Elzanne' Subject: CANCELLATION OF DEBT REVIEW Good morning ladies I hereby wish to cancel my debt review with your company. I have made my own arrangements for payment of my debt and therefore I will not be making a payment to you this month. Can you please ensure that I get all my documents that I have submitted to you. I thank you for the assistance you have been given me during this time. Kind Regards Rochelle Bruiners Senior Buyer Tel: 021 941 4025 Fax: 086 633 4908 Cell: 083 644 0815 email: rochelle.bruiners@totalgaz.co.za 5

33 LPG stands for Liquified Petroleum Gas which is energy in a bottle. It is versatile, fast, clean, powerful portable and most importantly, very safe Please do not print unless it is necessary 6