O Based on the guidelines given in the Consumer Credit Act 1999, the Council offers Debt Management Advisory Services. O Under this programme, the Council can assist you with: O Credit advice O Help you prepare a Budget O Facilitate a dialogue between you and your credit-provider if need be O Assist you with a account restructure should you be in financial hardships

O The Consumer Credit Act 1999 provides some protection to consumers who face hardship due to unforeseen circumstances and from the credit provider who repossesses the goods as a result of non-payment of instalments. O If the hirer is ill, unemployed or has any other reasonable cause not to meet the obligations under the contract, he or she can apply to the credit provider for the following methods of restructuring his/her account: O Extending the period of contract and reducing the amount of payment O Postponing for a specified period the date on which payment is due. O Extending the period of contract and postponing for a specified period the date of payment. Section 66 - Consumer Credit Act 1999

O Ms. Loata is a widow who following the passing away of her husband found a place to stay with her fellow church members. She also depended on them to cater for her financial needs. O Hardship: O Being a widow, Ms. Loata’s only source of income was her superannuation pension of $ a month. However, she also had a personal loan account with a Banker B where her normal monthly repayment was $ Her monthly repayment was made directly from her savings account where her superannuation fund was deposited into. O After her loan deduction, Ms. Loata was only left with an amount of $32.00 a month. This was not enough to cater for her financial needs. O Solution: O Her account was restructured to $ a month. REDUCING THE AMOUNT OF EACH PAYMENT Loata’s Story :

O Mr Nelly a business man, inherited property from this father. However he took a home loan of $171, with monthly repayments of $1,599. Hardship: Unfortunately, because his business was not performing well he was unable to keep up with repayments. His property was mortgaged and advertised three times in the local dailies. His arrears accumulated to $14, The Bank gave him 14 days to redeem and clear off the arrears. O Solution: The Council intervened and mediated for an account restructure, however since he had defaulted severely and the accumulated arrears was a substantial amount, the bank refused to facilitate a restructure. Furthermore, the Council suggested that the complainant be allowed to clear off the arrears and Mr. Nelly proposed to pay $17,000 to clear off his arrears. O Mr. Nelly was able to save his home from being mortgaged especially as he had invested his hard earned money. REDUCING THE AMOUNT OF EACH PAYMENT Mortgage Home Saved – Mr. Nelly’s Story

POSTPONING THE DATE OF PAYMENT FOR A CERTAIN PERIOD O Mr. Jack works for a private company and gets paid every 15 th on 30 th of each month. Hardship: O With the pay he receives on the 30 th, he buys his groceries, pays her bills and rent, etc. O But his repayment for her credit account is due on the 1 st of each month. Solution: O The date on which his monthly repayment was moved to the 16 th of each month. Jack’s Story :

REPAYMENT HOLIDAY O Kolinisau had credit accounts with several credit providers. O 1 credit card account with Creditor X, O 1 personal loan account with Creditor Y, and O 5 accounts with Creditor Z. Hardship: O Kolinisau had resigned from her employment in October Following this, she had begun facing severe financial hardship as she did not derive any income to meet her obligations as a debtor. O Because her husband was fully dedicated to a religious group, he also did not have a source of income. Kolinisau also had 3 children below the age of 4 years. The family had become completely reliant on family members and friends to meet their livelihood. Sharon’s Story :

REPAYMENT HOLIDAY O As Credit Provider Z was now threatening to repossess the items and take legal action, Kolinisau could no longer ignore the situation she was in. She needed time to seek employment and continue with her repayments in order to save her items from being repossessed. O Solution:  Creditor X allowed a 3 month repayment holiday,  Creditor Y allowed to freeze the account until she finds employment, and  Creditor Z allowed deferring recovery actions provided that Kolinisau makes some repayment on the lowest balance account. This amount could be as low as $5.00 a month. Sharon’s Story :

All documents relating to your income O Wages/salary slip O Receipts from rental of property, etc. O Any other evidences of Income O All documents relating to your expenses O All Utility Bills – FEA, WAF and Internet O Loan/Mortgage documents along with Bank statements O Example: hire purchase and loan agreements, account statements of respective accounts, O Default and Demand notices issued by credit provider

O All details mentioned by you will be kept to the strictest of confidentiality O We will not give out any your information to a third party WITHOUT YOUR CONSENT unless or until required by law.

O LEND YOU MONEY TO PAY-OFF YOUR DEBTS O PAY YOUR BILLS FOR YOU O BE A GUARANTOR O TAKE RESPONSIBILITY TO ENSURE ALL YOUR DEBTS ARE PAID ON TIME

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