The Debt Collectors Amendment Bill 2016 Charges and interest Peter Rafferty Chief Executive Officer FutureSoft

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft “What one does is what counts. Not what one had the intention of doing.” ― Pablo Picasso

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft Examples of poorly drafted contracts Serviettes Cigarette packets

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft Examples of poorly drafted legislation National Credit Act

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft Examples of poorly executed ideas Credit Amnesty (Chapter I and II)

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft Examples of intentional over-regulation Emolument Attachment Orders Authenticated Debit Orders

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft “The intention behind the Debt Collectors Amendment Bill was OK … but the execution … nah … not so good” ― Pablo Picasso

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft Improper conduct by debt collectors 15(1) A debt collector may be found guilty of improper conduct if he... (g) charges collection costs, and initiation fee, service fees, default administration charges or other charges which exceed the unpaid balance of the principle debt at the time of default

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft Who knows how the common law In Duplum Rule works?

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft Common Law In Duplum Rule This common law rule provides that interest on a debt will cease to run where the total amount of arrear interest has accrued to an amount equal to the outstanding principal debt Can accrue again Only interest Common Law In Duplum Rule

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft Section 103(5) of the National Credit Act Despite any provision of the common law or a credit agreement to the contrary, the amounts contemplated in section 101(1)(b) to (g) that accrue during the time that a consumer is in default under the credit agreement may not, in aggregate, exceed the unpaid balance of the principal debt under that credit agreement as at the time that the default occurs National Credit Act

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft Section 101(1)(b) to (g) initiation fee, service fee, interest, cost of any credit insurance, default administration charges, collection costs Can never accrue again Not only interest

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft 15(1) A debt collector may be found guilty of improper conduct if he... (g) charges collection costs, and initiation fee, service fees, default administration charges or other charges which exceed the unpaid balance of the principle debt at the time of default Where is the reference to ‘interest’? Debt Collectors Amendment Bill

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft Not all debt is subject to the National Credit Act

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft But all debt will be subject to the Debt Collectors Amendment Bill

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft The Debt Collectors Amendment Bill (once amended) will prohibit the application of the Common Law In Duplum Rule

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft Definition for debt and collection Clarify fee structures Remove ambiguity My other personal issues

The Debt Collectors Amendment Bill 2016 Peter Rafferty, Chief Executive Officer, FutureSoft Thank you