1. THE ASSOCIATION OF DEBT RECOVERY AGENTS NPC
The credit industry’s last resort
Marius Jonker

2. Who is ADRA
ADRA membership is the last resort in recovering your delinquent debt. And The last safety net where all compliance disputes come to a head.

3. Non Profit Professional Association Represent +70% of all registered “debt collectors” (+ 200 companies) All prominent book-buyers 35 Law Firms specialising in debt collection Legislative and regulatory recognised industry representative Represent member interest across the debt collection spectrum

4. Statutory Code of Conduct
Minimum standard of ethics and compliance
Focused on consumer protection
ADRA Code of Conduct
Highest standard of ethics, compliance and best practises
Endorse the statutory Code
Focus on the debt collector // credit provider relationship
ADRA membership stated as tender/procurement requirement

5. Industry Challenges Court enforced debt collection
Stellenbosch Legal Aid Clinic // Minister of Justice & Others CC
(Constitutional invalidity of provisions allowing clerks to grant EAO’s)
Objective of Joining and CC Appeal
Avert credit industry risk of retrospective remedies.
Systemic industry risk
Not a micro-lending issue – a credit industry threat
Not an active EAO issue – Desai J order backdated to 10 Dec 1994.
Conservative Industry Exposure
R 93bn Capital + Interest + Legal Costs
Constitutional Court Judgement – No retrospective effect

6. Industry Challenges Courts of Law Amendment Bill
Progress made
Onus of proof
3 month principle
Sheriff services reduced
Cost orders etc.
Process lends itself to
Substantial delay in justice
Physical court appearances
Cost ineffective process
Conflict with other legislation, (i.e. 25% cap)

7. Industry Challenges Debt Collectors Act Amendment Bill
Inclusion of attorneys as “debt collectors” Revision, limitation and capping of tariffs

8. Industry Challenges Court enforced debt collection
More onerous onus of proof Protracted process Increased turn-around times Reduced success rates Increased cost Reduced ability to recover costs

9. Industry Challenges Payment streams under threat
NAEDO
Disputes and rejections:
driven by consumer cash flow management
exacerbated by appearance of electronic dispute channels
Authenticated Collections
Mobile connectivity
Accuracy of bank mobile data = 26% (9% to 71%)
Absence of an end to end NF2F real-time AC solution
Why will a delinquent evasive consumer jump through the AC authentication hoops?

10. Industry Challenges Consumer data
Credit Bureau Submission
NCR and SACRRA desirous of debt collectors submitting consumer credit profile data.
POPIA Collaboration
Constant flow of protected personal information.
Credit provider – debt collector
Debt collector – credit provider
ADRA intent on preparing Debt Collection Industry Code
Collaboration and synchronisation required with credit industry

11. CONCLUSION THEN WHY ARE WE NOT SPEAKING TO ONE ANOTHER?
Demanding legislative, regulatory compliance environment
ADRA and its membership is a strategic partner to the credit industry
Last resort for debt enforcement and amicable dispute management.
Multitude of challenges of mutual critical importance
THEN WHY ARE WE NOT SPEAKING TO ONE ANOTHER?

12. THE END
Marius Jonker