20 September 2024 - Grownish Woes

What You Need to Know About Car Repossession: Protecting Your Rights and Planning Ahead car-transporter-breakdown-lorry-working-using-locked-belt-transport-other-green-car6891021934564678524

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What You Need to Know About Car Repossession: Protecting Your Rights and Planning Ahead

Staff Writer Posted on 2 weeks ago

Image by jcomp on Freepik

In today’s tough economic climate, more South Africans are struggling to meet their vehicle loan repayments. After a period of improvement, defaults on car loans have once again risen in the second quarter of 2024, with an alarming increase of 21% in first-time defaulters. As consumers grapple with rising costs, understanding the car repossession process and knowing your rights is crucial.

Defaults on Car Loans: A Growing Concern

The latest data from the Experian Consumer Default Index shows that from March 31 to June 30, 2024, the total outstanding balance on car loans increased from R505 billion to R508 billion. The amount owed by first-time defaulters shot up from R4.8 billion to R5.8 billion. This troubling trend suggests that more consumers are struggling to keep up with their repayments, raising concerns about car repossessions in the near future.

Prioritizing Essentials Over Nice-to-Haves

Howard Gabriels, lead ombud for the Credit Division at the National Financial Ombud Scheme (NFO), urges consumers to focus on essentials such as education, healthcare, and savings, instead of non-essentials like a new car. “In difficult economic conditions, consumers should reassess their budgets and consider long-term financial consequences,” Gabriels advises. This shift in financial priorities can help avoid the potential heartbreak of losing your car through repossession.

What Happens If You Default?

Under a vehicle finance agreement, your car technically remains the property of the bank until you fully repay the loan. If you miss your repayments, it can have significant consequences, including:

Credit report impact: Your default will be recorded, affecting your ability to access credit in the future.

Legal action: The bank may take legal steps to recover the debt, which could result in high legal fees.

Repossession: If the bank repossesses and sells the car at auction for less than what you owe, you will be liable for the shortfall.

Know Your Rights: What Banks Can and Cannot Do

Banks are required to follow strict procedures before they can repossess your vehicle. According to the National Credit Act, the repossession process can only start after 20 days of missed payments. The bank must first send you a Section 129 notice (letter of demand) and try to help you bring your payments up to date. Legal action is only taken if this process fails.

Importantly, the bank cannot repossess your car without a court order or your direct consent through voluntary surrender. Here’s what needs to happen for legal repossession:

1. Section 129 notice: You will receive a formal letter informing you of the default.

2. Summons: You will be served with a summons to appear in court.

3. Judgment: The court may issue a judgment declaring your car as executable.

4. Warrant of execution: A Sheriff of the Court will deliver a warrant, allowing the repossession of your car.

If the bank cannot prove it sent the Section 129 notice, the court will not grant repossession. However, this notice only needs to be sent to your registered address; it’s essential to ensure your contact details with the bank are accurate.

Voluntary Surrender: An Alternative to Legal Action

If you find yourself unable to meet your repayments, you have the option to voluntarily surrender the vehicle. This can avoid the high legal costs associated with a court-ordered repossession. However, it’s crucial that you make this decision without being pressured by the bank or a debt collection agency.

Communicate Early to Avoid Repossession

One of the most important steps you can take if you’re struggling financially is to communicate with your bank early. While the bank isn’t legally required to accept a payment arrangement, opening a dialogue might lead to a mutually beneficial solution. Waiting until the repossession process is underway can limit your options and lead to unnecessary costs.

Where to Get Help

The National Financial Ombud Scheme (NFO) is there to assist consumers who are unhappy with the outcome of their queries from credit providers or banks. If your vehicle has been repossessed and you feel your rights have been violated, you can contact the NFO’s banking division for an investigation.

For assistance, call 0860 800 900 or visit NFO’s website for more information.

Falling behind on car repayments can be stressful, but knowing your rights and understanding the repossession process is essential for protecting yourself. Prioritize financial planning and communicate with your bank to avoid the long-term consequences of default. Remember, your car may be important, but safeguarding your financial future is even more

Source: IOL News

Building Solutions and Breaking Barriers: Khensani Shirinda in the IT World image_editor_output_image898671207-1723027633489

Building Solutions and Breaking Barriers: Khensani Shirinda in the IT World

tshepisosishuba Posted on 2 weeks ago

Meet Khensani Shirinda, a seasoned IT professional with a decade of experience. With a robust educational background, holding a BTech degree in Operations Management from Tshwane University of Technology and a Bachelor of Commerce in Business Informatics from UNISA, Khensani has carved out a successful career path that blends technical expertise with exceptional stakeholder management skills. Known for her adaptability, problem-solving abilities, and a passion for delivering impactful software solutions, Khensani’s journey in the IT industry is a testament to her dedication and continuous pursuit of excellence.

Qualifications and Career Path

Academic Background

Khensani Shirinda holds a BTech degree in Operations Management and a Bachelor of Commerce in Business Informatics. These qualifications have equipped her with a robust foundation in both operational and technological aspects of business management.

Career Choice

Khensani chose her career path with a clear goal: “I wanted to work in IT without being a developer,” she explains. Her interest in IT, combined with her desire to engage with various stakeholders, directed her toward a role that leverages her strengths in problem-solving and communication.

Reflecting on Career Decisions

When asked if she would choose the same career path again, Khensani confidently affirms, “I would definitely do it all over again. I enjoy solving problems and talking to people.” Her passion for her work is evident, and her advice to her younger self emphasizes long-term commitment: “Choose something that you are willing to do for 35 years of your adult life.”

Essential Skills for the Field

In her field, both hard and soft skills are crucial. Adaptability, problem-solving, and stakeholder management are key to her daily responsibilities. “You have to be a nimble learner and that it is fast-paced,” she notes, highlighting the dynamic nature of the IT industry.

Advice for Graduates

For graduates and job seekers, Khensani offers a roadmap: “Be prepared to adapt quickly and continuously learn. Understand the technology landscape and be ready to engage with different stakeholders.” Her insights underscore the importance of versatility and continuous improvement in the IT sector.

Job Responsibilities and Industry Insights

Day-to-Day Activities

Khensani’s role involves a mix of team coordination and stakeholder management. “I run stand-ups (15-minute meetings with the scrum team), manage Jira admin, liaise with different stakeholders, and close feedback loops,” she explains. Her job requires balancing technical tasks with effective communication.

Industry Insights

One surprising aspect of her industry is the pace and the necessity for continuous learning. “An outsider wouldn’t know how fast-paced it is and the need to be a nimble learner,” Khensani remarks. Her transition from a technologically advanced banking environment to her current role also brought unexpected challenges. “The technical landscape was surprising. I was used to the technology in the bank, which is more advanced than the current company,” she recalls.

Future of the Job

With the rise of AI, Khensani believes her job will evolve but remain relevant. The adaptability and problem-solving skills she has honed will continue to be valuable in an AI-augmented workplace.

Challenges and Rewards

Challenges

One of the most challenging aspects of Khensani’s job is the need for rapid adaptation. “I have to adapt to changes quickly, solve problems, and support the teams,” she says. This constant demand for flexibility can be tough but also keeps her role engaging.

Rewards

The most rewarding part of her job is seeing the tangible impact of her work. “Seeing the software we build live in production and adding value to the business” brings her a great sense of accomplishment. Her goal for the year is to deliver a particularly challenging project, which has tested her team’s resilience and problem-solving abilities.

Career Setbacks

Reflecting on her career, Khensani acknowledges that setbacks have often turned into advantages. The challenges she faced in adapting to different technological environments have enhanced her skills and resilience, preparing her for future roles.

Personal and Financial Reflections

Childhood Dreams

Khensani’s 10-year-old self would be surprised by her current role. “I used to be so shy. My work has put me out there, as I engage with everyone from developers to business owners,” she shares. Her journey from a shy child to a confident professional engaging with diverse stakeholders is a testament to her growth.

Dreams Beyond Work

If money were no object, Khensani would indulge her passion for travel. “I would be a globe trotter. I enjoy travelling. If it was possible, I would get paid for it,” she says with a smile.

Financial lessons every kid should know

Khensani’s financial advice for the younger generation is rooted in practical wisdom:

Understand the “why” behind financial decisions.
Avoid trying to keep up with others who may be living beyond their means.
Recognize the high cost of unsecured lending.
Save for both long-term and short-term goals.

How the SARB Rate Cut Affects South African Consumers and Businesses Close-up of woman entering pin while using ATM machine.

How the SARB Rate Cut Affects South African Consumers and Businesses

Staff Writer Posted on 2 weeks ago

Image by Drazen Zigic on Freepik

On the heels of a historic high in interest rates, the South African Reserve Bank (SARB) has announced a 25 basis point (BPS) cut in the repo rate, bringing it down to 8%. This long-awaited move follows a steady decline in inflation, marking a significant turning point for both consumers and businesses in South Africa. But what does this rate cut mean for the average South African, and how will businesses feel the impact?

Relief for Consumers

For the first time since 2021, inflation has dipped below the SARB’s 4.5% target, signaling improved economic conditions. The reduced repo rate will bring down the prime lending rate to 11.5%, offering relief to consumers who rely on credit. This means lower interest payments on mortgages, vehicle finance, and other loans, providing a much-needed financial breather, especially in a time when many households are grappling with high living costs.

For those paying off home loans, this 0.25% drop in the repo rate translates to slightly lower monthly repayments. While this may not seem like a significant change, the cumulative impact over time can lead to substantial savings for homeowners, particularly as inflation remains contained.

Business Confidence Boosted

The rate cut also bodes well for businesses, particularly small and medium enterprises (SMEs) that rely on financing for growth. The lower interest rates will reduce borrowing costs, freeing up capital for investment in new ventures, equipment, or expansion. With inflation under control, businesses can plan more confidently for the future without the looming threat of rapidly increasing operational costs.

Additionally, SARB Governor Lesetja Kganyago noted improvements in electricity stability, suggesting that businesses can expect a more conducive operating environment in the coming months. This stability, combined with the rate cut, could pave the way for enhanced growth prospects, especially in industries reliant on consistent power supply.

A Cautious Approach Amid Global Changes

While South Africa benefits from this rate cut, it is important to note the broader global economic context. Major central banks like the US Federal Reserve and the European Central Bank have also cut rates recently, contributing to global financial stability. However, Kganyago warned that despite these positive signals, the path forward is not without risk. Global financial markets remain volatile, and external shocks could still impact the local economy.

As we look toward the second half of the year, the SARB is cautiously optimistic about economic growth, forecasting an increase in GDP driven by improved electricity supply and increased consumer spending from withdrawals under the Two-Pot retirement system.

Looking Ahead: Opportunities and Challenges

While this rate cut brings immediate financial relief, South Africans should remain mindful of their financial habits. It presents an opportunity for consumers to re-evaluate their spending, save more, and pay off debt as interest rates drop. For businesses, the time is ripe for strategic investments, with lower borrowing costs offering room for expansion.

However, as Kganyago emphasized, uncertainties in the global and local economic landscapes mean that this is not the time for complacency. Both consumers and businesses must remain adaptable, ready to weather any potential shocks while taking full advantage of the more favorable economic conditions.

Source: IOL News