BusinessDay – Debt advisers take taxi owners for ride
LITERALLY “thousands” of taxi operators had been involved in “clear abuse” of the debt-review process as laid out under the National Credit Act, using the process as a payment holiday, senior WesBank executives said this week.
This would indicate the extent to which banks initially struggled to implement the act when it was introduced in 2007.
Chris de Kock, head of sales and marketing at WesBank, said taxi owners qualified for the debt-review process as “sole entities”, but this was “quite ridiculous”. He said thousands of taxi owners had sought debt relief under the scheme.
Under the National Credit Act indebted individuals struggling with repayments are allowed to approach their creditors through a debt counsellor with a proposal for reduced repayments or extended terms. This “locks” the account for 60 days while the creditor studies the proposal.
“It was clearly just abuse. We saw a lot of it. You could see the debt counsellors at the taxi ranks, where they would approach drivers and try to persuade them to get into the process. The way we saw it, if they were in genuine difficulties then they should have closed their businesses,” Mr de Kock said.
Imtiaz Cassim, head of taxi finance at WesBank, confirmed the extent of the problem. “Debt counsellors saw an opportunity to make some money. They lured taxi operators, who are often semiliterate and therefore very vulnerable, into a process they didn’t understand,” Mr Cassim said yesterday.
Strange Random Taxi Quote:
- The New York Times Editorial Page Gets Poetic About Taxis Which are Now Worth More Than Gold (reason.com)
- Scheme makes Newcastle taxis safer (autonetinsurance.co.uk)
- The Plans For The Most Important Plans For Debt Payment (seoanimesh07.wordpress.com)
- Greek taxi drivers block Athens airport, harbor (seattletimes.nwsource.com)
- Dead Stuffed Monkey Tops Acronis Poll of Strange Items Left in European Taxis (prweb.com)
- Fires lead to black cab recall (autonetinsurance.co.uk)
- A taxi ride in Havana: Bouncing through history (repeatingislands.com)
Posted on September 3, 2011, in Article and tagged Business, Creditor, Debt, Debt consolidation, Financial Planning, Financial Services, George Burns, Taxicab, United States, WesBank. Bookmark the permalink. Leave a comment.