Objective,simplifiedfinancialsolutions

We bring positive changeto the financial servicesindustry by doing greatthings for consumers

Broker vs Advisor

BE PROTECTEDLoan sharks and corrupt collectors are stealing from your employees by adding inflated fees and interest to loans and garnishee deductions. We protect your employees by auditing these loans and orders, ensuring we hold corrupt providers accountable. We’ve put millions back in the pockets of employees and we’d love to do the same for your employees:

• R6 million refunded to Sappi employees• R3 million saved for Lonmin employees• R4 million saved for Department of Defence employees

5

Stop the abuse by lenders and collectors

EAO Process & Irregularities

Stopping EAO

Monthly Fees

Payment Plan

Judgment and EAO

Section57 & 58

S129Letter of Demand

Loan Agreement

1. Loan amount 2. Fees and interest rate3. Reckless lending (affordability checks)4. NCA Compliance5. Registered lender6. Loan splitting

Consumers RightsNotice

1. Validity (forged)2. Date signed3. Amount

1. Validity (court file)2. Judgment debt vs loan3. Installment4. Interest rate5. Fees

1. Collection costs2. In duplum (S103)3. Interest rate4. S65J (10) Commission5. Legal fees

Rule 81 of the Law SocietyMagistrate Court tariff

1.Remove the administrative burden• Capture & administer all orders – EAO’s, administration orders and

maintenance orders• All administrative functions are performed by Summit. The employer

only receives the order and scan it onto our system

2.Ensure that only valid, accurate and affordable orders are deducted

• Audit team with proven track record• Audit orders, contracts and statements behind the orders• Results in savings and refunds for employees

3.Ensure improved levels of communication• Multi lingual call centre & email access to vendors and employees• Regular reporting to management

EAO Process Objectives

Systems: Payroll Deductions

• Typical rules:– Affordability– Interest calculation– Bank account verification– Balance management

Insurance

Medical

Finance

Unions

Legal

Intelligent Control

PERSAL

PERSOL

Source

EAO Process Flow

EAO RECEIPTING

CHALLENGE

SCHEDULES

PAYMENT via ACB

AMENDED EAO

COURTCONSENT

E A O

SCRUTINISE

RECON

PAYROLL

1

2

3

4

5

6

INTERFACE

OUTPUT

7

8

9

Name of credit providerIs there a court stampIs there a court numberAmount of the orderAmount of the instalmentInterest rateFees

Repayment Plan

Web Upload of Documents

Steyn Attorneys

Irregularity

Legal fees 10 times capital

Action

Magistrate Court Application

Result

Stop payment notice received

Fin Africa EAO

Irregularity

Inflated balance on certificate

Action

Challenge letter

Fin Africa Statement

Result

“Correction”

Good Times Finance EAO

Irregularity

Costs equal to judgment amount

Action

Payment stopped

Good Times Finance Letter

Result

Costs written off

Fraud

Irregularity

Apparent fraud

Result

Pending

Action

Payment stopped

1.Bring banking solutions to the payroll • Build a community of service providers that is under the employers

control• Ensure contracted automated rules and real time affordability checks

to protect employees• Service providers must pass on savings from payroll collections to

the employee

2.Show bite early on• Go to court • Question every deduction and repayment plan• Get experts

3.Shop around• Retirement funds, life insurance, funeral cover, cellular contracts,

credit and similar group scheme solutions will reduce prices for payroll deductions

Conclusion

5% Commission

Theory Practice

Employee Creditor

Employer/Summit

R100R100 Invoice

R5 plus VAT

Employee Account

Opening balance R1000

Credit (R100)

Closing balance R900

Employee Creditor

Employer/Summit

R100 R95

Employee Account

Opening balance R1000

Credit (R95)

Journal credit (R5)

Closing balance 900