Freedom Day

It is impossible to reflect back on 27 April 1994 without reminiscing about the legend that is former President Nelson Mandela.

Read Mandela`s statement after voting in South Africa`s First Democratic Election here: http://www.anc.org.za/show.php?id=3657

A few of our all-time favourite quotes:

“Many people have been sceptical of our capacity to realise the ideal of a rainbow nation. It is true that South Africa was often brought to the brink of destruction because of differences. But let us re-affirm this one thing here today: it is not our diversity which divides us, it is not our ethnicity, or religion or culture that divides us. Since we have achieved our freedom, there can only be one division amongst us: between those who cherish democracy and those who do not!” Nelson Mandela, speech on receiving The Freedom of Durban, Durban, South Africa, 16 April 1999

“The very fact that racism degrades both the perpetrator and the victim commands that, if we are true to our commitment to protect human dignity, we fight on until victory is achieved.” Nelson Mandela, address to The United Nations General Assembly, New York, USA, 3 October 1994

“… we know that peace is the most powerful weapon that any community or nation can have for development. As we rebuild our country, we should remain vigilant against the enemies of development and democracy, even if they come from within our own ranks. Violence will not bring us closer to our objectives. All of us should ask ourselves the question: Have I done everything in my power to bring about lasting peace and prosperity in my city and my country?” Nelson Mandela, speech on receiving The Freedom of Durban, Durban, South Africa, 16 April 1999

We wish you a cheerful Freedom Day 2016.

Yours faithfully,

Legal Hero.

Assistance with your home loan application

Exciting new benefit announcement!

All Legal Hero policyholders now enjoy assistance with their home loan/ bond application process. Contact 0861 22 99 22 (option 4) or e-mail bond@legalhero.co.za. We want to see you and your family thrive.

When it comes to property (movable and immovable), your Legal Hero benefits include purchase and sale agreements, advice on agreements before you sign, consumer protection, lease agreements, bond application assistance and discount on transfer and registration fees.

Keeping you informed: Have you heard of FLISP?

What is it? The Finance Linked Individual Subsidy Program (FLISP) was developed by the Department of Human Settlements and is a form of subsidy.

What does it do? FLISP helps successful applicants to purchase his/ her first property in a formal town by way of a once-off subsidy in the region of R10 000 - R87 000.

Do I qualify? If you are a first time home buyer, a South African citizen over 18 years, have never benefited from a Government Housing Subsidy Scheme (such as an RDP house, for example) and earn between R3 501 and R15 000 per month, you are eligible to apply. Your potential FLISP subsidy depends on your household's combined monthly income.

Contact details: NHFC 0860 011 011 or flisp@nhf.co.za. Visit www.nhfc.co.za for more information.

Rid yourself of financial woes

Outstanding debt is easier to sweep under the carpet than to deal with. Initially, you might find some solace in pretending, however, as time progresses, that bulge under the carpet will eventually become stress bulges that run down your neck and keep you up at night. Eventually the sound of a phone ringing will bring about anxiety, as it could possibly be one of your creditors following up or threatening to take legal action against you. That’s not even the worst of it all. The worst phase to enter is the one where you simply lose hope.

“Hope is like the sun, which, as we journey toward it, casts the shadow of our burden behind us.” Samuel Smiles

If you are having serious trouble repaying your debts and if you are ready to embark on the road to financial freedom, we at Legal Hero have the perfect solution: debt review. We do not offer this service personally, but have truly been inspired by Karin Augustyn from Cape Debt Clinic and her team to whom we refer all our financially distressed enquiries. Karin and her team’s compassion is beyond anything we have ever experienced in the overpopulated debt review industry. *

Debt review vs being placed under administration?

Debt review is often preferred to being placed under administration. Why?

Debt review offers greater consumer protection as the fees to the debt counsellor are strictly regulated by the National Credit Regulator. A debt counsellor will assess your state of indebtedness, offer sound financial advice and facilitate a debt rearrangement with your creditors. Should your creditors not agree to the debt rearrangement one may apply to court for an order confirming same. The debt counsellor will then manage all your payments from a central distribution agency on a monthly basis on your behalf.

Administration is more expensive and the fees to the administrator managing the payments are higher. A court order is required and the debt may not total more than R50 000. There have been many reports of irregularities in that the fees to the administrator are not properly regulated and there is no central distribution agency involved. In most cases the distributions to credit providers only occur every three months and are handled by the administrators themselves.

How long does debt review take?

Nothing is a short-term fix. You will need to commit. The goal is to get you debt-free within a period of 3-5 years. Depending on your circumstances, this could happen much sooner. For a detailed timeline elaborating on what happens from day 1 – the day of your financial freedom, visit this link:

http://www.capedebtclinic.co.za/Debt_Review_timeline.html

Visit this link for answers to other frequently asked questions regarding debt review:

http://www.capedebtclinic.co.za/Debt_Review_FAQ.html

Contact Cape Debt Clinic (not limited to the Western Cape) on 021 828 2658 for a free first consultation to assess your needs.



* Please note that Legal Hero does not receive commission/ referral fees for referrals to Cape Debt Clinic.

How do I clear listings from my credit report?

Here at Head Office we all do some credit ‘spring cleaning’ right after the annual budget speech. Everybody requests a copy of his/ her credit record from TransUnion/ Experian and then scrutinizes the document in order to avoid any nasty surprises. 

Did you know that potential creditors are obliged to check your credit record for any listings prior to approving your loan? A listing could then lead to the rejection of your application.

Ranked from least to most serious, there is a chance that you might spot one or more of the following listings on your credit record: payment profile information, adverse information, judgments and notices.

Payment Profile Information:

What is it? This listing changes every month, dependent on whether or not you paid your clothing/ other accounts. When you skip a payment, this gets listed on your credit record.

How do I remove it? There is nothing you can do to remove this type of listing.

Will it affect my loan application? It is definitely something your potential creditor will take into account when considering your application. However, in most cases you will be granted credit.

Adverse Information:

What is it? After skipping a few of the abovementioned payments or not paying on time, your creditor will notify the credit bureau and have you tagged as a ‘slow payer,’ ‘default,’ ‘write off,’ etc.

How do I remove it? The only way to remove this type of listing is to write to your creditor with reasons as to why your account was in arrears AND make payment to get your account up to date. Examples of reasons include hospitalization or retrenchment – please remember to attach proof of payment as well as proof of your reason. It is then up to your creditor to decide whether or not it will write to the bureau to remove the listing.

Will it affect my loan application? Although you will be granted credit in most cases, it may come at a higher cost to you.

Impact of the Removal of Adverse Consumer Information and Information Relating to Paid Up Judgements Regulations, 2014? Some data on your credit record (adverse information reflecting on 1 April 2014) was ordered to be removed. This does not mean that you no longer owe the outstanding amounts to your creditor. What is does mean is that future creditors will no longer see old adverse information data as available on 1 April 2014 when considering your credit application.

Judgements:

What is it? After skipping many payments, ignoring calls from your creditor, receiving letters of demand, summonses, your creditor will apply to court to confirm the amount owing plus interest, legal fees, etc.

Whereas a debt prescribes (expires) within three years since the date of your last payment or acknowledgement of the debt, a court order confirming a debt only prescribes after thirty years. This means your creditor has thirty years to enforce the debt.

For more information on judgements and emolument attachment orders (garnishees), please visit this link: http://www.legalherolearn.blogspot.co.za/2015/07/emolument-attachment-orders-in-south.html

How do I remove it? Previously you had to:

i. Pay the debt in full;

ii. Obtain a confirmation letter from the creditor;

iii. Apply to the same court for the rescission of the judgement. This was a costly exercise;

iv. Obtain a copy of the court order confirming the rescission;

v. Send the court order confirming the rescission to the credit bureau and request the judgement’s removal from your credit record.

Effective 1 June 2014, the creditor has an obligation to send confirmation of a paid up debt to the credit bureaus within 7 days. The bureaus (Transunion/ Experian) will then remove the listing within 7 days. You may also contact the bureau and submit the confirmation letter to arrange the removal if you wish to do so.

Will it affect my loan application? Yes. Having a judgment against your name will most likely lead to the rejection of your credit application.

Notices:

What is it? This is the most serious type and happens after you have been sequestrated or placed under administration.

How is it removed? You need to apply to court.

Will it affect my loan application? Yes. Creditors will not grant you credit and might even be held liable for acting recklessly should they do so.



We hope you found this post helpful. If you are a Legal Hero Policyholder, kindly contact our offices for assistance with your credit record.

Five ways to show off your #smartheart

"Love is composed of a single soul inhabiting two bodies." Aristotle 

This may be an extremely unromantic thought, but what if things do not work out and the two bodies decide to go their separate ways? 

Without going into too much detail and adding that some loves are wonderful, definitely add to who you are as a person, teach you many lessons, but are not meant to last forever… let’s rather stick to what we know: the law and how to protect your best interests. 

1. If marriage is not your thing: 

Some people call marriage old fashioned. The best advice in this case is to draw up a Domestic Partnership Agreement. This is a contract used by heterosexual as well as same sex couples in an attempt to set out the material rights and obligations of their long term relationship. 

This contract furthermore recognizes that both parties contributed to the household in some or other way and should not walk away empty handed, regardless of the fact that everything might be in one partner’s name. This includes, but is not limited to, arrangements concerning the property, pets, furniture items purchased together, etc. 

Remember that your cohabitation is not expressly legally recognized without a Domestic Partnership Agreement/ valid Marriage (heterosexual couples)/ Civil Union (heterosexual or same sex couples). Depending on the amount of years spent together, amongst others, you could try argue the existence of an implied Partnership in Court, but this is very difficult to prove. 

Our legislators are in the process of addressing the abovementioned inequalities (unfortunately statistics show that usually women with children are left out in the cold). However, the Domestic Partnership Bill (draft law) is dragging its feet. 

2. If you are planning to get married: 

First things first, consider drawing up an Ante-Nuptial Agreement as soon as possible. This is a contract that sets out your marriage’s matrimonial property regime/ financial arrangement. 

Without it you are married IN community of property by default. With it you may be married OUT of community of property with the accrual system or OUT of community of property WITHOUT the accrual system. 

In community of property means that everything your spouse owes and owns also belong to you (and vice versa). Even that property you bought before you got married. Even the debt you collected before or after your marriage. Out of community of property with the accrual means that you may share everything you gained after your marriage. Out of community of property without the accrual means that you do not share a joint/shared/ common estate. 

3. If you are already married and considering a divorce: 

When it comes to divorce, the less traumatic and a beneficial solution to all parties by far is an Unopposed Divorce. Especially if there are children involved.

An Unopposed Divorce means that both parties agree on what is to happen with the house, the bond and the children’s visitation rights (every second weekend/ second birthday/ holidays), etc. Arrangements are then mutually decided upon and put together in a Settlement Agreement before a legal professional applies to Court to confirm the divorce. 

An Opposed Divorce means that the parties do not agree and need to battle it out in a lengthy Court case subject to heavy delays. 

4. Regardless of the surrounding circumstances, draw up a valid Will. 

Are your affairs in order? What happens in the most unfortunate event that you pass on tomorrow? 

DIY Wills are dangerous as they could be declared invalid. If you have no other option, please try to avoid the mistake of having a beneficiary also witness your Will. Your beneficiary could be disqualified from inheriting in terms of your Will if you have also asked them to witness your Will. You will need to find two other competent witnesses above the age of 14 years. 

A Will without a date is not necessarily invalid, but a date makes it easier to interpret your wishes if you have more than one Will. Remember that a new Will does not necessarily revoke previous Will/s. Wills are read in conjunction with one another as far as possible, unless you explicitly state ‘this Will revokes all previous Wills …” 

5. Save money by choosing Legal Hero for Ante-Nuptial Agreements, Child Maintenance Applications, Opposed and Unopposed Divorce, drawing up of a valid Will and many more. 

We cannot protect you from heartbreak, but we can help ensure that your legal transition from partnered to single is as smooth as possible. 

By choosing Legal Hero you will pay a fixed and affordable monthly premium that offers cover against future legal heartaches of up to R200 000 per annum. Legal advice, out of Court settlement and our contract benefit services are handled in-house whilst litigation matters are referred to our national panel of trusted attorneys. 

Legal Hero is an authorized financial services provider as underwritten by Guardrisk Insurance Company Limited. Terms and conditions apply. Mail join@legalhero.co.za or call us on 0861 22 99 22 (select option 1). 

#Arrest101

An arrest often happens when you least expect it. Sometimes, in less serious cases, you are granted Police Bail. This is when you may leave the Police Station’s holding cell, go home and then return for the Court appearance.

However, sometimes what is required is a formal bail application in Court. This is when you need to remain in the holding cell and wait for your Court appearance (must happen within 48 Court hours).

Just this morning one of our Policyholders appeared in Court following his arrest on Sunday (yesterday). The Legal Hero Policyholder luckily remembered to contact our 24/7 bail line. This morning his Attorney - paid for by Legal Hero at no extra charge/ no excess fee to him - attended to his formal bail hearing in Court and managed to have all charges against our Policyholder withdrawn by virtue of mediation entered into with the State.

Depending on certain factors such as the type of charge involved (the seriousness thereof) and whether the accused has committed any previous convictions, the State is inclined to extend a “helping hand” to an accused who has strayed by referring criminal charges for mediation. This is in an attempt to resolve the matter in an amicable manner between the accused and complainant. However, should the accused try to misuse or make a mockery of the State’s kindness, mediation will not be offered and the case will run its normal course.

Have a great day!

Legal Hero 

www.legalhero.co.za

Equal protection of the law?

The only problem is that the law is very expensive. People earning less than R5500 per month may have access to free Legal Aid. The rest may need to fork out hundreds of thousands for legal help. Unless you have legal cost insurance = payment of an affordable and fixed monthly premium that pays out and covers you in your future moment of need. 

Section 9 of the Constitution of the Republic of South Africa, 1996 further reads, 

‘Everyone is equal before the law and has the right to equal protection and benefit of the law.’ 

The truth is that everyone is not always equal before the law if you cannot make use of the law (when you do not know how to enforce your rights, do not qualify for free legal aid and cannot afford the assistance of a private legal professional). 

Legal cost insurance is not a new concept and started out in the United Kingdom and Canada. Often referred to as ‘pre-paid legal services,’ protection is secured for future legal and litigation costs as per the terms and conditions of the relevant policy. Different to life insurance, legal cost insurance is a short-term insurance product. It is vigorously regulated by many acts with a few more developments on the horizon. Treating customers fairly is paramount. 

Legal cost insurance also has its own Ombud. The Office of the Ombudsman for Short-Term Insurance acts as a mediator/ arbitrator to assist consumers with complaints concerning service or a litigation rejection received in contrast with the terms and conditions of the policy. The service is free, however, only available once the complaint has been lodged with the legal cost insurance company first. If the complaint remains unresolved, same may be sent to the Ombud: P.O. BOX 32334, Braamfontein, 2017. Tel: (0860) 726 890 / (011) 726 8900 | Fax: (011) 726 5501. Email: info@osti.co.za.

Knowledge is power. 

Yours truly, Legal Hero 

www.legalhero.co.za

Exemption from Payment of School Fees

Note: a school can take legal action against both the custodian (person with whom the child resides) as well as the non-custodian parent. The school can, however, only take legal action against the parent after the exemption criteria has been applied and denied. Remember that the parent may appeal to the Department of Education. 

Wishing you a great day, 

Legal Hero

www.legalhero.co.za 

PS: Click here for the link to the various provincial divisions of the Department of Education. 

The Curious Case of Prince v President

Prince dreamed about becoming an Attorney. The Law Society, however, refused to register Prince as an Attorney due to his two previous convictions on the count of dagga possession. 

Prince took the Law Society to Court and based his arguments on the following: infringement of his right to freedom of religion as a Rastafarian, unfair discrimination as part of a minority group in South Africa, the right to choose his trade and occupation freely and infringement of his right to human dignity. 

The Constitutional Court (decided on 12 December 2000):

• Yes, the Constitutional Court agreed that the Drugs and Drug Trafficking Act of 1992 DOES in fact infringe Prince’s constitutional right to freedom of religion;
• This limitation is, however, justified. Constitutional rights are not absolute and can be limited in terms of section 36 of our Constitution “only in terms of law of general application to the extent that the limitation is reasonable and justifiable in an open and democratic society based on human dignity, equality and freedom, taking into account all relevant factors, including— (a) the nature of the right; (b) the importance of the purpose of the limitation; (c) the nature and extent of the limitation; (d) the relation between the limitation and its purpose; and (e) less restrictive means to achieve the purpose.”
• The State has an important obligation to combat the use of and trade of drugs and has signed international agreements to do so. There is furthermore little information available on the use of dagga and South Africa’s Rastafarian community to justify a religious exemption.

Did you know? 

• · Cannabis/ marijuana/ dagga has been in use for over 8 millennia;
• · R300 million: the cost in Gauteng alone to arrest, prosecute and keep marijuana offenders in jail - according to research conducted by the Anti-Drug Alliance NGO; 
• · Some argue that there is very little evidence to support that Marijuana is harmful or addictive whilst others argue that all medicines and even herbs have side effects;
• · USA: about 23 States have legalized medical marijuana, and others are in the process of following suit;
• · South Africa: the Medical Innovation Bill (draft law to legalize marijuana in South Africa for medical, economical and industrial use), was introduced in Parliament in February 2014. It could take a number of years for the bill to be signed and become law. Some argue that the Bill is just a copy and paste version and does not cater for South Africa’s unique circumstances. 

Unfortunately Prince’s dream to become an Attorney did not materialize. One must note that the Medical Innovation Bill, even if it were law, would not have helped Prince. Reason: Prince used marijuana for religious/ spiritual purposes and not for medical reasons. In this case the Constitutional Court, however, once again acknowledges our right to freedom of religion and quotes a well-known passage from the case Christian v Minister of Education 2000 (10) BCLR 1051 (CC) para 36: 

Yours Faithfully, 

Legal Hero 

www.legalhero.co.za