Solving_A_Case_By_BASA_Training_Rules

last updated September 2010 - you can also download this info in all the posts below in document format from this link  =  http://afyb.co.cc   , well do that after you READ IT first ! :))

From the NCR Form 42 (Quaterly Report to be submitted by Debt

Counsellor to NCR), we see the following "debt types" with

their short codes (this table is ASLO in the BASA Training manual)

DEBT TYPE	CODE	MAX TERM FROM ORIG. DATE	NEW TERM MUST NEVER EXCEED
Micro Lender	ML	Orig Term x 3
Bank - Credit Card	BC	60 months	60  months
Bank - Bond	BB	360 months	240  months
Bank - Overdraft	BO	60 months	60  months
Bank - Vehicle	BV	Orig Term x 1.5	84  months
Retailer - Furniture	RF	60 months	60  months
Retailer - Clothing	RC	60 months	60  months
Retailer - Other	RO	60 months	60  months
Legal Firm / Collections	L	60 months	60  months
Other	O	60 months	60  months

From the BASA Training, based on its "debt type", we see what the

maximum term for each restructured debt should be

Interest may be reduced if :

·                     Home loans don’t solve within 240 months from date of proposal, with a maximum term of 360 months from original contract date

·                     Vehicle loans do not solve within the original contract term x 1,5 or a maximum term of 84 months from the contract date

·                     Short terms loans, loans repayable in less than 12 months, don’t solve within the original contract term x 3 from the contract date.

·                     Other agreements do not solve within 60 months from the proposal date.

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·                     The interest rate reduction is done by taking the agreement with the highest rate and reducing it to the same rate as the next highest agreement

·                     If a solution is found then the reduction stops there, if not then both of those agreements are reduced to the next highest and so on

·                     If no resolution is reached at this point the debt counsellor may formulate the proposal in any way that is appropriate.

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