Debt Agency – CTXETG http://ctxetg.com/ Sat, 15 Jan 2022 06:03:14 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://ctxetg.com/wp-content/uploads/2021/06/icon-150x150.png Debt Agency – CTXETG http://ctxetg.com/ 32 32 Dealing with debt? Don’t be afraid to ask for help – NBC Connecticut https://ctxetg.com/dealing-with-debt-dont-be-afraid-to-ask-for-help-nbc-connecticut/ Sat, 15 Jan 2022 04:10:42 +0000 https://ctxetg.com/dealing-with-debt-dont-be-afraid-to-ask-for-help-nbc-connecticut/ Debt can be debilitating. Although student loans and mortgages are widely discussed, credit card debt is so stigmatized, but it shouldn’t be. There’s help out there – just ask Maura Donovan. Donovan just bought a new house, but not too long ago the Springfield resident found herself with more than $25,000 in credit card debt. […]]]>

Debt can be debilitating. Although student loans and mortgages are widely discussed, credit card debt is so stigmatized, but it shouldn’t be.

There’s help out there – just ask Maura Donovan.

Donovan just bought a new house, but not too long ago the Springfield resident found herself with more than $25,000 in credit card debt.

And, she doesn’t blame the obsession with shoes or the big items, but rather the simple things, the basics.

“Even like cold medicine or hairspray or whatever. After a while it adds up and you keep swiping that card and you don’t even realize it,” she said.

And when Donovan couldn’t pay his bills on time, the debt snowballed.

“And after probably a few months of phone calls because I was late and I had a salary and all you pay is a minimum and you don’t do any damage, I finally sat down and I I was like, “Okay, I have to do something,” Donovan said.

She searched online and found Money Management International, the nonprofit organization officially known as “Consumer Credit Counseling Services.”

MMI said their credit and housing advice is still provided free to consumers, although a quarter of their customers subscribe to a specific management plan for a small fee.

MMI’s financial educators helped Donovan create a payment plan and they set up concessions with major creditors. This means they can negotiate lower interest rates for people who are struggling to pay their bills, while helping them improve their credit score.

“So on average, that lowers interest rates from about 24% to 7%, so most of your payment goes to principal rather than interest,” said Thomas Nitzsche, MMI’s financial educator. .

MMI said don’t be afraid to seek help when you’re in debt, whether it’s from a counseling service like theirs or even by calling 2-1-1.

They say the sooner you seek advice, the better.

“So if you stop making payments on a credit card, you usually have about three months before that card company either sells it or transfers it to a collection agency. , it becomes much more difficult for us to help,” Nitzsche said.

With MMI management, Donovan said she paid off her debt sooner.

She hopes you’re not ashamed to ask for help like she did.

“My intention was always to pay my bills, but I either fell behind or was overwhelmed by them. So it’s not, you’re not a bad person because of that. You’re right, I needed to learn a lesson. I mean, I learned it the hard way,” she said.

Now Donovan is debt free with a condo she calls her own.

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IMF hails Senegal, pledges $ 180 million aid fund https://ctxetg.com/imf-hails-senegal-pledges-180-million-aid-fund/ Tue, 11 Jan 2022 14:10:02 +0000 https://ctxetg.com/imf-hails-senegal-pledges-180-million-aid-fund/ (Agence Ecofin) – The International Monetary Fund (IMF) is satisfied with Senegal’s economic performance, despite the pandemic and the low vaccination rate in the country. “Recent indicators suggest that a strong recovery is underway, driven by industrial production, services and retail activity. The number of covid-19 cases remains relatively low, and about 14% of the […]]]>

(Agence Ecofin) – The International Monetary Fund (IMF) is satisfied with Senegal’s economic performance, despite the pandemic and the low vaccination rate in the country. “Recent indicators suggest that a strong recovery is underway, driven by industrial production, services and retail activity. The number of covid-19 cases remains relatively low, and about 14% of the adult population is vaccinated, ”the IMF said in a statement.

The institution made this declaration after various reviews of ongoing programs with Senegal. The country will receive Special Drawing Rights (SDRs) resources worth $ 180 million. This brings the total resources obtained under the three ongoing programs to $ 360 million.

The Senegalese economy has rebounded, with forecasts for 2021 dropping from 3.5% to 5%. The industrial and service sectors contributed the most to the growth, according to official data. Public debt, although at 73% of GDP, is expected to fall to 60%.

IMF reviews weigh heavily on the international credibility of countries, especially those in sub-Saharan Africa, whose debt is still perceived as speculative by rating agencies. Note that while countries like Senegal are facing multiple challenges, few effective solutions are offered by both their leaders and private donors to get them back on track.

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What Biden Lacks On For-Profit College Debt https://ctxetg.com/what-biden-lacks-on-for-profit-college-debt/ Sun, 09 Jan 2022 17:44:00 +0000 https://ctxetg.com/what-biden-lacks-on-for-profit-college-debt/ (CNN) – The Biden administration is committed to making college more affordable. But he chose not to reinstate an Obama-era rule meant to prevent students from taking on too much debt to attend predatory for-profit colleges. The rule was repealed by former Education Secretary Betsy DeVos, who was subsequently taken to court over the decision. […]]]>

(CNN) – The Biden administration is committed to making college more affordable. But he chose not to reinstate an Obama-era rule meant to prevent students from taking on too much debt to attend predatory for-profit colleges.

The rule was repealed by former Education Secretary Betsy DeVos, who was subsequently taken to court over the decision. The Biden administration asked a judge late last year to uphold the repeal while it undertakes a months-long process to draft a new version.

It was a move that surprised some advocates of student loan borrowers.

“If the Biden administration is serious about protecting students, it doesn’t make sense for them to continue fighting them in court,” said Aaron Ament, president of the National Student Legal Defense Network, which filed the lawsuit in 2020. .

“They can help right now, all they have to do is stop defending Betsy DeVos’ illegal decisions,” added Ament, who was previously an attorney for the US Department of Education during the Obama administration. .

For-profit colleges have helped fuel America’s student debt problems. According to the latest data from the Department of Education, about 11% of for-profit students default, compared with 7% of students who attend public colleges and about 5% who attend private non-profit colleges.

Many for-profit programs do not lead to higher paying jobs, forcing some students to struggle to pay off their debt. The Education Department found that several for-profit schools had defrauded their students, and as a result, forgave thousands of those borrowers – a move that relieves debt but also costs taxpayers money.

Known as “paid employment,” the rule was intended to identify for-profit colleges and certificate programs that were performing poorly at non-profit colleges – that is, those whose graduates had repayments. high student loans relative to their income. Those who fail to meet government standards would lose access to federal funding. As a result, their students would be prevented from borrowing federal student loans and receiving other types of federal financial aid.

DeVos repealed the rule in 2019, arguing that it ignored factors that could affect a graduate’s earnings other than the quality of the program. She also criticized the rule for keeping for-profit colleges at a higher standard than nonprofit institutions.

Biden administration wants to rewrite the rule
The Ministry of Education intends to put in place a new rule that sets standards for gainful employment. It does this by starting a formal rule-making process next week. The process, known as negotiated rule making, involves a series of meetings followed by a public comment period that typically takes months.

“We are committed to restoring a strong rule of gainful employment as quickly as possible,” Education Department Under Secretary James Kvaal said in a statement to CNN.

“While we respect and appreciate outside feedback on the best way forward to achieve this goal, our judgment is that focusing on the regulatory process will produce the best and most durable rule to protect students,” Kvaal added, who played an important role in drafting the first rule of paid employment.

But while the ministry follows the rulemaking process, the student protections provided by the previous paid employment regulation will not be in place, allowing people to potentially enroll in at-risk college programs between- time.

In a court document, Kvaal argued that, from an operations perspective, it would likely take at least a year, if not longer, to fully implement the old rule. It is not known if this could happen until a new rule takes effect, he wrote.

If the previous rule is restored, the department expects it will have to fight new lawsuits, according to court documents.

Targeting for-profit colleges
Other steps taken by the Biden administration suggested that it intended to target the for-profit college sector. The Federal Trade Commission, for example, sent a letter to 70 for-profit colleges in October, warning them that the agency is considering cracking down on any false promises they make about their graduates’ job prospects and earnings. .

Additionally, a Biden-backed plan to expand the Pell Grants – a type of federal aid given to students with exceptional financial need – would make for-profit students ineligible for the money. The plan was included in Democrats’ Build Back Better legislation, which has stalled in the Senate.

“I think it’s a priority for them, but I think they could do more. It was a little surprising that they didn’t revive gainful employment,” said Carolyn Fast, lawyer and senior researcher at the Century Foundation. , where she works on higher education policy.

“The timeframe for putting in place a new rule is quite long. It makes sense to have the old rule in place in the meantime to make sure students don’t enroll in programs that won’t meet standards, ”she said.

How the rule was supposed to work
The gainful employment rule required for-profit colleges and nonprofit college career certificate programs to display debt-to-earnings ratios, proving that their students could find well-paying jobs upon graduation. If the average ratio did not meet government standards for two out of three consecutive years, the school’s federal funding would be revoked.

Reviews were published in 2017, finding more than 800 programs that did not meet departmental standards. But DeVos repealed the rule before one of the institutions lost federal funding.

The rule has had some effect again in disclosing which programs students are struggling with debts they cannot afford. A graduate theater program at Harvard University, for example, froze enrollment after receiving a failing grade in the government report.

Cancel debt or tackle college affordability
To date, the Biden administration has written off about $ 2.8 billion in student loan debt owed by students who have been defrauded by their for-profit colleges, according to the Education Department. He did so by overturning a DeVos policy that limited the amount of relief owed to defrauded borrowers and by determining that 115,000 former students of the ITT Technical Institute, a now defunct for-profit organization, were eligible for an automatic discount.

But these actions only offer relief after someone has been the victim of fraud. The paid employment rule attempts to prevent the problem from occurring in the first place, protecting students from taking on debt they cannot afford to pay off.

“Instead of cleaning up the background issues, they could also clean things up upstream and save a lot of people from heartache,” Fast said.

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Confusion reigns over the scope of the Debt Collection Authorization Act – Finance and Banking https://ctxetg.com/confusion-reigns-over-the-scope-of-the-debt-collection-authorization-act-finance-and-banking/ Thu, 06 Jan 2022 09:46:17 +0000 https://ctxetg.com/confusion-reigns-over-the-scope-of-the-debt-collection-authorization-act-finance-and-banking/ United States: Confusion reigns over the scope of the Debt Collection Licensing Act 06 January 2022 Allen Matkins Leck Gamble Mallory & Natsis LLP To print this article, simply register or connect to Mondaq.com. California’s new Debt Collection Licensing Act, Cal. Fin. Code § 100000 et seq., entered into force on January 1, 2022. However, […]]]>

United States: Confusion reigns over the scope of the Debt Collection Licensing Act

To print this article, simply register or connect to Mondaq.com.

California’s new Debt Collection Licensing Act, Cal. Fin. Code § 100000 et seq., entered into force on January 1, 2022. However, the incompetent and inconsistent drafting of the legislature has resulted in great uncertainty as to who exactly should be authorized.

Article 100001 (a) provides that “no one shall engage in the business of Debt recovery in this state without first obtaining a license. . . “. Section 100005 authorizes the Financial Protection and Innovation Commissioner to take specified enforcement action if, in his or her opinion,” a person to be licensed under this division carries out a commercial activity as a debt collector without license. . . ”. Note that these two laws use different terms -“ debt collection ”and“ debt collector. ”Both are defined in the DCLA but the definitions are not consistent. Section 10000 (2) (i) defines “debt collection” as “any act or practice in connection with the collection of consumer debts” while Article 100002 (j) defines “debt collector” as “any person who in the ordinary course a business, regularly, on its own or on behalf of others, engages in debt collection. ”Thus, the definition of“ debt collector ”requires more than just“ debt collection ”.

Determining the scope of DCLA is further complicated by the use of nested definitions. The definition of “debt collection” refers to the collection of “consumer debts” which is defined in Section 100002 (f) as “money, property or their equivalent, due or due, or allegedly due or owed by a natural person due to a consumer credit transaction. ”It also includes mortgage debts and“ written off consumer debts ”as defined in article 1788.50 of the Civil Code. Article 100002 (e) qualifies “consumer credit transaction” as “a transaction between a natural person and another person in which goods, services or money are acquired on credit by that natural person from the other person primarily for personal, family or household purposes.

Recognizing that many companies are confused about the scope of DCLA, the DFPI recently added the following notice to its website:

In addition, DFPI will not take enforcement action for unauthorized activity under Section 100001 of the Financial Code if there is a request for good faith legal advice, or a similar request submitted in good faith through DCLA. @ dfpi.ca.gov, before and pending as of December 31, 2021, regarding whether a potential plaintiff is “in the business of debt collection.”

Unfortunately, anyone reading this notice for the first time today will not be able to take advantage of this leniency.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

POPULAR ARTICLES ON: United States Finance and Banking

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Families Use Child Tax Credit to Pay Off Debt, Census Bureau Says https://ctxetg.com/families-use-child-tax-credit-to-pay-off-debt-census-bureau-says/ Tue, 04 Jan 2022 13:22:13 +0000 https://ctxetg.com/families-use-child-tax-credit-to-pay-off-debt-census-bureau-says/ The future of the child tax credit hangs in the balance as the Biden administration struggles to pass the Build Back Better bill, which would extend the benefit until 2022. (iStock) Expanded Child Tax Credit (CTC) payments have been a lifeline for many American families during the coronavirus pandemic. According to Census Bureau data, the […]]]>

The future of the child tax credit hangs in the balance as the Biden administration struggles to pass the Build Back Better bill, which would extend the benefit until 2022. (iStock)

Expanded Child Tax Credit (CTC) payments have been a lifeline for many American families during the coronavirus pandemic. According to Census Bureau data, the vast majority (77%) of recipients used the monthly payment of $ 300 for household expenses and debt repayment.

The Build Back Better Act would extend this benefit until 2022 and make credit permanently accessible to low-income families. But while President Joe Biden’s social spending bill persists in Congress, the future of CTC payments is unknown.

Read on to learn more about how Americans are using the child tax credit, and your alternative debt repayment options if the CTC is not extended. You can visit Credible to compare free interest rates on debt consolidation loans without affecting your credit score.

HOW YOUR TAX STATEMENT CAN IMPROVE YOUR CREDIT

More households use their child tax credit than save it

The US bailout, which was enacted by President Biden in March 2021, increased the amount of the child tax credit and automatically distributed the credit in monthly installments ranging from $ 250 to $ 300 per eligible child. Millions of American families qualify for the full amount, with income limits of $ 150,000 for married couples and $ 112,500 for single-parent households.

When families started receiving advance payments in July, about two-thirds (68%) of them used the CTC payment to supplement their expenses or repay their debts, while one-third (32%) were able to use the CTC payment. save money, according to the Census Bureau. Household pulse survey. Over time, fewer families were able to save the loan – less than one in four recipients (23%) were able to save money, while the vast majority (77%) spent paying the loan. CTC.

5 REASONS FOR TAXPAYERS TO FILE TT TAX

Low-income families are even more dependent on extended credit. Recent research from the Center on Budget and Policy Priorities (CBPP) found that 91% of households with incomes below $ 35,000 depend on CTC payments to cover basic expenses, such as food, shelter and education. CBPP also found that making the expanded CTC permanent would reduce child poverty by more than 40%.

However, the CTC final payment was distributed in December and it will not continue into 2022 unless lawmakers come together to pass the Build Back Better Act. The $ 1.7 trillion spending bill needs the support of all Senate Democrats to pass without Republican backing, but was stuck past its Christmas deadline when the senator moderated Joe Manchin of West Virginia has withdrawn his support for the legislation.

If you were relying on the Child Tax Credit to pay off your debts, you may have to look for other methods of debt repayment in the New Year as the future of CTC payments is not. not clear. You can find out more about paying off your debts by contacting a knowledgeable loan officer at Credible.

MILLIONS WILL NOT GET FULL PAYMENT FOR COVID-19 ECONOMIC IMPACT

How to pay off debt without CTC payments

High interest rate debt is a heavy financial burden that can make it difficult for families to pay other necessary expenses like child care, rent, and utilities. If you’re struggling to pay off your debt without the child tax credit, consider a few alternative debt repayment strategies:

  • Non-profit credit counseling. A credit counselor can analyze your finances to help you create a budget through free financial education. They may also sign up for a Debt Management Plan (DMP) to pay off what you owe, and they may be able to negotiate with your creditors to settle the debt for less than you owe or reduce your debt. interest rate. Some credit counseling agency services can be offered at low cost.
  • Debt Consolidation Loans. This is a type of unsecured lump sum personal loan that is used to pay off high interest debts like credit card balances and payday loans. You will pay off your debt in fixed monthly installments over a set period of time, usually a few years. Personal loan interest rates are currently near their all-time low, but the rate you qualify for depends on your credit rating and debt-to-income ratio, among other eligibility requirements.
  • Balance transfer cards. Borrowers with very good credit may be eligible to transfer multiple credit card balances to a new card at a lower interest rate. Some credit card issuers have introductory 0% APR offers for creditworthy borrowers who open a credit card with balance transfer. Keep in mind that some issuers charge a balance transfer fee of 3-5% of the total amount transferred. You can compare balance transfer offers on Credible for free.

If you decide to borrow a debt consolidation loan, it is important to compare the offers of several lenders to find the lowest possible rate for your financial situation. You can view the estimated interest rates on your debt consolidation loan free of charge without impacting your credit score on Credible, allowing you to determine if this method of debt repayment is right for you.

BETTER RECONSTRUCTION PLAN WILL REDUCE SOLAR PANEL INSTALLATION COST BY 30%, SAYS WHITE HOUSE

Have a finance-related question, but you don’t know who to ask? Email the Credible Money Expert at moneyexpert@credible.com and your question could be answered by Credible in our Money Expert column.

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Can investors trust the actions of cruise lines in 2022? https://ctxetg.com/can-investors-trust-the-actions-of-cruise-lines-in-2022/ Fri, 31 Dec 2021 17:55:19 +0000 https://ctxetg.com/can-investors-trust-the-actions-of-cruise-lines-in-2022/ This was finally the year that cruise lines started sailing again in droves, but the journey was longer Gilligan Island than Love boat. The three cruise stocks that have held up surprisingly well in 2020 – Carnival (NYSE: CCL), Royal Caribbean (NYSE: RCL), and Norwegian Cruise Line Holdings (NYSE: NCLH) – have largely splashed in […]]]>

This was finally the year that cruise lines started sailing again in droves, but the journey was longer Gilligan Island than Love boat. The three cruise stocks that have held up surprisingly well in 2020 – Carnival (NYSE: CCL), Royal Caribbean (NYSE: RCL), and Norwegian Cruise Line Holdings (NYSE: NCLH) – have largely splashed in 2021. The new year is also already starting off on the wrong foot with a new sea storm setting in as the number of new COVID-19 cases hits historic highs.

The U.S. Centers for Disease Control and Prevention (CDC) issued a new warning on Thursday, urging even fully vaccinated people to avoid cruises. The agency’s updated travel health advisory says the COVID-19 virus easily spreads among people near cruise ships. The chances of catching the problematic virus are “very high” on board ships, even for passengers who have completed the initial vaccination process as well as additional booster shots.

It’s not a very good trip. The hardest hit of the travel industries hoped to end the year with an exclamation mark. Instead, we’re heading towards 2022 with another question mark.

Image source: Getty Images.

Rough waters

The new CDC update isn’t as bad as it was earlier this year, when ships weren’t allowed from any US port at all, but it certainly still is. Wrong. It has taken a long time for the cruise industry to restart in this country. Now Carnival, Royal Caribbean and Norwegian face yet another wave of passenger cancellations and a potentially longer route on the way to eventual profitability.

It wouldn’t be a bad hurdle if the actions blocked the landing the first time around, but it didn’t. Inventories of cruise lines have lagged the market in 2021 despite the thorny obstacles to restart this year:

  • Carnival stock is down 5% in 2021 through Thursday’s close.
  • Norwegian Cruise Line Holdings is trading 17% less this year.
  • Royal Caribbean is bucking the trend with a 4% lead in 2021, but lagging far behind market averages.

If 2021 has been a bad year for cruise line investors – despite the arrival of passengers on the bridge – it must be hard to be optimistic about how 2022 will play out. The three major cruise lines saw their stocks fall from 43% to 56% in 2020. They also took on new debt and increased their shares to stay afloat during downtime.

Many cruise line enthusiasts will be sailing anyway. The CDC update is a suggestion, not a mandate. However, that doesn’t mean the experience itself is the same. Many ports of call prevent vessels that have reported cases from making stops on their route. Many of these islands could use the infusion of tourist dollars, but that does not outweigh the safety of residents. Some cruise fans who have no problem accepting the COVID-19 risks inherent in boating may wait if they know destinations may be refused during a trip.

Things don’t have to end badly. We are seeing outbreaks of COVID-19 on many ships given the highly contagious nature of the omicron variant, but we are also generally seeing fewer passenger deaths and extended recoveries. This is a sign that the safety protocols implemented by the ships are working to some extent. It is also hoped that this fifth wave of the virus could be closer to the finish line of COVID-19, but we have seen how past forecasts of recovery have fallen flat. Carnival, Royal Caribbean and Norwegian enter 2022 with uncertainties and low expectations. If you are an investor, there is worse than buying cruise line stocks when there is blood in the water and expectations are low.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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Seremban bank agent loses RM 105,000 in Macau scam https://ctxetg.com/seremban-bank-agent-loses-rm-105000-in-macau-scam/ Thu, 30 Dec 2021 03:15:00 +0000 https://ctxetg.com/seremban-bank-agent-loses-rm-105000-in-macau-scam/ SEREMBAN: A 47-year-old bank agent lost almost 105,000 RM in a phone scam here. State Commercial Crime Investigation Department superintendent Aibee Ab Ghani said the victim received a call from a woman on Wednesday (December 29) claiming to be an officer at another bank. “The victim was informed that an amount of RM 4,663 had […]]]>

SEREMBAN: A 47-year-old bank agent lost almost 105,000 RM in a phone scam here.

State Commercial Crime Investigation Department superintendent Aibee Ab Ghani said the victim received a call from a woman on Wednesday (December 29) claiming to be an officer at another bank.

“The victim was informed that an amount of RM 4,663 had been used on his credit card to purchase Bitcoin.

“The call was then apparently transferred to someone who identified themselves as Sarah from Bank Negara,” he said.

Superintendent Aibee said “Sarah” told the victim she was being questioned because several questionable transactions had been made under her name.

The call was again transferred to a male suspect who asked the victim for his bank details, including all of his other credit cards.

He was also told to change personal identification numbers at the ATM.

“The victim voluntarily gave all the information without realizing that it was a scam,” he said.

Superintendent Aibee said the victim decided to check his bank accounts soon after and was shocked to find that RM 104,000 had been withdrawn from his bank account.

The case was being investigated under article 420 of the Criminal Code for cheating.

The offense is punishable by imprisonment from one to 10 years, flogging and a fine if convicted.

The term “Macau Scam” was coined because it is believed to originate from Macau or that the first victims came from there. This has never been confirmed.

The scam often begins with a phone call from someone posing as an agent of a bank, government agency, or debt collector.

The scammer will then claim that the potential victim owes money or has an unpaid fine, often with a very short window of less than an hour, to settle the payment or face “dire consequences”.

These unsuspecting victims will then be asked to make payments to bail them out.

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Councils want monopoly on electricity delivery in South Africa – despite massive debt and failures https://ctxetg.com/councils-want-monopoly-on-electricity-delivery-in-south-africa-despite-massive-debt-and-failures/ Tue, 28 Dec 2021 08:01:08 +0000 https://ctxetg.com/councils-want-monopoly-on-electricity-delivery-in-south-africa-despite-massive-debt-and-failures/ The South African Local Government Association (Salga) has filed an application with the High Court in Pretoria for a declaratory order that would give South African municipalities exclusive rights to administer, distribute and sell electricity throughout South Africa. There are eight metropolitan municipalities, 44 district municipalities and 205 local municipalities in South Africa, the boundaries […]]]>

The South African Local Government Association (Salga) has filed an application with the High Court in Pretoria for a declaratory order that would give South African municipalities exclusive rights to administer, distribute and sell electricity throughout South Africa.

There are eight metropolitan municipalities, 44 district municipalities and 205 local municipalities in South Africa, the boundaries of which stretch across South Africa.

This means that municipal areas cover the entire landmass of South Africa.

If successful, Salga’s lawsuit would require Eskom to obtain authorization and enter into service provision agreements (SDAs) with each of the municipalities in which the national electricity company currently owns and operates its electricity transmission and distribution networks.

Eskom says it will vigorously defend its rights under the Electricity Regulation Act (ERA).

As a South African electric utility, Eskom has obtained transmission and distribution licenses from the National Energy Regulator of South Africa (Nersa) since the inception of the Regulator.

Eskom supplies electricity directly to approximately 6.9 million customers in South Africa. These include approximately 6.7 million residential customers, 53,000 commercial customers, 3,560 mining and industrial customers, 78,500 agricultural customers and 470 rail customers across the country.

Gwede Mantashe, Minister of Mineral Resources and Energy

Other organizations also hold distribution licenses from Nersa and are named as defendants alongside Eskom in the Salga application to the High Court in Pretoria.

These include Sasol, AECI, South Africa National Parks, Mpumalanga Economic Growth Agency, West Rand Power Distributors, Vleesbaai Dienste, Damplaas Kragbron and Ithala SOC .

It is also known that a number of mines located in remote areas of South Africa are powered directly by Eskom for their own use, and that some of these mines also distribute electricity to associated local employees and residential areas. of the mining community.

The ministers of mineral resources and energy, public enterprises and cooperative governance and traditional affairs, as well as the regulator, Nersa, are also cited as respondents in the Salga request.

Salga’s lawsuit appears to ignore the fact that many municipalities in South Africa are in fact failing to meet their service delivery obligations.

Locally, residents are deeply unhappy with the levels of service and the quality of supply in these municipal areas, as evidenced by widespread and ongoing protests and civil unrest.

Many municipalities are in a state of extreme financial distress, with associated failures in municipal administration, billing, revenue collection and asset protection.

Domestic and commercial customers supplied by municipal electricity distributors complain of exorbitant mark-ups on electricity purchased from Eskom and large and continuous blackouts due to old and poor municipal electricity distribution infrastructure. maintained.

The financial and administrative weakness of many municipalities in South Africa is such that they are not only unable to properly collect the income of their customers, but they are also unable or unwilling to pay for the electricity they obtain. with Eskom.

Currently, municipalities owe their debt to Eskom in excess of R40 billion, and the number is growing steadily, at a rate of approximately R8 billion per year.

As a result, Eskom was forced to engage in what is euphemistically known as “burden reduction”.

This involves cutting off the electricity supply to the offending municipal areas at certain times of the day, both as a credit control mechanism and to avoid overloading Eskom’s power system by customers who do not pay for electricity. that they use.

All of this massively disrupts the operations of businesses powered by municipal electricity distributors, and results in loss of income, productivity and jobs, as well as an inability to grow and adequately meet the needs of the community. South Africa in terms of economic recovery and growth after the Covid-19 pandemic.

Nkosazana Dlamini Zuma South African Minister for Cooperative Governance and Traditional Affairs
Nkosazana Dlamini-Zuma, Minister of Cooperative Governance and Traditional Affairs

It seems pretty clear that Salga’s candidacy is driven primarily by the ambitions of local government structures to raise the price of electricity across South Africa to the levels charged in municipal electricity tariffs.

In addition, municipalities want to be able to apply levies and surcharges on the sale of electricity across South Africa, including direct sales of electricity by Eskom.

Salga recognizes that commercial and industrial customers supplied directly by Eskom obtain electricity at prices significantly lower than those supplied by municipalities. Salga complains that this undercutting of municipal tariffs by Eskom is discriminatory.

“Eskom customers often pay less for electricity than their counterparts who receive electricity from municipalities. The total revenue lost by municipalities in 2019, for example due to the supply of Eskom within municipalities [area of] jurisdiction, is 162.36 billion rand, ”says Salga.

“What this means commercially is that a company located in an area served by Eskom will pay less for electricity than a company located in an area served by a municipality. Indeed, the old business will operate with an unfair advantage over the one provided by the municipality, ”continues Salga.

Salga further complains that municipalities lose out by not being able to apply charges and surcharges on sales of electricity by Eskom to its own customers, as do municipalities when supplying electricity to their own customers. .

“In 2019, municipalities lost an opportunity to generate nearly R6 billion in surcharges due to direct supply from Eskom,” he said.

Salga also laments the fact that municipalities cannot cut off electricity as a measure of credit control against customers in Eskom’s supply areas who may be behind on their municipal tariffs, water and electricity bills. sanitation.

This, according to Salga, results in lower levels of revenue collection by municipalities for these other municipal services and results in a loss of overall municipal revenue.

Xolile George, CEO of the Association of Local Governments of South Africa

It would appear, if Salga is to be believed, that the answer to all of this is to demand that Eskom and all other licensed electricity distributors come under the executive control of the relevant municipality in which the electricity customers reside.

This would give municipalities the right to require an SDA from all electricity distributors and to charge Eskom and other electricity distributors for the right to operate in municipal areas (i.e. throughout the city). ‘South Africa).

It would also allow municipalities to apply levies and surcharges on the sale of all electricity in South Africa to finance and subsidize all kinds of municipal costs, activities and services.

Salga says municipal and local government structures have been trying to get Eskom’s approval since 2013.

However, Salga says the national electricity company has “been hot and cold on the issue of SDAs with municipalities” for years, and has been recalcitrant in failing to enter into and close out of SDAs.

“Unfortunately, all of these commitments were in vain due to disagreements between those in charge of Salga and Eskom,” says Salga.

While Eskom, Sasol, AECI and other licensed electricity distributors have indicated their intention to oppose Salga’s claim, it appears that to date none have actually submitted their opposition documents. in court, which Salga said should have been done by mid-October 2021.

In addition, the spokespersons for the Ministers of Minerals and Energy, Public Enterprises and Cooperative Governance and Traditional Affairs, and the regulator, Nersa, all remain “shtum” when asked if, as as named respondents, they will oppose Salga’s request.

This issue is clearly such a hot potato, with massive financial impacts on the South African economy and on electricity customers, large and small, currently supplied directly by Eskom, that none of the relevant ministries and regulators are ready to apprehend it.

From the extended silence, it seems pretty clear that machinations are now underway behind the scenes and that no one is ready to come out publicly with a statement on the matter, especially to make a decision or allow the court to rule. on the matter by declaratory order.

Perhaps the political solution will be to push the boundaries for ten years or so.


Now Read: Eskom To Defend 20.5% Electricity Price Rise

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Get skills, not bills, on an unpaid internship https://ctxetg.com/get-skills-not-bills-on-an-unpaid-internship/ Sun, 26 Dec 2021 06:20:13 +0000 https://ctxetg.com/get-skills-not-bills-on-an-unpaid-internship/ Each summer, students flood desks as unpaid interns, soaking up their knowledge and seeking positive references while taking lunch orders and organizing storage cupboards. But this reliance on unpaid work leaves students unable to afford free work. From moving to another city temporarily, buying and maintaining proper office attire, and paying day-to-day costs, adding a […]]]>

Each summer, students flood desks as unpaid interns, soaking up their knowledge and seeking positive references while taking lunch orders and organizing storage cupboards. But this reliance on unpaid work leaves students unable to afford free work. From moving to another city temporarily, buying and maintaining proper office attire, and paying day-to-day costs, adding a few lines to your resume can cost thousands of dollars.

According to Carlos Mark Vera, co-founder and executive director of Pay Our Interns, a nonprofit that fights to end unpaid internships across the country across all industries, unpaid internships disproportionately hurt people. specific populations. Women work without pay more often than men, and compared to white interns, black and Latino interns take on more debt during their internships. “It really creates that glass ceiling for people of color,” says Vera.

Vera, who is still paying off the credit card debt he racked up during an internship at the White House seven years ago, was inspired to start Pay Our Interns after a conversation with a young college student who skipped groceries. to pay for the dry cleaning for his clothing internship. “I think this whole grind / hustle mentality is so ingrained that you have to pay your dues,” says Vera. “It’s daring to imagine how things could be.”

Unfortunately, unpaid internships are still the norm. Perhaps the Great Resignation will make employers pay interns for their work, as they should. But until then, if an unpaid internship could help you gain experience, here are some ways to ease the financial burden and limit the amount you put on your credit card to get by.

KNOW YOUR RIGHTS

The US Department of Labor has guidelines on what constitutes a legal unpaid internship – your job cannot replace that of a paid employee, for example. If you believe that your internship is in violation, you can file a complaint with the Ministry of Labor or your national employment agency. You may be entitled to back pay.

FIND SCHOLARSHIPS AND SPECIALTY PROGRAMS

Many universities offer scholarships specifically for unpaid internships, depending on your school and major. You must apply and funding is not guaranteed, but the effort can pay off.

You can also find paid opportunities through specialized programs created by nonprofits and professional organizations. For example, aspiring black and Latino financial planners can apply through the BLX internship program to be placed in a paid internship at a paid financial planning company. According to Luis F. Rosa, certified financial planner and co-founder of the BLX internship program, they placed 38 candidates on internships last year, and of those, 20 received job offers.

FINANCING UNPAID WORK WITH PAY WORK

“I would combine an internship with other side assignments or part-time jobs,” says Mark Reyes, a certified financial planner at Albert, a financial wellness app. “Depending on the internship time commitment, you may be able to balance more than one job at a time.” However, he cautions that it can quickly lead to burnout.

Vera felt the pressure as a student working part-time while doing an internship 20 to 30 hours per week. “Sometimes I struggled not to fall asleep during my internship,” he says.

School and two jobs is a lot to manage. To ease the burden, you can work for pay during the school year and save that money to cover the cost of a summer internship. Or limit unpaid work to a part-time schedule so that you can have time for paid work as well.

WIN AN INTERNSHIP EXPERIENCE WITH PAYING JOBS

If you need the income from your paid employment to fund tuition, living expenses, and other costs, it can be difficult to direct some of that money towards your living during an unpaid internship. But your paid work can already offer the chance to learn beyond your actual role.

Rosa could not afford unpaid internships as a student because he was contributing financially to her family. He found he was able to create internships in some of his paid jobs, like when he worked at a law firm and also asked to spend time learning about the industry.

SEIZE OPPORTUNITIES FROM A REMOTE

The pandemic has turned many office jobs into entirely remote positions, and that’s a boon for interns who can’t afford a summer in an expensive big city. With a remote internship, you will avoid paying for the move, travel expenses and work clothes. In addition, having remote working experience on your CV will strengthen your application for a virtual position in the future.

USE STUDENT LOANS INSTEAD OF CREDIT CARDS

You can use your student loan funds for living expenses if you are doing an unpaid internship for college credit. It’s still debt, but student loans charge lower interest rates than credit cards.

“People mistakenly think that all debt is bad, but student loans are there to add value to your life,” Reyes says. “It takes discipline and it’s not for everyone. It’s not free money, but it’s cheaper debt than credit cards.”

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FG pressured us to shut down Globacom over N4.7 billion debt: NCAA https://ctxetg.com/fg-pressured-us-to-shut-down-globacom-over-n4-7-billion-debt-ncaa/ Fri, 24 Dec 2021 16:15:46 +0000 https://ctxetg.com/fg-pressured-us-to-shut-down-globacom-over-n4-7-billion-debt-ncaa/ The Nigerian Civil Aviation Authority says it has closed Globacom Limited’s main switching center in Wuse 2, Abuja for non-payment of the 4.7 billion naira debt due to “enormous pressure” exercised by the federal government. NCAA chief executive Musa Nuhu conducted the exercise on Wednesday under the supervision of Aviation Minister Hadi Sirika. “My agency […]]]>

The Nigerian Civil Aviation Authority says it has closed Globacom Limited’s main switching center in Wuse 2, Abuja for non-payment of the 4.7 billion naira debt due to “enormous pressure” exercised by the federal government.

NCAA chief executive Musa Nuhu conducted the exercise on Wednesday under the supervision of Aviation Minister Hadi Sirika.

“My agency is under tremendous pressure from the Federal Government of Nigeria, and we will do our best within the limits of our authority to ensure that the debt is settled,” Nuhu told reporters afterwards. having locked the tower that the facility would be changed. until Globacom has paid off the debt.

He revealed that the company had only paid 500 million naira of the 5.2 billion naira it owed, pointing out that the outstanding debt was 4.7 billion naira.

According to him, other telecommunications service providers are paying except Globacom, which has not met since 2007.

“The action we took was aimed at aviation safety in Nigeria. Indeed, any mast passed a certain height, we are supposed to regulate it to make sure that it is well covered ”, added the boss of the NCAA.

He added: “We fly planes. We fly helicopters, and it could be drones, among other things that we fly. No need for a regular passenger flight. Police, PHCN and all these people; patrolling across the country. I’m sure you’ve seen their helicopters. This is why it is important for us to make sure we have all of these in the roadmap and to implement them. “

According to Mr. Nuhu, the NCAA has written 15 letters to Glo without a “tangible response” since he took office.

“Recently when I arrived we sat down and talked in silence. They paid the money, but they still have nearly 4.7 billion naira in debt. None of the communication service providers owe this amount, ”said Nuhu. “It started in 2007. We don’t like to shut things down, but we have to take this drastic step because we have financial problems and pressure from different parts of the government.”

(NOPE)

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