Loss of employment coupled with over-indebtedness has become a compelling social dilemma affecting our children.

Loss of employment coupled with over-indebtedness has become a compelling social dilemma affecting our children.

Clifford Matsebatlela's daughter had to leave a Model C school for a school in his backyard because he is under administration and a moneylender has been debiting his bank account for a loan it had declined to approve.

Matsebatlela, a father of one, said he had survived unemployment for seven years and when he finally found a job, all his creditors pounced on him like vultures.

He had debts amounting to R46000 when he applied for debt administration in 2003, he said.

In December, when he thought he was managing his debt well, he applied for a loan which disrupted his finances so badly he could not buy textbooks for his daughter.

But after declining his loan application, the moneylender, Phakisa Finance, also hastened to debit his bank account, he said.

"They debited R973 and sometimes twice that for a loan they did not advance," said Matsebatlela.

Jan Botha, of Phakisa Finance, blamed the Reserve Bank, saying it had introduced a tricky debit order system, Naedo, last year.

Botha said he had tried to cancel the debit order as soon as Matsebatlela notified him about the unauthorised debit order.

He agreed to refund Matsebatlela and apologised for the inconvenience he had suffered.