March 2020

Many South Africans are overwhelmed, living in fear and anxiety because of the rapid escalation of the COVID-19 (Coronavirus) which presents an unprecedented threat to South Africa and the world at large. In recent times, we have seen many consumers resorting to panic buying of essential items as the fear of the Coronavirus spreads. The National Credit Regulator (NCR) is encouraging consumers to exercise caution and restraint when spending in this difficult period, says Nomsa Motshegare, Chief Executive Officer of the NCR.

Consumers are urged to make responsible financial decisions. Buying under panic and anxiety has the potential for consumers to buy things they do not need and cannot afford. For some consumers to acquire these items, they resort to using credit and this could be detrimental to their overall financial health. It is important for consumers to remember that credit comes at a cost and that the credit acquired has to be repaid, advises Motshegare.

Ms Motshegare further advises consumers who may be feeling financially distressed due to the impact of this pandemic to be proactive in addressing their finances and debt. Consumers are advised not to ignore their debts, but to contact their credit providers. Consumers can approach a debt counsellor for further assistance if over-indebted.

In light of the recent decrease of the interest rate, consumers should not increase their spending but rather use this opportunity to decrease their current debt and save for emergencies, concludes Motshegare.

ENDS
                                                                                                                           

About The National Credit Regulator
The National Credit Regulator (NCR) was established as the regulator under the National Credit Act 34 of 2005 (NCA) and is responsible for the regulation of the South African credit industry. The NCR is mandated with the registration of Credit Providers, Credit Bureaus, Debt Counsellors, Payment Distribution Agents, and Alternative Dispute Resolution Agents; and monitoring their conduct in compliance with the National Credit Act as amended. The National Credit Regulator offers education and protection to consumers of credit in promotion of a South African credit market that is fair, transparent, accessible and dynamic.

For more information contact:
Media Office: This email address is being protected from spambots. You need JavaScript enabled to view it.
Or
Ntombizodwa Mahlangu
(011) 554-2624 / 064 752 3926
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za

March 2020

March is Human Rights month and has also been adopted as a Consumer Rights month in South Africa. The 15th of March has been declared World Consumer Rights Day (WCRD) and consumer rights will be celebrated world-wide. The National Credit Regulator (NCR) is one of the consumer protection agencies, which celebrates WCRD and has also adopted the month of March as a consumer rights month. During the month of March, the NCR, intensifies its educational initiatives to advocate key consumer rights and responsibilities and to encourage the credit industry players to comply with the National Credit Act (NCA), says Adv. Kedilatile Legodi, Acting Manager: Education and Communication.

The NCR in collaboration with other members of the Consumer Protection Forum (CPF) (CPF is a government voluntary association of consumer protection bodies), will partake in the WCRD celebration on Friday, 13th March 2020 at the East London International Convention Centre in the Eastern Cape under the theme “Fighting Consumer Exploitation.”

This main event will be preceded by a build-up of various events comprising multiple stakeholders. These events will include both compliance monitoring and consumer education and awareness interventions in the Amathole District. In addition to these, the NCR will participate in a number of provincial interactive programmes and undertake awareness programmes using various mediums.

This year, the NCR continues to encourage consumers to know their credit rights to make informed credit decisions and speak up when there is a need to do so. Adv. Legodi believes that consumers can only exercise their rights and responsibilities if they are aware of such.

The National Credit Act provides for key consumer rights as listed below:

• Right to apply for credit –This application must be made in good faith with truthful disclosure of all information by the consumer. If the application is declined by the credit provider, a consumer has a right to receive reasons why the credit application has been declined;
• Right to disclosure of information – A credit provider must provide a consumer with a pre-agreement statement and quotation before he/she can accept and sign the credit agreement;
• Right to receive documents in official language – A consumer has the right to receive any document that is required in terms of the NCA in an official language that the consumer reads or understands, to the extent that is reasonable, having regard to usage, practicality, expense, regional circumstances and the balance of the needs and preferences of the population ordinarily served by the person required to deliver that document;
• Right to receive information in plain and understandable language –A credit provider must give the consumer documents that are in plain, simple and understandable language. This means that the contents, meaning and importance of the document must be easy to understand;
• Right to confidential treatment of personal information – This means that the credit provider may only use your information for the purpose for which it was given;
• Right to access and challenge information held at the credit bureau – A Consumer has a right to receive one free credit report once a year from a credit bureau and to challenge any incorrect information;
• Right to get assistance when over-indebted – A consumer has a right to be assisted when struggling to pay debts.

When a need to apply for credit arises, consumers are reminded to only use credit providers registered with the NCR and should never leave their bank cards, SASSA cards, identity documents and bank PIN numbers with credit providers. If consumers fall victim to such a practice, they should approach their local police station to open a case as this is a criminal offence in terms of the NCA. They should also report such cases to the NCR on 0860 627 627 or This email address is being protected from spambots. You need JavaScript enabled to view it., adds Legodi.

As the NCR continues to raise awareness and educate consumers of their rights and responsibilities, consumers are encouraged to know these rights, use them and be protected, concludes Legodi.

Ends

About The National Credit Regulator
The National Credit Regulator (NCR) was established in terms of the National Credit Act 34 of 2005 (the Act) and is responsible for the regulation of the South African credit industry. The NCR is mandated with the registration of Credit Providers, Credit Bureaus, Debt Counsellors, Payment Distribution Agents, and Alternative Dispute Resolution Agents; and monitoring their conduct in compliance with the National Credit Act as amended. The National Credit Regulator offers education and protection to consumers of credit in promotion of a South African credit market that is fair, transparent, accessible and dynamic.

For more information contact:

Media Office: This email address is being protected from spambots. You need JavaScript enabled to view it.

Or

Ntombizodwa Mahlangu
(011)  554-2612
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za

July 2019

The National Consumer Tribunal (Tribunal) yesterday handed down judgment in favour of the National Credit Regulator (NCR) against a Aristoscan CC, a micro lender trading as JMK Cash Loans, in which it found JMK Cash Loans guilty of various contraventions of the National Credit Act (the Act), including reckless lending.

The evidence presented by the NCR showed that JMK Cash Loans extended credit to consumers who received child support and foster care social grants.

In its judgment, the Tribunal made a finding that child support and foster care social grants are income to be used for the benefit of third parties and cannot be deemed to be the consumer’s income.

“This judgement clarifies that child support and foster care social grants are not to be used as consumer income in credit applications. They are intended to be used for the care and support of the children”, says Nomsa Motshegare, Chief Executive Officer of the NCR.

“Credit providers are warned to observe this judgement and ensure that they do not allow consumers to use child support and foster care social grants as income in credit applications”, concludes Motshegare.

Ends

Issued by:

About The National Credit Regulator
The National Credit Regulator (NCR) was established as the regulator under the National Credit Act 34 of 2005 (the Act) and is responsible for the regulation of the South African credit industry. The NCR is mandated with the registration of Credit Providers, Credit Bureaus, Debt Counsellors, Payment Distribution Agents, and Alternative Dispute Resolution Agents; and monitoring their conduct in compliance with the National Credit Act as amended. The National Credit Regulator offers education and protection to consumers of credit in promotion of a South African credit market that is fair, transparent, accessible and dynamic.

For more information, contact:

Media Office: This email address is being protected from spambots. You need JavaScript enabled to view it.

Or
Lebogang Selibi
(011) 554-2722
064 752 3920
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.