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  info@ncr.org.za / complaints@ncr.org.za / workshops@ncr.org.za

WELCOME TO THE NATIONAL CREDIT REGULATOR

The National Credit Regulator (NCR) was established as the regulator for the South African credit industry by the National Credit Act (34 of 2005) (NCA). It is tasked with consumer education, research, policy development, registration of industry participants, investigation of complaints and enforcement of the NCA.

The NCA requires the NCR to promote the development of an accessible credit market, particularly to address the needs of historically disadvantaged persons, low income persons, and remote, isolated or low density communities.

The NCR registers and ensures compliance to the NCA by the following industry participants: credit providers, credit bureaus, debt counsellors, alternative dispute resolution agents and payment distribution agents.

WELCOME TO THE NATIONAL CREDIT REGULATOR

The National Credit Regulator (NCR) was established as the regulator for the South African credit industry by the National Credit Act (34 of 2005) (NCA). It is tasked with consumer education, research, policy development, registration of industry participants, investigation of complaints and enforcement of the NCA.

The NCA requires the NCR to promote the development of an accessible credit market, particularly to address the needs of historically disadvantaged persons, low income persons, and remote, isolated or low density communities.

The NCR registers and ensures compliance to the NCA by the following industry participants: credit providers, credit bureaus, debt counsellors, alternative dispute resolution agents and payment distribution agents.

Joint operation between NCR, Office of the Consumer Protector and SASSA in Sarah Baartman District Municipality in the Eastern Cape

On Friday, 01 February 2019, the National Credit Regulator (NCR) joined forces with the Office of the Consumer Protector, South African Social Security Agency (SASSA) and South African Police Service (SAPS) from the Sarah Baartman Region in an operation aimed at curbing illegal retention of consumer instruments including identity books, bank cards and SASSA cards, to enforce credit agreements.

The operations were conducted at an entity conducting business in Jeffreys Bay, Somerset East and Humansdorp. During the operation, 393 SASSA and bank cards as well as 37 identity books were seized. Four (4) criminal cases were opened and we are hopeful that there will be swift prosecution of these matters. 

The focus of this kind of operation is primarily to identify credit providers who are unlawfully retaining pension cards, bank cards, identity documents and personal identity numbers (PIN) of their clients as surety. “Retaining these cards is a contravention of the National Credit Act (NCA) and it is a criminal offence”, says Jacqueline Peters Manager of the Investigations and Enforcement Department at the National Credit Regulator. 

Peters says this operation will not be the last of its kind in the region. SASSA and the Office of the Consumer Protector will continue to work together to root out predatory practices and to ensure that all credit providers, no matter where they conduct business, comply with the provisions of the National Credit Act. “The exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated,” added Peters.

“Consumers are cautioned to avoid credit providers who require them to hand over their identity books or SASSA cards as it is a criminal offence and it is usually coupled with reckless lending and overcharging”, concludes Peters.

Ends


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
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

If you can no longer afford to pay your debts, debt counselling could be of help

January 2019

The festive season is over and reality has dawned that we are in a new year which is meant to at least bring all things new. Unfortunately, if consumers did not spend wisely during last year, this will mean that they will have to start the year on a tough note with taking out credit being the only option for some. Didi Sebothoma, Acting Manager: Education & Communication at the National Credit regulator (NCR) says there are many reasons why consumers might need to borrow at this time of the year. It may be because of reckless spending last year, loss of jobs, unplanned costs such as medical, death etc.

We have seen some consumers battling financially last year as the VAT increased and petrol increases making things expensive for consumers. However, statistics from the National Credit Regulator shows that the consumer credit health has slightly improved from 38.9% to 37.4% .This number signifies consumers / accounts that are three or more months in arrears.

“Consumers who need to borrow money to get by should only borrow from registered credit providers”, says Sebothoma. “They should never leave their bank cards, SASSA cards, PINs and identity documents with credit providers”, he adds. It is a criminal offence for a credit provider to take and retain consumers’ instruments. Consumers should also refuse to pay any upfront payments before they are granted a loan. They should report credit providers who charge them such fees to the National Credit Regulator.

Amongst, other things, the NCR regulates interest and fees that credit providers should charge consumers when they take out credit. There are different interest rates for different credit types and most of these are calculated using the repurchase rate (repo rate). The repo rate remains unchanged at 6.75%. For mortgage agreements, the maximum interest rate credit providers can charge a consumer is 18.75% per annum. Credit facilities which include credit cards, overdrafts and petrol cards is 20.75% per annum; unsecured credit transactions which consist mainly of personal loans is 27.75% per annum; developmental credit agreements is 33.75% per annum; short-term transactions is 5 % per month on the first loan then 3% per month on subsequent loans; other credit which includes furniture and vehicle finance is 23.75% per annum; and incidental credit is 2% per month.

Credit providers are also allowed to charge consumers an initiation fee. This is a fee charged to consumers for entering into credit agreements with credit providers. An initiation fee may never exceed 15% of the principal debt. A service fee can also be charged by the credit provider for servicing the credit agreement and it must not exceed R60 excluding VAT.

Other fees that credit providers can charge include credit life insurance which will cover the credit agreement in case the consumer dies, gets retrenched or disabled whilst they still owe the credit provider. This fee is also capped.

There is also a default administration charge which is a fee chargeable by credit providers if the consumer’s account is in arrears. It basically relates to costs incurred by credit providers in advising the consumer that their account is in arrears. Collection costs are costs incurred by a credit provider in attempting to collect outstanding or overdue debt from a consumer. They can also charge costs of an extended warranty agreement, delivery, installation, initial fueling charges, connection fees, levies or charges, taxes, license or registration fees.

Sebothoma advises consumers to get a pre-agreement statement and quotation when seeking credit as these will outline the cost of credit for the proposed agreement. “Consumers should not rush to signing anything at this point until they are clear and certain”, he adds.

He concludes by advising consumers to aim at paying off their debt and building up savings over the longer term.

ENDS


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
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Know your rights - Do not to pay any upfront fees when applying for loans

The National Credit Regulator (NCR) has issued a public warning against Charis Financial Services, an unregistered credit provider, conducting business in Pietermaritzburg; KwaZulu-Natal. 

Consumers are warned that loans extended by Charis Financial Services, are unlawful and may be void due to the fact that they are not a registered credit provider.  

“Credit providers are reminded that as of October 2016 any person or entity that is involved in the provision of credit is required to be registered irrespective of the number of agreements and / or the value of the principal debt”, says Jacqueline Peters, Manager of the Investigations and Enforcement at the NCR.

The National Credit Regulator to educate the community of Katlehong in Ekurhuleni on their consumer rights and debt counselling

[JOHANNESBURG] The National Credit Regulator (NCR) has warned consumers to be wary of fake credit providers who attempt to entrap consumers in loan scams.

These scams typically target those who are in distressed financial circumstances and looking for a loan, using slogans such as “blacklisted” or “debt review clients welcome” says Jacqueline Peters, Manager: Investigations and Enforcement at the NCR. 

The increase in these types of scams comes at a time when credit approvals have decreased and consumers are finding themselves to be financially stretched.  This is the time to be more vigilant as it is in the vulnerable times that we should make wise decisions. The National Credit Act prohibits all advertisements for credit from utilising these prohibited terms and consumers should avoid engaging with any credit provider who advertises in this manner, she added. 

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