November 2018

The National Credit Regulator (NCR) will be hosting a workshop in Katlehong on Saturday, 17 November 2018 on an initiative to educate consumers who reside in and around Katlehong on the National Credit Act (NCA), debt counselling, their consumer rights and responsibilities on credit related matters. This workshop will be held in Ekurhuleni School for the Deaf.

The workshop aims to equip the community with education and awareness of their rights and responsibilities on credit related matters in terms of the National Credit Act. Statistics show that there are about 24.59 million credit active consumers in South Africa and of this number, 38.9% which is 9.6 million consumers unfortunately have impaired records. An impaired record is a record in which a consumer and/or any of the accounts are either classified as three or more payments or months in arrears, have an adverse listing, have a judgment or an administration order.

The NCR will be providing consumers of Katlehong and the surrounding areas with guidance on how to manage their debts, what debt counselling is, how does it work and also dispel the myths associated with debt counselling and the roles of credit bureaus. Kedilatile Legodi, Manager: Debt Counselling at the National Credit Regulator says the NCR will be educating, raising awareness and empowering consumers on how to handle credit and/or debt related problems. 

She says that there are many reasons why people find themselves in financial distress, such as the recession, change in circumstances like divorce or death, poor financial planning and others. These may cause consumers to find themselves no longer being able to pay their monthly debt repayments.

Legodi says that consumers who are in this situation should not hide or feel despondent as there could be help in the form of debt counselling. Debt counselling is a debt relief measure in terms of the NCA that aims to provide relief for consumers who are struggling with debt. This service is only offered by debt counsellors who are registered with the NCR.

The NCR has also invited different stakeholders dealing with consumer related issues who will be present on the day of the workshop. We therefore encourage consumers, to attend this workshop and use the opportunity to engage the NCR on any credit related query and/or complaint they may have. A consumer who is educated on his/her rights is a protected one, concludes Legodi.

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.

November 2018

Out of the 24.59 million credit active consumers, 61.1% are in good standing. However, 38.9% or 9.6 million consumers have impaired records. This is a record on which a consumer and/or any of the accounts are either classified as three or more payments or months in arrears, have an adverse listing, have a judgment or an administration order.

“If you did not budget for “Black Friday” this year, do not be tempted because buying on impulse may cause you to have a bad credit record”, says Jimmy Golele, Acting Manager: Education & Communication at the National Credit Regulator (NCR).

By preparing a budget, consumers can prevent buyers’ remorse and stress of arriving home with products and items that they do not really need. “Credit needs to be paid back with interest and fees”.  “It does cost more to pay by credit than to pay cash”, adds Golele.

The Consumer Credit Market Report (CCMR) which is a publication issued by the NCR indicates that a large number of consumers have taken out credit facilities which largely include credit / garage cards and store cards. The NCR advises consumers to use credit wisely and only when it is necessary.

Golele says that consumers need to take credit that they can afford and pay accordingly as per their credit agreements. Skipping payments will adversely affect consumers’ credit reports which will limit their future chances of accessing further credit when they really need it.

Golele reminds consumers that the festive season is around the corner and if they do not spend wisely during this Black Friday, this could set them back financially in the new year and it will be difficult to catch up. “Consumers should prioritise necessities like their bond / rent, transport, groceries, school fees, insurance etc. before splurging on Black Friday”, advises Golele. “It is really not wise to fund Black Friday shopping spree by taking unnecessary debt because debt is costly and should be used for asset building”, says Golele.

To help consumers avoid the urge to unnecessarily spend this Black Friday, Golele offers these helpful tips:

• Set a realistic budget of what you can afford to spend and stick to it;
• Don’t spend what you don’t have – this means do not live beyond your means and don’t buy if you haven’t budgeted;
• If an item is on sale and you buy it on credit, remember that interest and fees will push up the price. Therefore, cash is king!
• Don’t be impulsive when you shop;
• Have a shopping list to avoid buying unnecessary items - if you don’t need it now, chances are you may never need it. So avoid wasting your time and hard earned money;
• Don’t forget to get a free copy of your credit report from registered credit bureaus on the NCR’s website: www.ncr.org.za.

“Don’t let Black Friday burn a hole in your pocket and be a reason for your financial woes next year”, concludes Golele.

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.

November 2018

The Supreme Court of Appeal has on 08th November 2018 dismissed the MicroFinance South Africa’s (MFSA) application for special leave to appeal the judgment of the Full Court of the North Gauteng High Court in favour of the National Credit Regulator (NCR) and Department of Trade and Industry (dti) on the regulations reducing the interest rates on the short-term loan.

The regulations reduced the interest rate on the second short-term loan in a calendar year from 5% to 3% per month.

“The NCR welcomes the decision of the Supreme Court of Appeal and calls on all credit providers to support initiatives by government and the NCR to address consumer over-indebtedness”, says Nomsa Motshegare, Chief Executive Officer of the NCR.

The regulations remain in force and mean that consumers pay 5% interest on the first short-term loan and 3% interest on subsequent short-term loans in a calendar year.

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.