January 2022

The National Credit Regulator (NCR) encourages consumers to make savings one of their New Year’s resolutions in order to avoid borrowing all the time and to avoid over-indebtedness. The festive season has come and gone, leaving some consumers who did not plan properly with nothing. Some of these consumers will be approaching credit providers in order to borrow money to get by for the month, says Ms. Anne-Carien Du Plooy, Acting Manager: Education and Communication at the NCR.

If you are going to get a loan this January to assist you to keep afloat until the next pay day, do so responsibly, says Du Plooy. Tips for responsible borrowing:

• Prepare a budget to see how much you can afford in terms of repayments and to track all your monthly costs;
• Remember the repo rate was increased in November 2021 increasing interest rates, take that into consideration when you apply for credit;
• Only use credit providers registered with the National Credit Regulator;
• Get a quotation and pre-agreement statement – these outline the cost of credit and terms and conditions of the credit agreement you will be signing;
• Understand the total cost of credit outlined in the quotation which includes interest, monthly service fees, one-off initiation fees, credit life insurance etc;
• Do not take on additional credit just because they say you qualify for more;
• Do not take out credit for other people as the risk of non-payment will fall on you;
• Start saving now!
• Avoid credit providers that say “Blacklisted consumers welcome, No credit checks etc”;
• Avoid credit providers that require you to pay an upfront payment before they give you the loan;
• Avoid credit providers that require you to leave your cards, ID and PINs with them;
• Avoid credit providers that offer you a ridiculously low interest rate, if it too good to be true, it usually is.

Remember, if you take out a loan and do not repay it as agreed in the credit agreement, this will adversely affect your credit report. The devastating effects of such adverse listings on credit profiles are that they restrict your chances of qualifying for credit in the future and/or accessing certain jobs where a candidate is considered for employment in a position that requires honesty in dealing with cash or finances.

When applying for a loan, it is important for consumers to truthfully disclose all their expenses. This will enable credit providers to conduct an affordability assessment on the consumer’s ability to repay the loan. “If you fail to truthfully disclose all expenses, you will lose the protection offered by the National Credit Act. In some situations, unscrupulous agents will encourage consumers not to truthfully disclose expenses in order to enhance their chance of qualifying for credit application,” cautions Ms. Du Plooy.

Consumers who require additional information on borrowing wisely or a list of registered credit providers can log on to www.ncr.org.za or contact our call centre on 0860 627 627.

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
Didi Sebothoma
064 752 3910
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za

November 2021

The Department of Trade, Industry and Competition (the dtic), together with its agencies, National Credit Regulator (NCR), National Consumer Commission (NCC) and Proudly South African (PSA) will be hosting a joint webinar aimed at educating consumers about their rights and responsibilities whenever making purchases. The webinar comes at a time when consumers are facing considerable financial challenges due to the COVID-19 pandemic. The webinar will take place tomorrow, Thursday, 25 November 2021 from 10:00-12:00.

The Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina says that the webinar comes at a most critical period in the year when consumers are bombarded with offerings that purport to offer bargain deals.

“It is of the utmost importance that we alert consumers on the possible pitfalls they might find themselves in should they not make wise spending decisions. The key principle this season is to ensure that you make your limited funds go a long way and steer clear of offers that seem too good to be true, because more often than not, they exactly are what your instincts say they are,” says Gina.

The CEO of the National Credit Regulator, Nomsa Motshegare advised consumers who will be taking part in this year’s Black Friday and festive season spending to draft a budget, know your limits and only spend what you can afford to pay back.

She also reminded consumers that cash is king, especially for purchasing consumables such as food, clothing, airtime, data and entertainment. Remember, credit comes with interest and other fees such as monthly service fees, once off initiation fees, credit life insurance. Therefore you will end up paying more at the end.

The CEO of Proudly South African, Mr Eustace Mashimbye says: “It is important that we manage our finances according to our means. Spending wisely includes making sure that we select locally manufactured and produced goods and services which assist in economic growth and job creation. Buying ‘local’ increases the chances of companies employing more people and more jobs mean more money in the pockets of consumers.”

The Acting Commissioner of the National Consumer Commission, Ms Thezi Mabuza urges consumers to demand goods that are of good quality, in good order and are free of any defects.

“The goods must be usable and durable for a reasonable period of time. If you suspect that goods received or upon collection might have defects, do not take delivery. I want to remind consumers to also exercise caution when buying online as they might be transacting with scammers masquerading as legit businesses. Always try to use reputable suppliers where possible”, she adds.

All the stakeholders seek to encourage consumers to participate and acquire sound knowledge that will assist in managing their finances during Black Friday and festive season.

Invitation link: https://zoom.us/webinar/register/WN_3Bp2Fa8yQ_2zQkG9HOFXWg

Enquiries:
Bongani Lukhele – Director: Media Relations
Tel: (012) 394 1643
Mobile: 079 5083 457
WhatsApp: 074 2998 512
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Issued by: The Department of Trade, Industry and Competition (the dtic)
Follow us on Twitter: @the_dti

November 2021

The National Consumer Tribunal (“Tribunal”) has found Mr. Clark Gardner (“Mr. Gardner”), a director of Summit Financial Partners (Pty) Ltd, guilty of contravening the National Credit Act 34 of 2005 (“the Act”) and his conditions of registration as a debt counsellor.

This follows an investigation of complaints against Mr. Gardner by the National Credit Regulator (“NCR”) related to his activities as a debt counsellor. The Tribunal found Mr. Gardner guilty of contraventions related, amongst others, to –

1. failing to –
   • make determinations whether consumers are over-indebted;
   • inform consumers of the consequences of applying for debt review;
   • update the records of consumers relating to debt review;
   • notify credit providers and credit bureaus that consumers have applied for debt review; and
   • perform debt counselling functions personally.
2. over-charging of fees to consumers who applied for debt review; and receiving payments from consumers who applied for debt review at the commencement of the debt review process;
3. using misleading and deceptive advertisements offering debt repayment reductions of up to 50% and free debt counselling services when his services were not free.

The Tribunal imposed an administrative fine of R500 000.00 on Mr. Gardner.

Furthermore, the Tribunal ordered Mr. Gardner to appoint an independent auditor to audit his consumer files dating back 3 years in order to identify, amongst others, consumers who were overcharged fees by him. The auditors’ report must be given to the NCR once completed, and Mr. Gardner will refund consumers identified by the auditors as having been overcharged.

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
Didi Sebothoma
064 752 3910
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za