Recession is a hard time in any circumstance, from increased rates to decreased value for money, consumers can feel the pinch out of nowhere. As South Africa enters into a technical recession, the National Credit Regulators have urged consumers to stay away from new or unneeded debts in our worsening economic climate.
In early June, Statistics South Africa announced that the country’s economy moved into a recession after the GDP contracted in two consecutive quarters- showing negative growth in the first quarter of 2017 and GDP contraction of 0.3% in the fourth quarter of 2016. While this is bad for the country overall, those with debt stress will have an even gloomier image in front of them.
Unemployment and consumer debt seem to go hand in hand in many ways. Now while that may seem obvious, it also raises the question of how they secured a loan without income- this is where the biggest issue comes to light.
In light of recent events and the turmoil that was 2016, the future looks uncertain for South Africa. With a rocky road ahead of us, the SA risk factor is one of the worst in the world- we are one of the top 10 risks to the world in 2017 when looking at economic unrest and internal politics.
What is a garnishee order and how does it work?
When you are in financial trouble, debt counselling can provide you with a solution that can help you find your way back to financial stability and with a Constitutional Court’s ruling earlier this year, the garnishee order as we know it could be a thing of the past.
It pays to know your rights about prescribed debt
A set of circumstances that is fairly unknown to the general consumer, prescribed debt is an important port of debt collection that can often catch people unaware. Prescribed debt is, in short, old debt that has not been acknowledged or paid within three years. Often chased down by debt collectors, many credit users do not know they do not have to pay this debt unless they accept it.
Lewis faces fine for breaching National Credit Act
Found guilty of infringing on the National Credit Act (NCA), Lewis Stores are quickly finding themselves in hot water. Having offered or demanded sales of insurance and financial packages to customers, who should not qualify or do not need them, they have breached the NCA and must now pay the price.
Raids by the National Credit Regulator (NCR) on several lenders in the Northern Cape lead to the arrest of four people over the weekend.
On Tuesday, Lewis Group announced that its subsidiary, Lewis Stores would face the National Consumer Tribunal (NCT) for suspected contraventions of the National Credit Act (NCA). Lewis may be fined heftily if found to be at fault.
The National Credit Regulator (NCR) referred Lewis to the tribunal for allegedly breaching the NCA in its dealings with customers since 2007, the retailer said. Continue reading
Consumer Debt in South Africa
Consumer debt is a major problem in our country. For this reason, we should all be at our most vigilant, when it comes to over-committing ourselves to consumer debt.
South Africa’s economic troubles are nothing new. But, as a credit rating downgrade to junk status looms ever closer, consumer debt has never been a more pressing issue. Continue reading
FNB, MTN SIM-swap Scam
The First National Bank (FNB) and MTN SIM-swap scam, whereby consumers were robbed of hundreds of thousands of rands was allegedly an inside job, according to a private forensic investigator. Continue reading