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.
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.
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
The Prescribed Debt Amendment
When the National Credit Act was amended in March 2015 to prohibit the collection of prescribed debt, we all breathed a sigh of relief.
The amendment was not introduced as a way for people to shirk their debt commitments. But rather because it’s not fair to be contacted by a debt collector out of the blue, demanding payment for an ancient debt. What collectors do is they buy old written-off debts and add years of interest and penalty fees to them. Then they phone you up and demand payment. Continue reading
NCR Crackdown on Creditors
Last week, the National Credit Regulator (NCR) referred 13 microlenders to the National Consumer Tribunal (NCT) for numerous violations of the National Credit Act (NCA). These referrals are part of a greater NCR crackdown on law-breaking creditors. Continue reading
The Sad Truth About Garnishee Orders. – The cost of living has become very high over the years, with people still on the same salary. With the ever increasing inflation rate, people are neck deep in debt to make ends meet. Most people take out a number of small loans with the intention to pay them back quickly. But we all know most of the time that never happens! When you are running low on funds and apply for a loan, any offer looks good, since it will solve the problem at that moment, and people often disregard the exorbitant rate of interest. Continue reading
The purpose of debt review explained
The National Credit Amendment Act (NCA) introduced debt review in 2007 as a professional debt relief process. While under debt review, over-indebted consumers can reduce their credit debt incrementally, without having to face legal action from their credit providers for defaulting or falling into arrears. The NCA was created for the purpose of protecting consumers from reckless creditors and predatory lenders, who aggressively push their finance products, without considering whether or not consumers can afford to make repayments. In this way, consumers are trapped in a cruel debt cycle and have to pay off loans by taking out more loans, while the interest keeps on climbing. As follows, they live off of credit cards and fall ever deeper into debt with every passing month. The NCA outlines and enforces your consumer rights, providing you with legal recourse against credit providers, should they contravene the Act. Continue reading