The National Credit Regulator and the National Consumer Tribunal are ineffective to the extent that individuals and companies are turning to the courts to obtain justice on behalf of the consumer.
Not only is checking your credit score an indication of your level of responsibility regarding your finances, but a credit score also shows creditors how likely you are to pay them back and what risk factors to consider before giving you credit. So, what is a good credit score?
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.
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.
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
Flawed Debt Counselling Guidelines
A significant High Court case between an Mpumalanga debt counsellor and two of the big banks has exposed the unreliability of the National Credit Regulator (NCR) approved debt counselling guidelines of a computer-based program, which prescribes how debt restructuring plans are to be drawn up. Continue reading
Credit vs. Saving
In South Africa, the Debt Counselling National Credit Act promotes an efficient, ethical and transparent credit industry, by protecting consumers from the repercussions of over-indebtedness and reckless lending. In life, we often want or need material things sooner than we can afford to pay for them. As such, we too quickly turn to credit or loans, instead of saving up as we should, in order to buy that car, furniture or clothes at a later stage. Many of us earn so little or spend so much that we can barely afford to make ends meet, so we just scrape by, surviving by the skin of our teeth, ending up with too much month at the end of our money, scarcely able to spare a rand. 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
Caught Infringing the Act
So far, in 2015 alone, the National Credit Regulator (NCR) has referred the following big-name corporate giants to the National Consumer Tribunal (NCT):
- Finbond Mutual Bank – for charging extortionate credit life insurance premiums;
- Lewis Stores and Monarch Insurance – for selling loss-of-employment and disability credit insurance to pensioners and self-employed consumers; and
- DG Trading and JDG Micro Life – for selling disability and retrenchment credit insurance to pensioners and social grant beneficiaries.