ONLINE EXCLUSIVE: Know your rights – don’t pay upfront fees when applying for loans
“If you have paid an upfront fee to a fake credit provider, you need to open a criminal case with the SAPS.” March 15 is World Consumer Rights Day and this year's theme is 'Making Digital Marketplaces Fairer'
The National Credit Regulator (NCR) embarked on a consumer rights month campaign in support of the World Consumer Rights Day (WCRD) on March 15.
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The international theme for 2018 is Making Digital Marketplaces Fairer.
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In terms of the National Credit Act (NCA) all credit providers must register with the NCR before granting credit to consumers.
“It is rather sad that some credit providers or sometimes ‘fake’ credit providers who operate online cheat unsuspecting consumers of their hard earned money,” said Obed Tongoane, deputy CEO at the NCR.
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“This normally happens to consumers who are blacklisted and cannot get credit from banks and other formal institutions. Blacklisted is a negative listing that will adversely affect a consumer when they apply for credit.”
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Online scammers take advantage of such consumers because they know that they have nowhere else to go. A fake credit provider is one that is not registered with the NCR, uses a legitimate credit provider’s registration number and the listed business premises on its website does not exist.
In line with the 2018 international theme, consumers should not make any upfront payment to credit providers when applying for a loan.
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The NCR reminded consumers that it is unlawful for credit providers to charge consumers any upfront fees which is a payment that some credit providers charge consumers before granting them loans.
“If you have paid an upfront fee to a fake credit provider, you need to open a criminal case with the SAPS,” said Tongoane.
Consumers should be weary of this as most fake credit providers who operate online charge consumers this fee. Consumers will not be able to get their money back as most of these credit providers are fake and therefore, do not exist in the real world.
“In terms of debt counselling, consumers should take note that debt counselling is not a savings mechanism as it is made out to be by some debt counsellors who promise consumers savings of up to 60 per cent of their monthly instalments,” said Tongoane.
He said the NCA is rather a debt relief measure for over-indebted consumers to enable them to pay their credit providers with their current income.
“Consumers who receive calls from debt counsellors and debt counselling companies promising them savings on their monthly instalments, breaks from their monthly instalments or anything that is too good to be true, should know that it probably is,” said Tongoane.
Consumers should avoid giving those debt counsellors or their call centre agents their identity numbers and their banking details telephonically.
“Remember, you cannot be placed under debt counselling without your consent and without an identity number. It will be difficult for debt counsellors to place consumers who do not want to be placed under debt counselling without their identity numbers and consent,” said Tongoane.
Consumers who feel that they have been placed under debt counselling without their consent should contact the National Credit Regulator for assistance.
Contact the NCR call centre on 0860 627 627 or 011 554-2700 or go to www.ncr.org.za
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