THE National Credit Regulator (NCR) has embarked on a campaign to educate consumers about misleading advertising.
This campaign will focus on debt counselling and credit provider advertising, said NCR debt counselling manager, Kedilatile Legodi.
“The NCR has noted with great concern debt counselling advertisements that are false and misleading to consumers,” explained Legodi
The advertisements are primarily conducted in the form of SMSes, emails and telephone calls, promising consumers that they will be able to save on monthly installments.
Legodi said some debt counsellors, who usually operate from call centres, may inflate consumers’ monthly expenses to reduce the amount available to repay debts.
However, she warned that it is unethical and misleading.
“Consumers should be aware that it is incorrect for debt counsellors to promise specified upfront reduction of installments before conducting a proper assessment,” she said.
Consumers are advised to ensure that they know who their debt counsellor is throughout the process, and to report any misleading SMSes and calls to the NCR on 0860 627 627 or e-mail to dccomplaints@ncr.org.za.
