AT the start of every new year, people all too often find themselves under financial stress, wondering how they will make it to January’s pay day.
It is crucial then, that consumers be vigilant against fake credit providers looking to entrap consumers in loan scams, says the National Credit Regulator (NCR).
‘These scams typically target those who are in distressed financial circumstances and looking for a loan,’ said Jacqueline Peters, NCR Manager: Investigations and Enforcement.
‘The companies use slogans such as ‘blacklisted’ or ‘debt review clients welcome’.’
The decrease in credit approvals has given rise to these scams as consumers find themselves financially stretched.
Peters warns the public on making wise decisions during these vulnerable times.
She said the National Credit Act prevents legitimate credit companies from using the terms ‘blacklisted’ and ‘debt review clients welcome’, and consumers should avoid dealing with any credit provider that advertises in this manner.
Below are some pointers on how to avoid credit scams:
*Treat all unexpected calls, emails and messages with caution – do not assume they are genuine
*Do not pay any upfront fees to release loans – the National Credit Act does not allow credit companies to request upfront payments
*Beware of hidden fees and do not be pressured into acting quickly
*If the proposal is too good to be true, it usually is
For more information, the NCR can be contacted on 011 554 2600/2700 or www.ncr.org.za.
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