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January 2019

[JOHANNESBURG] The National Credit Regulator (NCR) has warned consumers to be wary of fake credit providers who attempt to entrap consumers in loan scams.

These scams typically target those who are in distressed financial circumstances and looking for a loan, using slogans such as “blacklisted” or “debt review clients welcome” says Jacqueline Peters, Manager: Investigations and Enforcement at the NCR. 

The increase in these types of scams comes at a time when credit approvals have decreased and consumers are finding themselves to be financially stretched.  This is the time to be more vigilant as it is in the vulnerable times that we should make wise decisions. The National Credit Act prohibits all advertisements for credit from utilising these prohibited terms and consumers should avoid engaging with any credit provider who advertises in this manner, she added. 

 

The fake credit providers would generally use the details of legitimate credit providers and attempt to make one believe that they are endorsed by government agencies such as the NCR, one must not be misled and can look out for the typical signs.  

Below is general advise for consumers to avoid scams:

‘If the proposal is too good to be true, it usually is’.

If a consumer is unsure or in doubt about the legitimacy of the credit provider or agreement, they should contact the NCR on (011 554 2600/2700 or visit our website at www.ncr.org.za.

Issued by: The National Credit Regulator

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