0860 627 627 (Call Centre) / 011 554 2700  (Reception) 

  info@ncr.org.za / complaints@ncr.org.za / workshops@ncr.org.za

Be smart, mind your money, know your rights webinar

November 2021

The Department of Trade, Industry and Competition (the dtic), together with its agencies, National Credit Regulator (NCR), National Consumer Commission (NCC) and Proudly South African (PSA) will be hosting a joint webinar aimed at educating consumers about their rights and responsibilities whenever making purchases. The webinar comes at a time when consumers are facing considerable financial challenges due to the COVID-19 pandemic. The webinar will take place tomorrow, Thursday, 25 November 2021 from 10:00-12:00.

The Deputy Minister of Trade, Industry and Competition, Ms Nomalungelo Gina says that the webinar comes at a most critical period in the year when consumers are bombarded with offerings that purport to offer bargain deals.

“It is of the utmost importance that we alert consumers on the possible pitfalls they might find themselves in should they not make wise spending decisions. The key principle this season is to ensure that you make your limited funds go a long way and steer clear of offers that seem too good to be true, because more often than not, they exactly are what your instincts say they are,” says Gina.

The CEO of the National Credit Regulator, Nomsa Motshegare advised consumers who will be taking part in this year’s Black Friday and festive season spending to draft a budget, know your limits and only spend what you can afford to pay back.

She also reminded consumers that cash is king, especially for purchasing consumables such as food, clothing, airtime, data and entertainment. Remember, credit comes with interest and other fees such as monthly service fees, once off initiation fees, credit life insurance. Therefore you will end up paying more at the end.

 

The CEO of Proudly South African, Mr Eustace Mashimbye says: “It is important that we manage our finances according to our means. Spending wisely includes making sure that we select locally manufactured and produced goods and services which assist in economic growth and job creation. Buying ‘local’ increases the chances of companies employing more people and more jobs mean more money in the pockets of consumers.”

The Acting Commissioner of the National Consumer Commission, Ms Thezi Mabuza urges consumers to demand goods that are of good quality, in good order and are free of any defects.

“The goods must be usable and durable for a reasonable period of time. If you suspect that goods received or upon collection might have defects, do not take delivery. I want to remind consumers to also exercise caution when buying online as they might be transacting with scammers masquerading as legit businesses. Always try to use reputable suppliers where possible”, she adds.

All the stakeholders seek to encourage consumers to participate and acquire sound knowledge that will assist in managing their finances during Black Friday and festive season.

Invitation link: https://zoom.us/webinar/register/WN_3Bp2Fa8yQ_2zQkG9HOFXWg

Enquiries:
Bongani Lukhele – Director: Media Relations
Tel: (012) 394 1643
Mobile: 079 5083 457
WhatsApp: 074 2998 512
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Issued by: The Department of Trade, Industry and Competition (the dtic)
Follow us on Twitter: @the_dti

The National Consumer Tribunal finds Mr. Clark Gardner, a director of Summit Financial Partners (Pty) Ltd, guilty of contravening the National Credit Act and his conditions of registration as a debt counsellor

November 2021

The National Consumer Tribunal (“Tribunal”) has found Mr. Clark Gardner (“Mr. Gardner”), a director of Summit Financial Partners (Pty) Ltd, guilty of contravening the National Credit Act 34 of 2005 (“the Act”) and his conditions of registration as a debt counsellor.

This follows an investigation of complaints against Mr. Gardner by the National Credit Regulator (“NCR”) related to his activities as a debt counsellor. The Tribunal found Mr. Gardner guilty of contraventions related, amongst others, to –

  1. failing to –
    • make determinations whether consumers are over-indebted;
    • inform consumers of the consequences of applying for debt review;
    • update the records of consumers relating to debt review;
    • notify credit providers and credit bureaus that consumers have applied for debt review; and
    • perform debt counselling functions personally.
  2. over-charging of fees to consumers who applied for debt review; and receiving payments from consumers who applied for debt review at the commencement of the debt review process;
  3. using misleading and deceptive advertisements offering debt repayment reductions of up to 50% and free debt counselling services when his services were not free.

The Tribunal imposed an administrative fine of R500 000.00 on Mr. Gardner.

Furthermore, the Tribunal ordered Mr. Gardner to appoint an independent auditor to audit his consumer files dating back 3 years in order to identify, amongst others, consumers who were overcharged fees by him. The auditors’ report must be given to the NCR once completed, and Mr. Gardner will refund consumers identified by the auditors as having been overcharged.

Ends


About The National Credit Regulator
The National Credit Regulator (NCR) was established in terms of the National Credit Act 34 of 2005 (the Act) and is responsible for the regulation of the South African credit industry. The NCR is mandated with the registration of Credit Providers, Credit Bureaus, Debt Counsellors, Payment Distribution Agents, and Alternative Dispute Resolution Agents; and monitoring their conduct in compliance with the National Credit Act as amended. The National Credit Regulator offers education and protection to consumers of credit in promotion of a South African credit market that is fair, transparent, accessible and dynamic.

For more information contact:

Media Office: This email address is being protected from spambots. You need JavaScript enabled to view it.
Or
Didi Sebothoma
064 752 3910
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za

It is illegal for a credit provider to take a consumer’s ID or cards when granting credit

October 2021

“In terms of the National Credit Act, it is illegal for credit providers to retain consumers’ instruments such as identity documents (IDs), and bank cards when granting credit. This is the modus operandi adopted by some credit providers to enforce credit agreements entered into with consumers”. Ms Anne-Carien Du Plooy, Acting Manager: Education and Communication at the National Credit Regulator said that all people meeting voting requirements have a constitutional right to vote during elections held in the country. The National Credit Regulator is therefore, instructing all credit providers illegally in possession of consumers’ personal instruments to return them to the rightful owners as consumers will need their IDs in order to participate in the upcoming elections, she stressed.

If your bank card or identity document has been taken by a credit provider, you are urged to fetch it from that credit provider. Should they refuse to return these instruments, report the credit provider to your nearest South African Police Service as their conduct constitutes a criminal offence in terms of the National Credit Act, advises Du Plooy.

It is the responsibility of credit providers to thoroughly assess consumers’ applications and conduct an affordability assessment before advancing credit to any consumer. It is in contravention of the National Credit Act to extend credit when you have knowledge that a consumer does not qualify for such a loan. This might constitute reckless credit, she warns.

Du Plooy says that there seems to be confusion about who is supposed to register as a credit provider. In order to clarify this, she explains that it is a requirement for anyone lending money and charging interest, irrespective of the credit amount or the number of clients the credit provider has. Consumers are urged to only use credit providers registered with the National Credit Regulator. Maximum interest rates and other fees such as monthly service fees and once off initiation fees are regulated by the National Credit Act. This means that all credit providers, including smaller ones commonly known as “Loan sharks”, “Mashonisa” or “Skoppers” must adhere to the maximum cost of credit as outlined in the National Credit Act.

If your application for credit is declined, you have the right to be given reasons by the credit provider for the decision. If the reason is, for example, a negative listing at the credit bureau, you need to pay the debt in question for this information to be removed. You do not need to pay a third party for the removal of information at the credit bureau. If the reason is affordability, ensure that you pay your current debt before applying for a new one. Running to unregistered credit providers will be the beginning of your non-ending financial woes, warns Du Plooy.

Consumers should contact the National Credit Regulator for additional information, to lodge a complaint or to report credit providers who keep consumers’ IDs, Bank / SASSA cards at 0860 627 627 or This email address is being protected from spambots. You need JavaScript enabled to view it., concludes Du Plooy.

Ends


About The National Credit Regulator
The National Credit Regulator (NCR) was established in terms of the National Credit Act 34 of 2005 (the Act) and is responsible for the regulation of the South African credit industry. The NCR is mandated with the registration of Credit Providers, Credit Bureaus, Debt Counsellors, Payment Distribution Agents, and Alternative Dispute Resolution Agents; and monitoring their conduct in compliance with the National Credit Act as amended. The National Credit Regulator offers education and protection to consumers of credit in promotion of a South African credit market that is fair, transparent, accessible and dynamic.

For more information contact:

Media Office: This email address is being protected from spambots. You need JavaScript enabled to view it.

Or

Didi Sebothoma
064 752 3910
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za

Lit Black Friday Vibes – Don’t burn your budget!

November 2021

Statistics released by the National Credit Regulator (NCR), as at June 2021, revealed that, 61.59% (16.14 million) of the 26.22 million credit active consumers are in good standing, whilst 38.41% (10.07 million) have impaired records. An impaired record is one which a consumer and/or any of the accounts, are either classified as three or more payments or months in arrears, or which has an “adverse listing”, or that reflects a judgment or administration order. The negative impact of COVID-19 over the last two years on consumers’ finances has caused some financial distress. Therefore, sales such as those on Black Friday should be approached cautiously by consumers to avoid reckless spending and borrowing and possible over- indebtedness, says Anne-Carien Du Plooy, Acting Manager: Education and Communication at the NCR.

Given the hype and the alluring advertising by different retailers, consumers are overcome by the temptation to buy the “specials” and benefit from the “deals” on offer. Such deals may blindside the consumer causing unnecessary credit purchases. Du Plooy reminds consumers that credit purchases don’t actually amount to a savings as you have to pay interest and other fees. Remember, unplanned and impulsive buying, especially on credit, may ultimately damage your credit bureau record and lower your credit score. So it is wise to save and plan your spending for Black Friday and festive season sales, she adds.

Consumers intending to buy on credit should do so responsibly. Check and compare prices before the actual day to source the best deals. Before you commit to a credit agreement, check your budget to establish if you will be able to afford repayments. Always request a pre-agreement statement and quotation and know the real cost of credit after interest and all the other fees have been added, she advised.

Tips to stay financially savvy during Black Friday hype:

  • Avoid impulsive buying. If you did not plan for this year, rather save for other upcoming “specials” during and beyond the festive season, this is not the end of the world;
  • Avoid borrowing from unregistered credit providers to feed your temptations;
  • Set aside the amount you intend to use during Black Friday. Draw up a budget and stick to it. Shopping lists will help to curb excessive spending and unnecessary purchases;
  • If you will be applying for a loan, only apply for what you need, do not be tempted to apply for more just because you are told that you qualify for more;
  • Prioritise your debts – pay off your current debt first before spending money on “wants” and making new debt;
  • Stop comparing yourself with peers and colleagues, everyone has different affordability and budget so don’t compete;
  • Develop a culture of saving and try to save a little every month towards some goal;
  • Always live within your means and not your imagination.

Ends


About The National Credit Regulator
The National Credit Regulator (NCR) was established in terms of the National Credit Act 34 of 2005 (the Act) and is responsible for the regulation of the South African credit industry. The NCR is mandated with the registration of Credit Providers, Credit Bureaus, Debt Counsellors, Payment Distribution Agents, and Alternative Dispute Resolution Agents; and monitoring their conduct in compliance with the National Credit Act as amended. The National Credit Regulator offers education and protection to consumers of credit in promotion of a South African credit market that is fair, transparent, accessible and dynamic.

For more information contact:

Media Office: This email address is being protected from spambots. You need JavaScript enabled to view it.
Didi Sebothoma: 064 752 3910
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za

Mortgages growth holds steady

October 2021

The National Credit Regulator (NCR) released the Consumer Credit Market Report (CCMR) and the Credit Bureau Monitor (CBM). These reports are based on the data submitted to the NCR by registered credit providers and credit bureaus, respectively. The latest edition of the reports covers credit market information from April 2021 to June 2021. The total value of new credit granted increased by 5.81% quarter-on-quarter from R138.81 billion to R146.87 billion. The number of credit agreements entered into increased by 9.63% quarter-on-quarter from 3.20 million to 3.50 million.
The following were some of the most significant trends observed in terms of credit granted for the quarter ended June 2021:

  • The value of new mortgages granted increased by R2.32 billion (4.27%) quarter-on-quarter and by R43.60 billion (335.77%) year-on-year.
  • Secured credit which is dominated by vehicle finance, increased by R2.23 billion (5.45%) quarter-on-quarter, and by R22.67 billion (110.50%) year-on-year.
  • Credit facilities increased by R1.18 billion (6.02%) quarter-on-quarter and by R11.33 billion (119.24%) year-on year.
  • Unsecured credit increased by R2.32 billion (11.51%) quarter-on-quarter and by R12.23 billion (119.71%) year-on-year.

The total outstanding consumer credit balances (or gross debtors book) as at June 2021 was R2.05 trillion, representing an increase of 0.95% quarter-on-quarter and of 4.64% year-on-year. The trends for outstanding balances for the quarter ended June 2021 were as follows:

  • Mortgages debtors book increased by R18.16 billion (1.74%) quarter–on-quarter and by R76.48 billion (7.77%) year-on-year.
  • Secured credit debtors book increased by R3.12 billion (0.68%) quarter-on-quarter and by R16.06 billion (3.62%) year-on-year.
  • Credit facilities debtors book increased by R1.53 billion (0.58%) quarter-on-quarter and by R8.66 billion (3.36%) year-on-year.
  • Unsecured credit debtors book decreased by R2.77 billion (1.30%) quarter-on-quarter and by R10.72 billion (4.85%) year-on-year.

Credit bureaus held records for 26.22 million credit-active consumers, which showed a decrease of 4.77% when compared to the 27.53 million in the previous quarter. Consumers classified in good standing decreased by 868,581 to 16.14 million consumers. This amounts to 61.59% of the total number of credit-active consumers. The number of credit-active accounts decreased from 85.09 million to 85.08 million in the quarter ended June 2021. The number of impaired accounts has decreased from 20.18 million (23.71%) to 19.86 million (23.34%) in June 2021, a decrease of 313,348 quarter-on-quarter and 796,144 year-on-year.

The number of credit reports issued to consumers increased from 584,437 to 588,018. A total of 548,150 (93.22%) credit reports were issued free of charge, and the balance of 39,868 (6.78%) were issued at a cost. There were 30,844 disputes lodged on information held on consumer credit records for the quarter ended June 2021.

It is by no doubt that, COVID-19 has had a financial impact on consumers as some have lost employment whilst others have had a reduction in their income. This has therefore; put a lot of strain to immediate families and even extended families. The NCR continues to encourage those consumers who are battling with their debts to use available debt relief mechanisms such as contacting one’s credit providers and re-negotiating payment terms, if this fails, consumers can consider debt counselling. A list of all registered debt counsellors is available on the NCR’s website (www.ncr.org.za or by calling 0860 627 627). Credit life insurance is also an option to be considered where necessary. In order to know if you have credit life insurance, consumers should check their credit agreements or contact their credit providers for assistance, says Nomsa Motshegare, the Chief Executive Officer (CEO) of the NCR.

 

Comparisons in this release- ‘quarter-on-quarter’ refers to a comparison between the March and June 2021 quarters, and ‘year-on-year’ refers to a comparison between the June 2020 and June 2021 quarters.

ENDS


About The National Credit Regulator
The National Credit Regulator (NCR) was established as the regulator under the National Credit Act 34 of 2005 (NCA) and is responsible for the regulation of the South African credit industry. The NCR is mandated with the registration of Credit Providers, Credit Bureaus, Debt Counsellors, Payment Distribution Agents, and Alternative Dispute Resolution Agents; and monitoring their conduct in compliance with the National Credit Act as amended. The National Credit Regulator offers education and protection to consumers of credit in promotion of a South African credit market that is fair, transparent, accessible and dynamic.

For more information contact:
Media Office: This email address is being protected from spambots. You need JavaScript enabled to view it.
Or
Didi Sebothoma
064 752 3910
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za

Contact details

Physical Address
127 - 15th Road
Randjespark
Midrand
1683

Physical Address
Call-Centre, Complaints and Investigations Department
232-15th Road
Randjespark
Midrand
1683

Consumer Rights

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Challenge Credit Record

Operating Hours

Mon - Thur : 8AM - 5PM
Friday : 8AM - 4:30PM

Call Centre
0860 627 627

Telephone
011 554 2700

National Credit Act

Download the National Credit Act
National Credit Amendment Act
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Background Documents on the NCA

 

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