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

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

The National Credit Regulator (NCR) was established as the regulator for the South African credit industry by the National Credit Act (34 of 2005) (NCA). It is tasked with consumer education, research, policy development, registration of industry participants, investigation of complaints and enforcement of the NCA.

The NCA requires the NCR to promote the development of an accessible credit market, particularly to address the needs of historically disadvantaged persons, low income persons, and remote, isolated or low density communities.

The NCR registers and ensures compliance to the NCA by the following industry participants: credit providers, credit bureaus, debt counsellors, alternative dispute resolution agents and payment distribution agents.

The Tribunal rules that child support and foster care grants cannot be used as consumer’s income to apply for credit.

July 2019

The National Consumer Tribunal (Tribunal) yesterday handed down judgment in favour of the National Credit Regulator (NCR) against a Aristoscan CC, a micro lender trading as JMK Cash Loans, in which it found JMK Cash Loans guilty of various contraventions of the National Credit Act (the Act), including reckless lending.

The evidence presented by the NCR showed that JMK Cash Loans extended credit to consumers who received child support and foster care social grants.

In its judgment, the Tribunal made a finding that child support and foster care social grants are income to be used for the benefit of third parties and cannot be deemed to be the consumer’s income.

“This judgement clarifies that child support and foster care social grants are not to be used as consumer income in credit applications. They are intended to be used for the care and support of the children”, says Nomsa Motshegare, Chief Executive Officer of the NCR.

“Credit providers are warned to observe this judgement and ensure that they do not allow consumers to use child support and foster care social grants as income in credit applications”, concludes Motshegare.

Ends

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About The National Credit Regulator
The National Credit Regulator (NCR) was established as the regulator under 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
Lebogang Selibi
(011) 554-2722
064 752 3920
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

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