Septemeber 2024

Johannesburg – A joint operation to clamp down on unscrupulous credit providers  employing illegal bullying tactics against vulnerable and unsuspecting consumers took  place on 2 September 2024 in De Aar, Northern Cape.  The operation was jointly  undertaken by the National Credit Regulator (NCR), South African Police Service (SAPS) and South African Social Security Agency (SASSA)  resulting in 7 arrests and the confiscation of  81 bank cards, 7 Sassa cards, 41 ID books, 9 loan books, and a total cash of R71 506,40 from the suspects. In a similar operation on 6 August 2024 in Loxon, Northern Cape, the NCR, SAPS and Directorate for Priority Crimes – HAWKS delivered 3 arrests and the confiscation of 18 bank cards, 4 Sassa cards, 2 ID books, and 1 SAPS identity card from the suspects.

These operations primarily targeted both registered and unregistered credit providers who unlawfully retain prohibited instruments in terms of the National Credit Act, 34 of 2005 which renders a criminal offence for any person to retain personal instruments such as ID, banks cards, licence to secure repayments in terms of credit agreements reported Tebogo Ntsimane, Manager for Investigations & Enforcement at the NCR. “This is a contravention of the National Credit Act (NCA)” she added. 

Ntsimane said such operations are part of the NCR’s ongoing strategy to ensure compliance to the provisions of the NCA by all credit providers, irrespective of where they conduct business. “The exploitation of vulnerable and unsuspecting consumers, especially pensioners by credit providers will not be tolerated,” says Ntsimane.
CONTRAVENTIONS OF THE ACT BY THE SUSPECTS

• Failure to register as a credit provider- Section 40(1) provides that a person must apply to be registered as a credit provider if the total principal debt owed to that credit provider under all outstanding credit agreements, other than incidental credit agreements, exceeds the threshold prescribed in terms of section 42(1).
• Failure to conduct proper affordability assessments- In terms of Section 81(3), a credit provider must not enter into a reckless credit agreement with consumers. In terms of Section 80(1)(a), a credit agreement is reckless if, at the time that the agreement is made, the credit provider failed to conduct an assessment as required by Section   81 (2) irrespective of what the outcome of such assessment might have concluded at the time.
• Reckless credit granting- As the suspects failed to conduct proper affordability assessments, they have extended credit recklessly to consumers and has consequently repeatedly contravened Section 81(3), read together with Section 80(1)(a).
• Failure to provide consumers with credit agreements in the prescribed form- Section 93(1) prescribes that a credit provider must deliver to the consumer, without charge, a copy of a document that records their credit agreement in a paper form or a printable or electronic form.
• Overcharging of interest- Section 100(1)(c) prohibits the credit provider from charging or imposing an interest charge under a credit agreement exceeding the amount that may be charged consistent with the NCA.
• Unlawful possession of consumers' instruments- Section 133(1)(a) prohibits the credit provider from making use of any document or instrument mentioned in Section 90(2)(1) when collecting on or enforcing a credit agreement. Section 133(2) provides that a credit provider must not, when collecting money owed by the consumer under a credit agreement or when seeking to enforce the agreement, rely on any document, instrument, or contract provision referred to in Section 90(2)(1).

Ntsimane concludes that the NCR conducts proactive and reactive monitoring credit providers monitoring through onsite investigations and responding to consumer complaints about NCA contraventions. In terms of Section 54 of the NCA, the NCR has the authority to issue notices to unregistered credit providers engaging in credit provision activities, directing them to stop engaging in those activities. Consumers are advised to lodge a complaint with the NCR should they be a victim of card retention or any other illegal practice by a credit provider at This email address is being protected from spambots. You need JavaScript enabled to view it.

ENDS

Issued by: NCR - Corporate Communications

For media inquiries, please contact:
Winnie Rabathata
National Credit Regulator (NCR)
Tel: (011) 554 2600  | Cellphone: 064 752 3923 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Web:  www.ncr.org.za

Simphiwe Mthembu
Head of Media Relations
National Credit Regulator (NCR)
Tel: (011) 554 2600  | Cellphone: 072 634 1077 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. | Web:  www.ncr.org.za

ABOUT THE NATIONAL CREDIT REGULATOR

The National Credit Regulator is tasked with regulating the South African credit industry, ensuring fair practices, promoting responsible lending, and protecting consumer rights under the National Credit Act.

August 2024

Johannesburg –Today, 15 August 2024, The National Credit Regulator (NCR), in partnership with the International Finance Corporation (IFC) and with the support of the Swiss State Secretariat for Economic Affairs (SECO), is proud to announce the launch of phase 2 of the South Africa Credit Reporting and Financial Inclusion program, aimed specifically at underserved markets. 

The high-level conference is taking place at the Indaba hotel in Sandton and the program aims at improving the availability of credit information sharing in South Africa, particularly to promote access to finance and financial inclusion for underserved segments in the country.

In line with the NCR’s mandate to ensure financial inclusion and compliance amongst its registrants, this launch will be highlighting the important role of credit reporting for financial inclusion. This pioneering initiative is designed to bridge the financial inclusion gap by providing enhanced credit reporting mechanisms tailored for the unique needs of South Africa’s diverse credit market.

The program will empower traditionally underserved communities by granting them better access to credit, fostering financial stability, and supporting broader economic growth.
The launch of phase 2 of the program marks a transformative moment for South Africa’s credit landscape as it signals the creation of a more inclusive financial ecosystem that serves all segments of our society.

Through the NCR’s partnership with the IFC, which has received support from the SECO, the NCR aims to pave the way for greater financial inclusion and economic empowerment across the country.

Objectives of the program:

1. Enhancing Credit Access: The program aims to improve access to credit for individuals and small businesses that have been historically excluded from the formal financial sector due to limited or no credit history.
2. Promoting Financial Inclusion: By incorporating data from non-traditional sources, the program will provide a more comprehensive assessment of creditworthiness, enabling a larger segment of the population to participate in the formal credit market.
3. Supporting Economic Growth: The inclusion of underserved markets in the credit ecosystem is expected to stimulate entrepreneurial activity, drive economic development, and create jobs, particularly in low-income communities.
4. Strengthening Consumer Protection: The system will also focus on ensuring that credit is provided responsibly, with adequate protections in place to prevent over-indebtedness and other financial risks.

Significance of the Credit Reporting and Financial Inclusion Focus:

In a country like South Africa, where a significant portion of the population remains unbanked or underbanked, the launch of this program represents a critical step towards financial inclusion. The traditional credit market has often been inaccessible to those without a formal credit history, leaving millions of South Africans excluded from opportunities for financial growth and stability.

The introduction of phase 2 of this program will not only open doors to access to credit for these individuals but will also contribute to the development of a more inclusive financial system. By capturing a broader range of credit-relevant data, lenders will be able to make better informed decisions, thus reducing the risk of default and promoting a healthier credit environment.

Furthermore, this initiative aligns with South Africa’s broader financial inclusion agenda and the global commitment to sustainable development. It is a significant milestone in the country’s efforts to create an inclusive economy where everyone has the opportunity to thrive.

‘‘This launch event aims to foster knowledge and awareness of the IFC-NCR partnership and provide a platform for stakeholders to come together, facilitate opportunities for collaboration, identify synergies and potential partnerships. The South Africa Credit Reporting and Financial Inclusion Programme, a collaboration between the National Credit Regulator and the International Finance Corporation, seeks to enhance financial inclusion and credit reporting’’ says Nthupang Magolego, Executive Senior Legal Advisor at the NCR.

“In phase one, a number of alternative data pilots were launched and successfully completed which resulted in the development of several innovative alternate data scoring solutions. A TechSprint and Showcase was held to address compliance and resilience challenges faced by smaller credit providers serving underserved segments of the credit market.
Phase 1 also included the crisis response for credit reporting following the pandemic. Additionally, the scoping for a Public Credit Register to enhance micro- and macroprudential supervision was undertaken”, adds Magolego.

According to Collen Masunda, Global Specialist at the IFC, “phase two of the programme aims to build on the successes of the work done in Phase 1 to expand and scale alternative data pilots to drive credit inclusion of small businesses and marginalised segments. The programme will introduce new initiatives, including the Business Credit and Risk Information Sharing Initiative, which is aimed at enhancing credit information sharing for small to medium business enterprises”, says Masunda.

Phase 2 will build on the momentum of phase 1 by implementing additional activities, including the Public Credit Registry, automation of the NCR, and developing several knowledge pieces on key topics such as gender access and cross-border information sharing.. Overall, phase two will focus on leveraging innovative solutions and strategic partnerships to improve access to credit and financial services for underserved segments of South Africa, promoting economic growth and development.

ENDS

Issued by: NCR - Corporate Communications

For media inquiries, please contact:
Winnie Rabathata
National Credit Regulator (NCR)
Tel: (011) 554 2600  | Cellphone: 064 752 3923 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Web:  www.ncr.org.za

Simphiwe Mthembu
Head of Media Relations
National Credit Regulator (NCR)
Tel: (011) 554 2600  | Cellphone: 072 634 1077 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. | Web:  www.ncr.org.za

ABOUT THE NATIONAL CREDIT REGULATOR

The National Credit Regulator is tasked with regulating the South African credit industry, ensuring fair practices, promoting responsible lending, and protecting consumer rights under the National Credit Act.  For more information, visit www.ncr.org.

ABOUT INTERNATIONAL FINANCE CORPORATION (IFC)
The International Finance Corporation (IFC), a member of the World Bank, is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.

ABOUT SWISS STATE SECRETARIAT FOR ECONOMIC AFFAIRS (SECO)

SECO is the Swiss federal government`s centre of excellence for all core issues relating to economic and labour market policy. It is our aim to contribute to sustained economic growth, high employment and fair working conditions, by creating the necessary regulatory, economic and foreign policy framework.

August 2024

Johannesburg – The National Credit Provider (“NCR”) is issuing an alert to consumers to be vigilant of debt counsellors engaging in the deceptive or misleading practice of placing consumers under debt counselling without their knowledge or consent. “Through an alarming number of complaints received by the NCR, a worrying trend has come to light,” says Ms. Enica Mpete, Manager of the Complaints Department of the NCR, “Debt counsellors are duping consumers into debt counselling without a full understanding of the process which they are entering into, some are not even aware that they have consented to it.”

This prohibited conduct misrepresents the spirit and objectives of the National Credit Act 34 of 2005 regarding the provisions of debt counselling as a debt relief measure. Ms. Mpete adds that debt counsellors are required to conduct debt counselling services in line with the NCA and to conduct these services in a manner that does not put the debt counselling industry and the NCR into disrepute. 

Consumers are urged to be on the alert of this prohibited conduct of debt counsellors who unscrupulously mislead unsuspecting consumers into debt counselling or place them under debt counselling without their knowledge or consent. As the consequences of these actions have long-lasting after-effects on a consumers financial well-being, Ms. Mpete highlights following trends and advice that consumers need to pay attention to.

TRENDS OBSERVED

The following misleading trends leading to the consumers signing up for debt review without their knowledge or consent have been observed:

• Consumers are contacted telephonically where they are offered assistance on debt consolidation or reduction of interests or instalments on their accounts. In other instances, the caller would claim to be calling from the NCR or working together with the NCR and the Government to assist consumers with their debts.
• In most instances, callers already have consumers’ information in respect of their obligations, thus making consumers believe they are really working with the NCR and Government.
• Consumers are misled to provide and/or confirm personal information telephonically with the understanding of providing same for something other than debt counselling (for e.g. debt consolidation or reduced interest or instalment on accounts).
• Debt counselling application forms are sent to consumers via a link to their phone to sign electronically, and all information obtained telephonically is later transferred to the Form 16 or debt counselling application.
• Some consumers only become aware of the debt counselling flag when they apply for credit, which is rejected due to the debt counselling flag.

WHAT YOU NEED TO KNOW AS A CONSUMER:

• Debt counselling or debt review is a formal process that was introduced by the NCA as a voluntary debt relief measure to assist over-indebted consumers.
• A consumer is over-indebted if his/her income is not sufficient to cover all his/her living expenses and debt repayments.
• Consumers have a right to fully understand and consent to any financial decision and MUST NOT be pressured to sign any document without reading it and fully understanding its implications.
• Consumers should approach a debt counsellor for assistance and voluntarily apply for debt counselling – not the other way around!
• It is prohibited conduct and in contravention of the NCA for a debt counsellor to mislead consumers into debt counselling or place consumers under debt counselling without their knowledge and full understanding or consent. 

In addition to the important information listed above, Miss Mpete offers the following warning, “Remember, if you are placed under under debt counselling you will not be able to access further credit until the application is rejected by the debt counsellor or by the Magistrate’s court, or until all your current debt obligations are fully settled”.

WHAT YOU CAN DO AS A CONSUMER:

• You have a right to ask the caller where or how they obtained your information without your consent.
• Do not sign documents on your phone on the first day and/or during the first call.
• Always ask for a copy of the document so you can read it at home before signing anything.
• Be cautious of unsolicited telephone calls offering assistance with your debt obligations and do not fall victim of these scams.
• Stay informed and educate yourself to understand your rights and options as a consumer in relation to debt review and its implications on your financial future.
• Report any related prohibited conduct to the NCR for further investigation.

“The NCR encourages consumers to communicate in writing or in person instead of over the phone where they need to make decisions concerning their finances. If you suspect that you may be a victim, need more information or to report this prohibited conduct, please contact the NCR on the details below. The NCR will continue to monitor these trends and ensure that appropriate enforcement action is taken against debt counsellors who are found to be engaging in this type of unscrupulous and prohibited conduct,” concludes Ms. Mpete.

If you suspect that you may be a victim, for more information or to report this prohibited conduct, please contact Complaints Department on 0860 627 627 or This email address is being protected from spambots. You need JavaScript enabled to view it.

ENDS

Issued by: NCR - Corporate Communications

For media inquiries, please contact:
Winnie Rabathata
National Credit Regulator (NCR)
Tel: (011) 554 2600  | Cellphone: 064 752 3923 Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Web:  www.ncr.org.za

Simphiwe Mthembu
Head of Media Relations
National Credit Regulator (NCR)
Tel: (011) 554 2600  | Cellphone: 072 634 1077 Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Web:  www.ncr.org.za

ABOUT THE NATIONAL CREDIT REGULATOR

The National Credit Regulator is tasked with regulating the South African credit industry, ensuring fair practices, promoting responsible lending, and protecting consumer rights under the National Credit Act.

August 2024

The Financial Sector Conduct Authority (FSCA) and the National Credit Regulator (NCR) are working together on a nation-wide money management and debt counselling consumer campaign. Starting in July 2024, this campaign seeks to empower consumers to make informed decisions about their finances. It intends not only to create awareness, but to also educate consumers about their credit/financial rights and obligations and managing their money and debt more prudently.

Since Covid-19 pandemic, there has been a rise in unemployment and retrenchment, stagnant salaries, and a steady uptick in inflation. These factors have had a negative knock-on effect on consumers, raising the cost of living. This financial strain on most South Africans has left many unable to meet their debt obligations and heavily reliant on credit for financial relief.
The FSCA and the NCR, have identified the need to educate consumers on, debt counselling and loan scams, misleading financial advertising and managing personal finances, amongst others. This initiative is envisaged to create awareness on a consumer’s credit/financial rights and obligations as well as the fiduciary obligations of financial services providers, including debt counsellors. The campaign will include radio interviews, webinars, social media posts, roadshows as well as face-to-face workshops by the FSCA and NCR across the nation.

Ends...

ABOUT THE FINANCIAL SECTOR CONDUCT AUTHORITY
The Financial Sector Conduct Authority (FSCA) is the market conduct regulator of financial institutions. It is responsible for market conduct regulation and supervision. The FSCA aims to enhance and support the efficiency and integrity of financial markets and to protect financial customers by promoting their fair treatment by financial institutions, as well as providing financial customers with financial education.

For FSCA enquiries, please contact:
Financial Sector Conduct Authority
Email address: This email address is being protected from spambots. You need JavaScript enabled to view it.
Telephone: 012 422 2842

ABOUT THE NATIONAL CREDIT REGULATOR
The National Credit Regulator (NCR) was established in terms of 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 NCR media enquiries, please contact:
Winnie Rabathata
National Credit Regulator (NCR)
Tel: (011) 554 2600  | 
Cellphone: 064 752 3923
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Web:  www.ncr.org.za