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

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

Alternative Data Landscape in South Africa

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Credit extension slows down

July 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 January 2021 to March 2021. The total value of new credit granted decreased by 10.11% quarter-on-quarter from R154.42 billion to R138.81 billion. The number of credit agreements entered into decreased by 12.66% quarter-on-quarter from 3.66 million to 3.20 million.
The following were some of the most significant trends observed in terms of credit granted for the quarter ended March 2021:

  • The value of new mortgages granted decreased by R8.40 billion (13.40%) quarter-on-quarter and increased by R15.33 billion (39.39%) year-on-year.
  • Secured credit which is dominated by vehicle finance, decreased by R6.57 billion (13.82%) quarter-on-quarter, and increased by R1.87 billion (4.77%) year-on-year.
  • Credit facilities increased by R1.91 billion (10.78%) quarter-on-quarter and by R440.37 million (2.29%) year-on year.
  • Unsecured credit decreased by R2.69 billion (11.77%) quarter-on-quarter and by R5.18 billion (20.47%) year-on-year.

The total outstanding consumer credit balances (or gross debtors book) as at March 2021 was R2.04 trillion, representing an increase of 1.27% quarter-on-quarter and of 2.68% year-on-year. The trends for outstanding balances for the quarter ended March 2021 were as follows:

  • Mortgages debtors book increased by R27.10 billion (2.67%) for the quarter ended March 2021 and by R54.05 billion (5.47%) year-on-year.
  • Secured credit debtors book increased by R1.55 billion (0.34%) for the quarter ended March 2021 and by R8.43 billion (1.88%) year-on-year.
  • Credit facilities debtors book decreased by R498.01 million (0.19%) for the quarter ended March 2021 and increased by R167.49 million (0.06%) year-on-year.
  • Unsecured credit debtors book decreased by R3.46 billion (1.60%) for the quarter ended March 2021 and by R10.92 billion (4.88%) year-on-year.

Credit bureaus held records for 27.53 million credit-active consumers, which showed an increase of 0.44% when compared to the 27.41 million in the previous quarter. Consumers classified in good standing increased by 216,007 to 17.01 million consumers. This amounts to 61.80% of the total number of credit-active consumers, an increase of 0.84% quarter-on-quarter and a decrease of 0.78% year-on-year. The number of credit active accounts decreased from 90.47 million to 85.09 million in the quarter ended March 2021. The number of impaired accounts has decreased from 23.85 million (26.34%) to 20.18 million (23.71%) in March 2021, a decrease of 3,650,424 quarter-on-quarter and increased by 296,911 year-on-year.

The number of credit reports issued to consumers increased from 394,458 to 584,437. A total of 493,538 (84.45%) credit reports were issued free of charge, and the balance of 90,899 (15.55%) were issued at a cost. There were 25,404 disputes lodged on information held on consumer credit records for the quarter ended March 2021, a decrease of 4.50% quarter-on-quarter and 35.80% year-on-year.

Nomsa Motshegare, the Chief Executive Officer (CEO) of the NCR recognises that consumers are indeed facing tough times and encourages those who are battling to keep up with their debt to utilise the different debt relief options provided for in the National Credit Act and by the industry. Consumers battling with their debt can approach their credit providers directly to negotiate for lower instalments or for some kind of relief on their debts. If this fails, consumers can approach a registered debt counsellor for assistance.

Motshegare further advises consumers who qualify to claim from their credit life insurance. Credit life insurance covers the outstanding debt in the event of unforeseen circumstances such as death, retrenchment, unemployment, inability to earn an income, disability and others. In the event of the consumer becoming unemployed or unable to earn an income, the credit life insurance cover provides that credit providers must settle / pay the consumer’s debt for a period of twelve (12) months or for the remaining repayment period or until the consumer finds employment or is able to earn an income, whichever period is shorter. Consumers can also enquire from the Department of Labour about unemployment insurance fund (UIF) applications.

Comparisons in this release- ‘quarter-on-quarter’ refers to a comparison between the December 2020 and March  2021 quarters, and ‘year-on-year’ refers to a comparison between the March 2020 and March 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.
Winnie Rabathata: 064 752 3923
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za

The National Credit Regulator warns against false information on the National Credit Amendment Act relating to “Debt Intervention”

June 2021

The National Credit Regulator (NCR) strongly condemns scams, which are mainly via online platforms and are aimed at deceiving consumers about debt intervention, which is a measure intended to assist debt stressed consumers, says Anne-Carien Du Plooy, Manager: Debt Intervention at the NCR.

Although, the National Credit Amendment Act (the Act) was signed into law, it is not yet in operation and await an implementation date to be promulgated. This simply means that it is currently not in effect, stressed Du Plooy.

The NCR has discovered several online scams, such as “ask.auntykaryn.co.za” which direct consumers to apply to certain companies in order to qualify for their debts to be written off under debt intervention. This is incorrect and misleading! 

It has to be emphasized that consumers will only be assisted for debt intervention once the Act has been promulgated by the President.  Consumers should beware these scams and avoid falling victims to them, she says.

Du Plooy provides the following insight about “Debt Intervention”:

  • Consumers should not fall prey or victims to scams where companies and individuals direct them to pay for services with the promise that their debts will be written off. Consumers are encouraged to verify such information with the NCR on 0860 627 627 before any payments are made or agreements entered into.
  • Consumers who are battling with the repayments on their debts can contact a registered debt counsellor directly for assistance.
  • There is no basis for consumers to utilise agents to get to a debt counsellor and pay agent fees.
  • All registered debt counsellors can be found on the NCR’s website at www.ncr.org.za or consumers can contact the NCR on 0860 627 627 for assistance in this regard.
  • Consumers are further cautioned to never give their personal details such as their ID numbers to strangers telephonically or online.
  • A current scam that leads consumers to a website is https://ask.auntykaren.co.za. Consumers are cautioned not to visit this website, to be vigilant and avoid this scam.
  • Remember if it sounds too good to be true, it usually is.

 

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

Winnie Rabathata
064 752 3923
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za

The importance of knowing your credit status

June 2021

According to the National Credit Regulator’s (NCR) Credit Bureau Monitor (CBM), out of 27.41 million credit active consumers, about 395 000 consumers accessed their credit reports in the quarter ending in December 2020. The CBM shows that a significant number of consumers do not check their credit reports as often as they ought to. Although, there has been an increase in the number of consumers accessing their credit reports, the figures still remain low, says Ms. Anne-Carien Du Plooy, Acting Manager: Education and Communication at the NCR.

In order to assist consumers to understand more about credit reports, Du Plooy provides an explanation. A credit report provides a consumer’s credit information such as a person’s credit history, including applications for credit, credit agreements to which a person is or has been a party, pattern of payment or defaults under any such credit agreements, debt review status etc. Further to the type of information kept at the credit bureaus, the National Credit Act also stipulates how long the information should be kept at the credit bureaus, adds Du Plooy.

Consumers are entitled to one free credit report once per annum from any of the four consumer credit bureaus listed below. By accessing their credit reports, consumers will have insight into what is contained in their credit reports. They will also be able to dispute any incorrect information with the credit bureau where they obtained their credit reports, make necessary payments where required and ultimately work on fixing their credit reports if there are any adverse listings, judgments etc., advises Du Plooy. Accessing a credit report will also assist consumers to know if they are a victim of identity fraud.

A healthy credit profile will enable a consumer to qualify for credit and get a lower interest rates as opposed to someone who has a bad credit report. A credit report can also be checked in instances where a company is considering a candidate for employment in a position that requires honesty in dealing with cash or finances. A bad credit report might affect your chances of getting a job, adds Du Plooy

Our message to the youth is to aim to keep a clean credit profile all the time. This can be done by avoiding unnecessary credit, paying all debts as and when required and saving for emergencies. She also added that consumers should avoid taking debt for other people. For an example, you take clothes for your partner on credit with the promise that they will make monthly repayments. In this instance, consumers should remember that the person responsible for payment of the debt is the one who signs the credit agreement as the verbal agreement they made to you will not count.

The NCR urges all consumers to contact any of the below credit bureaus and request a free copy of their credit report, in particular the youth since it is their month. Consumers should dispute any incorrect information with the credit bureaus.
Only escalate to the Credit Ombud if the credit bureaus cannot assist you, concludes Du Plooy.

Contact Credit Bureaus


Experian

(011) 799-3400/ 086 151 4131

www.experian.co.za

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

TransUnion 

0861 886 466

www.transunion.co.za

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

XDS

0860 937 000
(011) 645-9100

www.xds.co.za

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

Consumer Profile Bureau

(010)590-9505

www.consumerprofilebureau.com

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

Credit Ombud

0861 662 837

www.creditombud.org.za

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

National Credit Regulator

0860 627 627

www.ncr.org.za This email address is being protected from spambots. You need JavaScript enabled to view it.

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.

Winnie Rabathata: 0647523923
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za

The NCR and the Credit Ombud rowing together in the same boat.

The National Credit Regulator (NCR) and the Credit Ombud have signed a Memorandum of Understanding (MoU) facilitating co-operation and collaboration in achieving the objectives of the National Credit Act 34 of 2005 (the Act) and specifically the resolution and investigation of disputes between non-bank credit providers, credit bureaux and consumers.

The NCR is responsible for regulating credit providers and is tasked with carrying out education, research, proposing policies to the Minister, registration of industry participants, investigation of disputes and ensuring the enforcement of the NCA 34 of 2005. The Credit Ombud is a voluntary, non-statutory body; afforded recognition under Section 11 of the Financial Services Ombud Scheme Act, 2004 and is an Ombud with jurisdiction in terms of the NCA; which engages in the resolution of disputes arising within the non-bank credit industry and consumers.

Working together is pivotal to building and maintaining the spirit and objective of the NCA.


Section 139 of the NCA provides that the NCR may, upon acceptance of a dispute, refer such dispute to an Ombud with jurisdiction for the purpose of assisting the credit provider and consumer to resolve the dispute. The NCR agreed that all disputes against members of the Credit Ombud will be referred to the Credit Ombud for resolution. The Credit Ombud resolves disputes between consumers and credit providers relating to credit agreements and credit information, this covers all disputes of clothing and furniture retail accounts, micro lenders, and other non-bank loans.

The MoU will see the NCR and Credit Ombud work together on several areas of co-operation. The main elements include the following

  • As an alternative to disputes being investigated by the NCR against subscribing members of the Credit Ombud, the NCR shall refer non-bank credit agreement and credit information matters to the Credit Ombud;
  • Quarterly reporting to the NCR by the Credit Ombud regarding the resolution of disputes referred by the NCR;
  • Capacity building and training programmes;
  • Outreach initiatives and credit industry awareness and education;
  • Research and information sharing.

The services offered by the Credit Ombud is FREE to consumers wanting to resolve their disputes arising from within the non-bank credit industry. Consumers are not bound by the ruling or decision of the Credit Ombud and may refer a matter to the NCR.

Working together is pivotal to building and maintaining the spirit and objective of the NCA.


NCR Contact details:

Call Centre: 0860 627 627
Reception: 011 554 2700
Email: This email address is being protected from spambots. You need JavaScript enabled to view it. / This email address is being protected from spambots. You need JavaScript enabled to view it. / This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.ncr.org.za

Credit Ombud Contact details:

Call center: 0861 662 837
Reception: 011 781 6431
SMS: ‘Help’ to 44786
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Twitter: @creditombud
Facebook: @creditombud
Website: www.creditombud.org.za

Contact details

Physical Address
127 - 15th Road
Randjespark
Midrand
1683

Consumer Rights

Consumer Assistance
Know your rights
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Operating Hours

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

Call Centre
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Telephone
011 554 2700

National Credit Act

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

 

Fraud / Anti-Corruption Hotline

Report any incidents of wrong doing
to the KPMG Ethics Line

0800 20 53 17 (Toll Free)