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

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

Looting mayhem has cost some consumers dearly

August 2021

The recent looting mayhem in Gauteng and KwaZulu-Natal has, with no doubt, cost some employees and owners of the vandalised premises dearly as some are unable to make monthly repayments towards their debts. This is as a result of the job losses or salary reduction or temporary unemployment as some people will only be called back to work once businesses start functioning again. This means that when business owners are trying to rebuild, many people will be unable to make monthly repayments towards their debts, says Anne-Carien Du Plooy, Acting Manager: Education & Communication at the National Credit Regulator (NCR).

The destruction caused by the looters has left not only business owners, insurers and the government bearing the financial brunt, many others in the value chain such as employees of the vandalised and looted establishments, their families and surrounding small businesses are also affected financially. “If you are a consumer of credit affected by the looting activities that transpired in Gauteng and KwaZulu-Natal leaving you unable to meet your monthly obligations, please inform your credit providers for debt relief assistance”, advises Du Plooy. Missing repayments will, no doubt affect consumers’ credit reports at the credit bureaus, hence it is imperative for consumers to contact their credit providers soonest.

Du Plooy also reminds consumers that credit life insurance which covers the outstanding debt in the event of unforeseen circumstances such as death, retrenchment, unemployment, inability to earn an income, disability and others can be a debt relief measure for those who qualify for it. Consumers are urged to check if their credit agreements are covered by credit life insurance because 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 who would like to use this relief measure but battling to get assistance from their credit providers can send a complaint to the National Credit Regulator. However, it is important for consumers to remember that in order to benefit from credit life insurance, all installments for the credit agreement covered by the credit life insurance must be up to date.

Consumers whose income has been reduced may consider debt counselling as a debt relief solution. Debt counselling is a debt relief measure intended to assist over-indebted consumers struggling with debt, through budget advice, negotiation with credit providers for reduced payments, extension of repayment term and restructuring of debt.

For further advice on other debt relief options available in terms of the National Credit Act or further explanation on the above, consumers are welcome to contact the National Credit Regulator on 0860 627 627 or www.ncr.org.za, 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.
Or

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

NCR Share call: 0860 627 627
Website: www.ncr.org.za

Debt counselling offers new lease of life for over-indebted consumers

August 2021

The National Credit Act introduced debt counselling in 2007 as a debt relief measure that could assist over-indebted consumers through providing budget advice, negotiating with credit providers for reduced payments and restructuring debt, thereby protecting the consumer from legal action by credit providers. Debt counselling is by no means a savings mechanism and consumers should beware of misleading advertising which markets debt counselling by promising consumers monthly savings of about 60%, cautions Anne-Carien Du Plooy, Acting Manager: Education & Communication at the National Credit Regulator (NCR).

Consumers contemplating debt counselling should first understand the terms and conditions. Debt counselling is not a free service, costs and fees are applicable. Not everyone can qualify for debt counselling. In order to qualify for debt counselling, consumers must have a disposable income to enable negotiation for the reduction of installments, says Du Plooy. “Only over-indebted consumers can qualify for debt counselling, if a consumer does not qualify, they will be rejected.” It is therefore, very important for consumers contemplating debt counselling to approach only registered debt counsellors who will advise them of all terms and conditions, costs and fees, as well as conduct proper financial assessments to determine if the consumer can qualify for debt counselling, adds Du Plooy.

Important considerations before contemplating debt counselling:

  • Consumers married in community of property need to apply for debt counselling jointly. What this means is that when two people are married in community of property, one cannot simply undergo debt counselling independently. Only those married out of community of property can apply for, and undergo debt counselling independently;
  • Consumers under debt administration cannot apply for debt counselling;
  • Consumers cannot apply for, or be granted any new credit while they undergo debt counselling;
  • Consumers can only exit debt counselling once they have settled all their short term debt which includes vehicle finance, credit and store cards, loans etc. and have received a clearance certificate from their debt counsellor;
  • Should a consumer have a home loan account, payments have to be up to date in terms of the debt counselling re-arrangement order before a clearance certificate is issued; and
  • A consumer will only be eligible to apply for, or be granted, new credit once they have been issued with a clearance certificate by a debt counsellor.

Remember that debt counselling is not offered free of charge. It is imperative that consumers understand this and are aware of the costs upfront. Debt counselling fees are as follows:

  • Application fee: fifty rand (R50.00), payable prior to commencing the assessment. Paid upfront and in full;
  • Administration fee: three hundred rand (R300.00) per debt counselling application. Paid upfront and in full;
  • Attorney fees: To be agreed upon with the attorney and communicated with the consumer when applying for debt.
  • Restructuring fee is either equal to the distributable amount or a maximum fee of eight thousand rand (R8 000.00) for a single applicant. For consumers married in community of property, the restructuring fee is either equal to the distributable amount or a maximum fee of nine thousand rand (R9 000.00). The restructuring fee is a once off payable in month one (1) after the debt counsellor has drafted and submitted the restructuring documents.
  • After the assessment, if the consumer or debt counsellor strongly feels that there is reckless lending, the consumer is liable to pay a once-off fee of one thousand five hundred rand (R1 500.00);
  • Aftercare fee: is payable monthly after month two (2) of the debt counselling service. The fee is equal to (five) 5% of the distributable amount up to a maximum fee of four hundred and fifty rand (R450.00);
  • NCT Submission fee - Submission of the National Consumer Tribunal  of R500 (excluding NCT filing fee);  
  • Once the restructuring process is complete, a consumer can either make their payments directly to their credit provider or through a registered Payment Distribution Agent (PDA); and
  • Consumers should request a receipt from the debt counsellor upon payment of the application and administration fees. Debt Counsellors are prohibited from collecting and distributing debt counselling funds to credit providers.

Before signing up for debt counselling, consumers are advised to request information from their debt counsellor on how their debts will be restructured. Once signed up, consumers should also request to be given all debt counselling related documents such as their application form, restructuring proposal and court order. Du Plooy once again stressed the importance that debt counselling should only be done by a debt counsellor registered with the NCR and has a certificate that shows their names and their “NCRDC” number. Consumers have a right to demand to see this proof. The NCR also advises consumers to make use of debt counsellors who are in the vicinity of where they live or work as this enables them to physically visit the debt counsellor’s office if the need arises. It is also important to have your debt counsellor’s contact details, names, physical address etc. readily available.

Consumers can get a list of all registered debt counsellors on www.ncr.org.za. Alternatively, consumers can call the NCR on 0860 627 627, 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 0647523910
E-mail: 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

Alternative Data Landscape in South Africa

The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly, and when the reproduction is for educational and non-commercial purposes, without a fee, subject to such attributions and notices as we may reasonably require.

IFC does not guarantee the accuracy, reliability, or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the Governments they represent

The contents of this work are intended for general informational purposes only and are not intended to constitute legal, securities, or investment advice, an opinion regarding the appropriateness of any investment, or a solicitation of any type. IFC or its affiliates may have an investment in, provide other advice or services to, or otherwise have a financial interest in, certain of the companies and parties named herein.

All other queries on rights and licenses, including subsidiary rights, should be addressed to IFC Communications, 2121 Pennsylvania Avenue, N.W., Washington, D.C. 20433. International Finance Corporation is an international organization established by Articles of Agreement among its member countries, and a member of the World Bank Group. All names, logos, and trademarks are the property of IFC and you may not use any of such materials for any purpose without the express written consent of IFC. Additionally, “International Finance Corporation” and “IFC” are registered trademarks of IFC and are protected under international law.

Read more

Men and finances

July 2021

The total outstanding consumer credit balances (or gross debtors book) as at March 2021 was R2.04 trillion. This amount represents monies that South African’s owe in terms of credit which is made up of amongst others, mortgage bonds, vehicle finances, credit cards, personal loans, store cards etc.  This shows that credit plays an important role in people’s lives and if used properly, it can assist to build or accumulate assets, says Ms Anne-Carien Du Plooy, Acting Manager: Education and Communication at the National Credit Regulator (NCR). “However, if credit is used recklessly, it can cause serious financial strain which may leave many consumers struggling to repay their monthly debt instalments”.

Although, we do realise that financial problems are not gender specific, in celebrating Men’s Month in July, the NCR calls on all men to be financially savvy and take control of their finances. At times men try to increase their family household income by participating in different money making schemes such as stokvels, online trading, gambling, investments, excessive usage of their credit cards etc. While trying to increase household income, some men find themselves falling prey to fraudsters or taking more than they can chew. Some men accumulate a lot of debt and become vulnerable to scammers where they will be paying monies upfront with a promise of being given a loan or leave their identity documents with credit providers in order to get a loan.

Du Plooy advises all men with financial problems to have courage to seek professional advice. There are different debt relief measures available such as negotiations with credit providers for lower instalments, debt counselling, and the usage of credit life insurance for those who qualify etc. Thus, the NCR urges men to take control of their finances by doing a monthly budget, checking their free credit reports with credit bureaus and to also seek help when it is needed.

The NCR conducts consumer education workshops at no charge. If men groups / organisations would like the NCR to conduct workshops for them on the National Credit Act which covers, amongst other topics, consumer rights, budgeting, credit information and credit bureaus, debt counselling, repossession etc. they should contact the NCR on 0860 627 627 or on This email address is being protected from spambots. You need JavaScript enabled to view it. or This email address is being protected from spambots. You need JavaScript enabled to view it..

Below are a few tips for men to remain financially savvy:

  • Avoid using credit cards to buy food, alcohol etc.
  • Compile a monthly budget and stick to it;
  • Cut unnecessary expenses from your budget;
  • Make provision for savings in your budget;
  • Seek professional help if you are battling with debt;
  • Only use registered credit providers. You can verify their registration with the National Credit Regulator on www.ncr.org.za;
  • Do not give your personal details such as ID number, baking details etc. to strangers.  

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

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

Contact details

Physical Address
127 - 15th Road
Randjespark
Midrand
1683

Consumer Rights

Consumer Assistance
Know your rights
Consumer Tips
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
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)