Reckless Credit Granting

• Contraventions of the National Credit Act, such as unlawful garnishing or Emolument Attachment Orders (EAO)
• Credit provider retains your pension card, bank card, ID document or PIN as surety
• Excessive interest charges
• No pre-agreement statements or quotations provided
• Unlawful provisions in credit agreements. You should only pay for what you get so if anything feels unfair to you, it’s best to consult one of our debt counsellors.
• Ensure that you are not paying more by purchasing a product or service on credit than you would if you were using a debit card or cash
• While you are under debt review, a trustworthy credit provider will grant you a consolidation loan to help you repay your debts – beware of credit providers who grant you credit for other purposes

• Clamped down on lenders by charging them with hefty fines, sentencing them to prison or confiscating their licences
• Joined forces with the South African Police Service to conduct on-site investigations at lending institutions across South Africa
• In November 2013, 76 South African lenders arrested under suspicion of reckless credit granting and 64 criminal cases opened
• The National Credit Regulator have been put in power over alternative resolution dispute agents to help tackle reckless lending

• Destabilises the unsecured credit market causing more consumers to become over-indebted
• Causes significant problems in collections space, making collections difficult for honest lenders who don’t employ underhanded tactics
• Illegal activities of a few dishonest lenders damages the reputation of entire unsecured credit industry
• If you applied for a debt re-arrangement and a credit provider enters into a credit agreement with you, it will impact any credit provider who offers you a consolidation loan when you are struggling to make repayments