The so-called "Debt Relief Bill" has generated an avalanche of headlines claiming that consumers’ debt is to be expunged. Here are the facts.
Tag - National Credit Act
A bank may no longer unilaterally transfer funds from your bank account to settle your outstanding bank debts.
Many consumers do not know they have credit life insurance which settles your loan should you die, become disabled or get retrenched.
When pawning an asset or borrowing money, be very careful about who you are dealing with, understand the terms of the loan and the risk taken and also make sure you know the rules under the National Credit Act as to the fees that are allowed to be charged.
There is a misconception that debt intervention proposals currently being considered could mean that some debts are likely to be written off.
Just because a credit retailer no longer requires a payslip or bank account doesn’t mean they won’t have to do an affordability test.
Illegal loan sharks continue to operate across South Africa, using threats to collect payment, keeping customers’ bank cards and IDs, and charging interest rates so high that the client will never be able to pay it off.
The latest figures from the TransUnion SA Consumer Credit Index suggest that South African consumers are starting to wean themselves off credit and are learning to better manage their debt repayments.
The NCR is taking Standard Bank to court over the bank's use of the set-off principle to take money from clients to settle outstanding debt.
Amendments to the National Credit Act have set new maximum interest rates which can be charged on a loan, based on the repo rate.