Wednesday 18th Sep 2019

Cape Town – The National Credit Regulator (NCR) has warned consumers to be on the lookout for fake credit providers attempting to entrap them in loan scams. NCR investigations and enforcement manager Jacqueline Peters said the scams typically targeted those who were struggling financially and looking for a loan.

The scams used slogans such as “blacklisted” or “debt review clients welcome”.

The increase in these types of scams comes at a time when credit approvals have decreased and consumers are finding themselves financially stretched, the NCR says.

The fake credit providers generally use the details of legitimate credit providers and pretend they are endorsed by government agencies such as the NCR.

Consumers have been urged to:
– Treat all unexpected calls, emails and SMSes with caution. Don’t assume they’re genuine, even if the person seems to know some basic information about you.

– Look out for the name on all emails, in case it is a “clone company” pretending to be a real credit provider.

– Don’t pay upfront fees to release your loans. The National Credit Act does not allow credit providers to request upfront payments. If the credit provider makes this request, report it to the relevant authorities, such as the NCR or the SAPS.

– Be aware of platforms and hidden fees included for sourcing a loan.

– Do not be pressured into acting quickly. A genuine credit provider won’t mind waiting if you want time to think about it and compare quotes.

– Do not engage with credit providers who do not conduct affordability assessments.

– Never give false or incorrect information on a credit application about your financial affairs. Always disclose your financial obligations and living expenses fully.

– Never borrow from an unregistered credit provider.

For more contact the NCR at 011 554 2600/2700 or visit

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