The flip side of this coin, is that creditors and lenders will tighten their lending policies – making access to credit more difficult, according to Adv Kate Thambiran, MD of LUCID Clear Credit.
The NCR says that if a court is presented with evidence that the credit provider failed to take these reasonable steps, the credit provider may be found to have granted credit recklessly. The court may set aside the credit agreement.
A pay-day loan is a small unsecured loan, which attracts the highest interest rate allowed by the NCA – five percent a month.
In terms of the National Credit Act, if a credit provider fails to conduct an affordability assessment before advancing credit to you, the provider could be guilty of entering into a reckless credit agreement.
The Draft National Credit Amendment Bill has proposed changes, which are aimed at affording consumers greater protection.
Motshegare added that the NCR had recorded over a million hits on its website since it was launched and it had also received 12,080 complaints from consumers and resolved 97% of these.
In the first nine months of 2011, 77 percent of credit provided was to people earning under R10 000 a month. They were less likely to receive a notice because of service delivery issues. The Post Office could not be seen as an agent for debt collection.
Eva Smith (Attorney) @ Lucid Living A man who failed to set aside a default judgment after he could not honour the terms of his credit agreement with a bank has brought a challenge in the Constitutional Court, asking it to interpret a section in the National Credit Act (NCA) dealing with […]
When Jonas received his first statement he was startled to discover that he would be paying almost R8,000 for the bed over the 2 year instalment period. Jones wanted to cancel the purchase, but the retailer refused alleging that the credit agreement was binding. Jonas approached Lucid Living for assistance.
By Trishika Veeragudu (Attorney) @ Lucid Living “With the economic downturn weighing heavily on consumers, most unregistered pawnbrokers were making a killing out of vulnerable consumers because most of them were not registered or regulated” according to Thami Bolani, chairman of the National Credit Forum.