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 National Credit Regulator had referred Lewis and Monarch Insurance Company to the National Consumer Tribunal following an investigation into loss-of-employment cover sold to people who would not be able to claim the benefits.
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.
The NCR said it ordered Wonga to submit an audit report and remove adverse credit bureau listings from some of its customers’ records at its own expense.
Missed payments will lower credit scores, but worse still, is when missed payment progress to blacklistings. Adverse listings severly hurt your credit score and turn your credit worthiness negative.”
The NCR has withdraw its recognition of the National Debt Mediation Association (NDMA), Debt Counsellors Association of South Africa (DCASA) and the Credit Ombud
Consumers have rights; however, they also have obligations when entering into credit agreements. Obligations such as honouring the terms and conditions of credit agreements they enter into.
There were 8,826 disputes lodged on information held on consumer credit records for the quarter ended December 2011, which was an increase of 24.8% quarter-on-quarter.