South Africa's National Credit Regulator published a January consumer advisory under its Spend Wisely/Borrow Wisely campaign, urging households facing post-festive budget pressure to borrow only when necessary and only from credit providers registered with the regulator. The notice also encourages consumers to strengthen saving and budgeting habits to reduce reliance on credit. The regulator cautioned that unregistered credit providers may charge excessive interest rates not aligned with the National Credit Act, skip affordability assessments, levy upfront fees, and use unlawful debt-collection practices such as retaining identity documents, bank cards and PINs, or SASSA cards. It cited 28.15 million credit-active consumers in South Africa, with 20.77 million struggling with debt repayment, and reiterated practical steps including planning repayments before taking credit, understanding credit insurance terms, disclosing information honestly to retain National Credit Act protections, paying instalments on time and engaging lenders early if repayment problems arise, saving at least 15% of income monthly, and checking credit reports regularly, including the entitlement to one free report each year from each of the 13 registered credit bureaus.
National Credit Regulator 2025-01-21
South Africa's National Credit Regulator warns consumers to borrow responsibly and avoid unregistered credit providers in January campaign
South Africa's National Credit Regulator issued a consumer advisory under its Spend Wisely/Borrow Wisely campaign, urging households to borrow only when necessary from registered credit providers. It highlights risks of unregistered lenders, such as excessive interest rates and unlawful practices, and emphasizes budgeting, saving, and understanding credit terms. It also notes that 20.77 million of the 28.15 million credit-active consumers in South Africa struggle with debt repayment.