South Africa's National Credit Regulator (NCR) issued consumer guidance for January, warning that post-festive “financial hangover” pressures can push households into costly borrowing and urging consumers to access credit responsibly. The release emphasises that any borrowing should be limited to what is necessary and obtained only from credit providers registered with the NCR. The NCR cautions that unregistered credit providers may charge excessive interest rates inconsistent with the National Credit Act, fail to conduct affordability assessments, and use unlawful collection tactics such as retaining identity documents, bank cards and PINs, and South African Social Security Agency (SASSA) cards, and may also charge upfront fees. The guidance forms part of the NCR’s national “Spend Wisely/Borrow Wisely” campaign and includes practical steps such as budgeting, planning repayments before taking credit, paying debts on time, saving at least 15% of monthly income, and checking credit reports, noting consumers are entitled to one free credit report each year from each of the 13 registered credit bureaus. The NCR also cites that, of South Africa’s 28.15 million credit-active consumers, 20.77 million are battling with debt repayment.
National Credit Regulator 2025-01-01
South Africa's National Credit Regulator urges consumers to borrow responsibly and avoid unregistered credit providers
The National Credit Regulator (NCR) of South Africa issued guidance urging consumers to borrow responsibly post-festive season, highlighting risks of costly borrowing from unregistered credit providers. The guidance, part of the "Spend Wisely/Borrow Wisely" campaign, advises on budgeting, timely debt repayment, and checking credit reports, noting that 20.77 million of the 28.15 million credit-active consumers are struggling with debt repayment.