15 March marks Consumer Rights Day, making it the perfect time for consumers to be reminded about what rights they have when it comes to taking out credit and that they can regain control of their finances when they experience over-indebtedness.
According to Neil van der Walt, Debtsafe Marketing Manager, it is critical that people understand and actively exercise their various rights and responsibilities under the National Credit Act (NCA).
“An educated consumer is a protected consumer. Through credit education, you will allow yourself the confidence to know what to look out for when applying for credit and what recommended solution you have when you suffer a debt overload,” Van der Walt said.
Van der Walt further encourages you to get familiar with the law, the National Credit Regulator's (NCR’s) role, and what your vital consumer rights entail.
The National Credit Act
The NCA, which became fully operational on 1 June 2007, aims to provide improved consumer information standards and attempts to promote a fair and non-discriminatory platform for consumer credit while ensuring the process is regulated.
The National Credit Regulator
The NCR was established by the Act No. 34 of 2005 and functions as the 'watchdog’ of the credit industry in South Africa, and it enforces credit bureaus, credit providers, and debt counsellors to comply with the Act.
“The NCR ensures the development of an accessible credit market - mainly involving underprivileged persons, low-income individuals, and isolated communities. And, the regulating body also prides itself on promoting consumer rights through various awareness campaigns during March each year.”
Van der Walt said that consumer rights include (note – but are not limited to) the following:
– You have the right to apply for credit.
– You have the right to the disclosure of information before signing a credit agreement.
– You have the right to receive information in language that is plain and understandable.
– You have the right to the confidential treatment of your personal information.
– Once a year, you have the right to get a free from any registered credit bureau.
– You have the right to challenge/dispute any incorrect information at a registered credit bureau.
– You have the right to apply for a legal, recommended service and process called debt review. The debt review process helps you when you can’t make ends meet and keep up with your debt payments.
Van der Walt said: “March is the perfect awareness month to familiarise yourself with your various rights and implement them when applying for credit or dealing with excessive debt.”
He recommends that people seek help from registered professionals if they find themselves over-indebted because it is one of the most important consumer rights.
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