The debt counselling scam is on the increase in South Africa warns consumer ninja Wendy Knowler.
Bruce Whitfield talks to consumer journalist Wendy Knowler about the debt counselling scam rampant in South Africa.
– The debt counselling scam is rampant in South Africa, warns consumer journo Wendy Knowler.
– It involves bogus debt counsellors or call centres linked to registered debt counsellors that lure consumers into debt review by calling them and ‘unleashing a pack of lies’.
We need to be hyper-alert around being scammed as consumers in the run-up to Christmas Wendy Knowler reminds us on The Money Show.
One scam that’s on the increase is the misleading promise of “debt counselling”.
Knowler explains this is when Bogus debt counsellors or call centres linked to registered debt counsellors lure consumers into debt review by calling them “and unleashing a pack of lies”.
They promise automatically reducing interest rates, debt write-offs, claiming to be able to remove people from debt review and issue debt review clearance certificates outside of what is permitted in law.
Wendy Knowler, Consumer journalist
According to the National Credit Regulator (NCR), they go as far as cloning registered debt counsellors’ registration numbers she says.
RELATED: Debt counsellors NOT mandated to contact consumers on behalf of credit regulator
The law requires that you be over-indebted to be placed under debt review but many people who in fact aren’t, find themselves conned into debt review. And they often don’t understand what this entails.
Lodge a formal complaint if this happens to you urges the NCR:
If consumers believe they have been placed under debt review without consent or that they have been misled, they should lodge formal complaints with the NCR and not approach a debt counsellor, entity or party promising to assist with debt review removal.
National Credit Regulator
Important points:
– Debt counselling is not a savings mechanism, but a debt relief measure intended to assist over-indebted consumers
– When under debt review, you will not be able to apply for further credit until you have paid up your debts
– Do not give out your personal information and/or money to strangers
ONLY interact with credit providers and debt counsellors registered with the NCR, Knowler emphasizes.
To verify registration, go to ncr.org.za and click on the registrants tab.
Scroll to the top to listen to one hair-raising account of a consumer who was scammed into debt review
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