Many South Africans would not be able to obtain the goods or services they need were it not for credit agreements and other loan arrangements.
But the relationship one has with their credit provider can get complicated, particularly when one reneges on the set payment plan.
(Also read our article: National Credit Regulator takes aim at Lewis after claims of illegal action)
Takalani Mudau, Acting Manager for Complaints at the National Credit Regulator (NCR) speaks to us about how to deal payment arrears.
If the consumer defaults on his or her they can make an arrangement with their credit provider, however, it is not a forced arrangement but most providers do accept. If they don’t, they need to follow certain legal procedure.— Takalani Mudau, Acting Manager for Complaints at the NCR
Mudau briefly touches on the legal action to be taken by the NCR against Lewis Stores and Monarch Insurance for mis-selling employment and disability cover.
(Also read our article: Major breaches of National Credit Act at Lewis furniture stores exposed)
Kieno Kammies spoke with Quintin Zimmerman, Director and civil rights lawyer at Liddle and Associates, about the rights of debtors when clients struggle to meet their payment terms.
Zimmerman says that although South Africans are one of the most protected citizens in the world in terms of consumer rights, they don't have access to knowledge about their rights and lack the funds to enforce them.
Listen to the full conversation from CapeTalk's Breakfast with Kieno Kammies:
This article first appeared on 702 : How to deal with financial institutions when in payment arrears