Posts in category: Press Releases

This is an exercise performed by many consumers, to check whether they are in right standing with their credit. The purpose of the credit bureaux is to not only keep a record of your credit activity but to also provide you with a copy of your credit report, something that many consumers unfortunately are still not aware of.

During our consumer awareness campaigns with other financial Ombuds, government departments and regulatory bodies, the Credit Ombud came across several credit active consumers who did not know what a credit bureau is, what they do and how they can get a hold of them. Applying for credit to check their credit scores is quite a costly exercise and may even lead to further damage on your credit profile and credit score. Should they get declined upon application, then the real problem starts because they do not know how to get it fixed.

A consumer’s credit profile contains information relating to personal details, employment status and credit history. Should a consumer wish to apply for a loan or be extended credit for a furniture or a clothing account, the credit provider would request the consumer’s credit profile. This is one of the criteria set out in terms of the affordability requirements before a credit provider may extend credit to a consumer. As credit extension is about risk and costs, the best predicator of future behaviour is generally, past behaviour. Should a consumer’s credit record reflect adverse information, the consumer may be regarded as being a possible riskier debtor. For consumers applying for employment where the position requires honesty in dealing with cash or finances and the job descriptions of such positions are clearly outlined, the employer or recruitment agent may access the consumer’s credit profile.  Each time a consumer applies for credit, it will be recorded as an enquiry on their credit profile and the more enquiries reflect on your credit report, the less chances that you will be granted credit because it raises a red flag to your prospect credit providers.

The Credit Ombud would like to advise consumers on an easy and effective way to get a copy of their credit profile, where they will learn how easy it is to also dispute incorrect or outdated information on their credit profiles. Consumers are entitled to one free credit profile in any twelve-month period. Should they have already requested a report in that twelve-month period and require another report, the credit bureaux may charge them a nominal fee to obtain this. Upon receipt of their credit profile, we advise that the consumer go through the profile and where information thereon is incorrect or has not been updated, they may lodge a dispute with the different credit bureaux by contacting them back.

The National Credit Act, 2005 (NCA) requires that a consumer be informed before adverse information is reported to a credit bureaux. Adverse information belonging to a consumer shall not be submitted to the credit bureaux by credit providers and service providers without giving the consumer notice of its intention to submit adverse information concerning that consumer to the credit bureaux. The consumer must be given at least, 20 business days before the listing is placed on the credit bureaux.

Should a consumer wish to challenge adverse information submitted to the credit bureaux without having been notified by the credit provider or service provider, the consumer may lodge a dispute with the credit bureaux.

The Credit Ombud may proceed to investigate a complaint against a subscribing member upon confirmation of either of the following, ie the:

1. 20 business days that the credit bureaux have to investigate the matter has expired and the matter remains unresolved and/or you remain dissatisfied with the outcome; or
2. credit bureaux have reverted to you prior to the 20 business days with written feedback that they have credible information thus they cannot amend the information on your profile.

The types of disputes that the Credit Ombud may investigate may include:

• Inaccurate or incorrect credit information;
• Insufficient or incomplete credit information;
• Out-dated credit information;
• Notification or the lack thereof to consumers prior to listing adverse information as provided for in the NCA and more fully explained hereunder;
• Listings in respect of prescribed debt, as defined hereunder;
• Duplicate and/or double listings in respect of the same debt;
• Service disputes – i.e. non-payment of an account or debt due to a dispute relating to service to which the account relates;
• Listings in respect of claims or Court orders for damages and/or costs
• Listings following incidents of identity theft and/or identity fraud.

For a consumer to receive a copy of their credit profile they may contact the credit bureaux by calling them, sending an email or through their website. If a consumer is not certain of the credit bureaux contact details, they may contact the office of the Credit Ombud and we will provide them with contact details to the major credit bureaux: TransUnion, Experian, XDS, TPN and VeriCred.

“I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he who does not feel afraid, but he who conquers that fear.” – Nelson Mandela

Never did we imagine that there would be a year like 2020, where we would have to fight against an invisible enemy that took over our lives in within a short space of time.  It seemed that the world had succumbed to the disaster brought upon us by COVID-19 and efforts to try to stop the virus from spreading were met with resounding resistance because we continued to lose loved ones and our livelihoods.

Many industries saw a decline in profits and as a result had to close their doors. The Credit Ombud had its fair share of challenges with the COVID pandemic and though we still have our ‘doors open’, we saw a decrease of 45% in complaints and enquiries that came through the call center. This resulted in a chain reaction on our statistics as we saw a drop of 29% in the number of disputes opened and a 37% decrease in the number of disputes closed. The drop in numbers may be the result of 2020 being the first full year in which we no longer assisted consumers with credit bureau information relating to banking queries, and with non-member complaints being referred to the National Credit Regulator (NCR).

We continued to soldier on and remained positive, enforcing fairness in credit and credit bureaux matters. The office is pleased to report that results from the consumer satisfaction survey indicated that consumers rate their level of satisfaction at 85% and we also scored 90% for referrals, i.e., consumers who said they would refer someone else to our office. Despite the challenges experienced, we have saved consumers an amount of R 3,438,077.51 – this is monies that went back into consumers’ pockets. This amount is calculated by adding all the amounts where consumers overpaid or where we found some breach of the law which entitled the consumer to a refund or recalculation of their amounts owed. In these difficult times, every penny counts.

We are grateful for the constant support of the media and can report coverage in online, print and broadcast media to the Advertising Value Equivalent (AVE) of R 32,858,153.22.

Consumer education remains part of our core function as an organization and when we could not convey our message to consumers through face-to- face awareness campaigns because of COVID-19, we were supported by the media to take our message to consumers who may have found themselves in distress due to matters pertaining to their credit agreements and credit bureaux listings.   

The most common non-bank credit cases dealt with by the Credit Ombud ranged from disputes regarding consumers’ statements of account, fraud and prescription of debt. Many cases resulted in balances being written off, refunds being facilitated or assisting consumers to enter payment arrangements. Some of the most common disputes relating to credit information cases include insufficient or incomplete credit information at the credit bureaux, prescription, outdated credit information as well as fraud. The office resolved more than 60% of the disputes in consumers’ favour, signaling that consumers’ complaints were fully or partially upheld.

The Credit Ombud office is grateful to all our stakeholders. It is because of your support that we continue on this journey, and we find courage in knowing that the office is assisting with resolving disputes effectively and efficiently between consumers and the credit industry. To our members we say, thank you for trusting us with the task to assist your consumers. The doors of the Credit Ombud remain open because of the confidence you have in our capable and professional staff.

When we think of Spring, we think of new beginnings and hope. Spring is the phoenix of the 4 seasons. The season that brings back to life that which was dead or dormant. The flowers start to bloom again, the birds get chirpier, the sun gets brighter and warmer.

The Credit Ombud brings a glimmer of hope and new beginnings for consumers who may have exhausted all avenues trying to resolve their credit matters with credit providers. What the Credit Ombud does is to ensure that all disputes that come through our desks are dealt with fairly. When a consumer finds themselves at a stalemate with the credit provider, they may often feel powerless and think that there is no way that they could possibly get a fair resolution to their query. But not all hope is gone because the consumer may approach the Credit Ombud with their query so that it may be investigated fairly, independently, and honestly. We are an office that acts upon its values, which are:

FAIR

We will act in the best interest of all parties, taking both sides into consideration and considering the merits of each case carefully.

INDEPENDENT

We will not take sides and will remain impartial at all times. No individual or organization will be in a position to unduly influence us.

HONEST

We will openly deal with any issue brought before us, asking the relevant questions, and communicating clearly and transparently.

Take for instance Mr. Nkuna* who by the time he lodged his complaint with our office, was at his wit’s end as he had been trying to resolve his matter with the credit provider but was taken from pillar to post and received no assistance. He had an account with the credit provider for more than 15 years and in all those years this was the first time he encountered an issue with them. And despite his countless efforts to resolve the matter, it seemed as though his cries were falling on deaf ears until he came knocking on our doors asking for assistance. His complaint was that now that the account had been sold to another entity, there was a miscalculation on his account and the balance was incorrect. The Credit Ombud then did an extensive investigation where continuous communication took place with us and the credit provider and the consumer. We found that due to the account being in arrears, the terms of the agreement changed to an extended payment plan, which the consumer was made aware of. The credit provider further made available to us the statement of account which was inclusive of all transactions from the time prior to the account being bought over until after the migration happened. The consumer made further payments, paying off the arrears and the total balance, and a refund was due to the consumer. After the intervention of the Credit Ombud, both parties were happy with the outcome and although at first the consumer was threatening to close the account because of this dispute, he opted to continue with his relationship with the credit provider.

This is the reason why we encourage consumers to check their statement of accounts on a regular basis. There are certain things which the credit provider might miss or at times there may be a miscommunication between the two parties.

With the intervention of the Credit Ombud, it does not end with investigating only but we take each opportunity as a teachable moment, leaving the consumer with more knowledge of their rights and most importantly their responsibilities too. We had a case lodged by Ms Langeveldt* where her dispute was that 3 accounts that had prescribed were listed on her credit report. She had lodged her dispute with the credit bureaux and was not satisfied with the outcome from the credit bureaux and therefore referred her complaint to our office. She requested that these accounts be removed from her credit report. Let us not forget that according to the Prescription Act 68 of 1969, a debt is prescribed if during the past three years the consumer did not admit to owing on the debt, either verbally or in writing; they had not made payment towards the outstanding amount and summons was not issued and served on them. We contacted the credit provider and requested that they provide us with relevant information to prove whether the allegations were valid or not. Upon our investigation we found that the consumer had purchased goods with the credit provider on 3 separate occasions and furthermore agreed to combine the three instalments into one agreement and pay one instalment instead of three. The last payment for all three accounts was made within the three-year period, proving that the debts had not prescribed therefore the information could not be removed from the consumers credit report.

Consumers need to make a note of changes that happen with their accounts, where a credit agreement has been adjusted or changed, the consumer should request for all this information in writing and keep a record of it.

We also investigated a fraud case for a consumer. Mr Moloi* had been impersonated by a fraudster. This happened during a loan application which he made but did not go ahead with. He only realised this when the credit provider started calling him demanding payment on a loan that he had allegedly taken with them. Mr Moloi informed them that he had never signed any such agreement with the credit provider. He went to the SAPS to open a case of fraud and lodged his dispute with the credit provider, and he sent all documents which they requested from him for them to do their investigation. The documents requested included an affidavit and bank statements. Once his complaint was lodged with the credit provider, he did not receive any feedback. He was, however, sent a letter of demand and the phone calls demanding payment ensued. Mr Moloi approached our office and requested that we assist him to resolve this matter, which we did. We sent the complaint to the credit provider, requesting that they provide us relevant documentation that would prove whether the consumer entered into the credit agreement with them or not. Our office requested copies of the original contract and statements of account. After the credit provider completed their internal investigation, they came back to us confirming that the account was indeed opened fraudulently. This gave the consumer the relief for which he was looking because he had thought that he had been negatively impacted with adverse information reflecting on his credit report. The credit provider assured the consumer that the matter had been resolved and account was closed. The telephone calls demanding payment also ceased.

All the above consumers acted swiftly and where a case was not resolved in their favour, they were provided with credible evidence based on an investigation been done by our office. We were their hope in situations which they may have deemed hopeless as they were not getting the assistance which they required from the credit provider or credit bureau.

We are reminding consumers and urging them not to keep quiet when they find themselves in credit disputes. Knowing that there is an office that offers their services for free to consumers who may have non-bank credit agreement and credit bureau information disputes, is a comfort.

*The names used have been changed to protect the privacy of the consumers.

It is not too late to teach an old dog new financial tricks!

It is true, most of our money habits have been learned from our elders – those who came before us and were the breadwinners at home. If you grew up in a home where drawing up a budget and planning for any expenditure was a norm, then you would have also been likely to have also inherited this habit and would also be able teach it to the next generation. Ideally, this would be in a perfect world. Many of us may have inherited a bad relationship with money/finances where we are in debt, living above our means, competing with the Molefe’s even when we didn’t have the same income as they did and being financially overburdened and depressed.

What are the money traditions that we learned from our elders?

• Savings: were we taught about the importance of saving? Were we taught of the different financial facilities that are available to us to help us with our savings plan? Most of us grew up in homes where our parents would be in stokvels. We may have not quite understood the purpose of the stokvel, but we knew that at some point mom would have a lump sum of money and she would say that it’s her turn at the stokvel. This is another great method to save. Teach your children about the stokvel you are involved in and how it works.
• Credit: were we ever taught why you enter into credit agreements? Credit is not free money. It is money you need to pay back and it must be paid back with interest. To enter into such an agreement needs that you sit down and PLAN for it so that you do not find yourself being listed as a non-payer at the credit bureaux. Before you sign on the dotted line, you should know what the terms and conditions of that agreement are. This requires time. Never be in too much of a hurry and too desperate that you do not consider what you are getting yourself into. Many of us still do not understand what the functions of the credit bureaux are or how your credit profile and credit score work. We do not even take advantage of the free credit profiles we can receive from the credit bureaux in every 12-month period.
• Budget: did we ever see any of our parents sit and work on their monthly budget? We still do not want to budget because it is not a fun activity. But guess what, without your map, you will take 40 days and 40 nights to arrive at your destination that you should have arrived at in 4 days. Your budget helps you to plan, it helps you to recover.  

We clearly have a lot to still learn and for the next generation to not only be technologically savvy, but also financially savvy.

For some of us the only lesson we learned about money was that our parents did not have any money. Each time you would ask them for something that required them to take money out, they would respond with “We don’t have the money”. To compensate for all those disappointments that came with not having money, we now overspend and end up spending recklessly and land in even bigger financial problems. Sadly, this perpetuates the cycle of bad money habits.

Finance was never a topic that was discussed at family meetings. For some who were fortunate and grew up well off, your parents may have not taught you how to budget because they felt that they were providing therefore there was no need for you to worry about money because they ‘had it covered’. Money was never and is still not an easy dinner table topic. Whether with friends, family, or colleagues, we never want to discuss money, especially when we are in trouble financially. The hard truth about money is that we only care about it when we want to use it for that moment. We never want to plan or face the harsh reality of mistreating it.   

So how do we start creating new traditions when it comes to our finances that can be carried on to the next generation?

1. Communication – we need to start talking about money at home. Teach children how to save and how to positively use credit in a practical and age-appropriate way.

Example: when giving your children an allowance, teach them that for every month that they save some or all their money, you will give them 10% of that money back at the end of the year. Similarly, if you borrow their money, you will then pay it back with an interest of 5%. That way you teach them about credit too. Teach them that if you do not pay back that money at the time you promised to pay it back then they can write it down in a file to track your payments that you are a late payer. They can use that information in your file to decide whether they will lend money to you again should you come back and borrow from them. Already you have taught your child about the relationship between a consumer and a credit provider and have added a lesson about the credit bureaux keeping consumers credit profiles.

2. Planning – whether it is planning for a holiday or for home renovations, you need to have a plan. As consumers we should have a vision for our money; where it is that we want our money to go or what do we want to achieve with our money? Have a timeframe of when you would like to achieve these plans. Your plan could be about how long you will take to pay off your debts. The power is in sticking to your plan. You take that same strategy and teach it to your children.

3. Dealing with bad spending habits – If you have certain triggers that push you to spend money that you did not plan on spending, then you need to be practical about dealing with those triggers. Write them down and find alternative ways to avoid spending.

4. Budget – this is a big one. We can plan and have the greatest visions, but if we do not do our monthly or even weekly budget, we will go off track as we will not be aware of our income vs expenditure.

5. Leave your children with assets and not debt – building wealth for our children should be the ultimate goal. We do not want to leave this world having debt and in the unfortunate event where we may have not had credit life insurance, we leave heap amounts of debt to our children, and they get left behind with these burdens. We grew up hating debt because we saw how our parents suffered because of it. Credit is a tool and therefore should be used with caution which is brought on by knowledge.

6. Your retirement, your responsibility – our children should not be our retirement plan. Speak to a financial advisor who will assist you to have secure plan for your retirement so that you may maintain your current lifestyle or have a better one.

These are the life skills we want our children to learn. Finances should not be a taboo subject. So, this Heritage month as we celebrate our beautiful different cultures and diversity that have made us into this wonderful, cultured country that we are, let us also not neglect how far we have come and how much further we can go when we create new traditions of being financially free.  

As we approach the festive season it is important to remind ourselves that credit is wonderful when used for its intended purpose. With a proper checklist prior to applying for credit, you will sure avoid getting over-indebted.

The National Credit Act (NCA) gives direction to credit providers when it comes to over-indebtedness and reckless lending. When a consumer applies for credit, there are guidelines which the credit provider should follow which secures them from lending money or providing credit recklessly to the consumer.

Over-indebtedness is when a consumer is over committed financially, and he/she is unable to take on more debt. To determine this the credit provider would have to do an evaluation on the consumers finances, taking into consideration already existing credit agreements and the income and expenditure of the consumer. They are also required to check past debt repayment behaviour, reflecting on the consumers credit profile, to determine whether the consumer can satisfy in a timely manner all the obligations under all the credit agreements to which the consumer is a party.

Over-indebtedness is rife in South Africa, and there are several contributing factors to the hike in the numbers of over-indebted consumers. One which we would like to tackle as the Credit Ombud would be to assist consumers in making informed and intent decisions before applying for credit – taking preventative measures. Getting stuck in a debt trap causes frustration that may lead to depression because you feel that debt has overpowered you and you no longer have any control. We want to teach the consumer to take that control back. A sure way for a consumer to avoid over-indebtedness is to do a self-evaluation of your current financial state.

So, what is it that one must consider prior to applying for credit to avoid being over-indebted? Here is a checklist for consumers to use before they go and apply for credit:

1. Distinguish whether need or want? – Credit is a tool. A tool that is meant to assist in advancing in one’s life. Ideally, we would purchase everything in cash however with the big purchases such as cars and houses, we need the assistance of a credit provider. Therefore, before you even go and apply for credit, ask yourself whether you NEED to acquire the credit or is it a want. At times what we want can wait, so you can either save up for the item you want or lay-by it. If you need to draw up and list of pros and cons, then do so. But do not go and apply for credit if you have not put a plan in place on how you intend to pay it back.    
2. Affordability – Credit providers are required to do an affordability assessment for every consumer who applies for credit. What the Credit Ombud advises is that the consumer does their own assessment at home before they approach the credit grantor. You will be required to do a realistic budget, one where you are honest with yourself about your spending habits. Your budget does not only entail the major monthly expenditures and commitments such as school fees, debts, groceries, transport, etc., but it should include your entertainment, your beauty treatments, and all other extras which we enjoy and spend money on. Even the month-end takeaways. This exercise needs for you to be honest with yourself. Get a 3-month bank statement and see how and where you spend your money, your bank statement can never lie to you. Becoming your own personal accountant will help you to account for every cent spent.   
3. Interest and other added fees – Part of that affordability is knowing and understanding the interest and other added fees which is charged and make up the total cost of credit. a monthly installment is inclusive of the interest and other added fees, which the consumer is made aware of when applying for credit. Before a consumer puts their signature on the dotted line, the credit provider needs to have been provided with the total cost of credit and understand what the total monthly installment will be. Part of the purpose of the NCA is to promote a fair, transparent, competitive, sustainable, responsible, efficient, effective and accessible credit market industry – when applying for credit it is advisable that various credit providers are approached with the aim of obtaining a competitive interest rate and the best price possible. A consumer is well within his/her rights to compare these prices in reaching an informed decision.
4. Cooling off periods – Before committing to a new credit agreement, consumers must know and understand fully what they are binding themselves to. Prior to the conclusion of a credit agreement, consumers must be given a pre-agreement statement and quotation. The statement is a document that details the terms and conditions of the credit agreement the creditor is offering. The quotation disclos­es all the costs of the credit, showing the principal debt, the repayment schedule, the interest rate, other credit costs and the total cost of the proposed credit agreement. If you agree to and sign these documents, these become the credit agreement. The National Credit Act requires that credit providers must disclose and explain the total cost of credit to consumers so that they understand what they are agreeing to. What is important to note is that consumers do not have to accept the offer in the pre-agreement and quotation agreement. Consumers have up to five business days to consider the offer and can decide not to accept the offer of credit. The quotation is valid for five business days, meaning that the consumer has some time to consider whether to enter into the proposed credit agreement once they understand the cost implications (and own affordability). At any time before the expiration of the five-day period, consumers may hold the credit provider to the terms and conditions as disclosed in the pre-agreement statement and quotation.
5. Credit bureau profile – Again, we remind consumer to check their credit profile at the credit bureau before they apply for credit. When was the last time you checked your credit profile? The NCA does give provision to the consumer to get a free credit report from each credit bureau in a 12-month period. Something we seldom do is to check our credit profiles before we go and apply for credit. How does it help you to check your credit profile before applying for credit? Well, you do not want to be turned back by the credit provider due to you having a low credit score. And this may even be because of an outdated account which may be reflecting on your credit profile. So, if you check your credit profile before you go and apply for credit, you can dispute any incorrect or outdated information with the credit bureau where the information is reflecting, which may prevent a successful credit application. Once you have checked your credit profile and have updated all information that would have affected your chances of obtaining credit, then you will be closer to getting that credit.
6. Credit life insurance – Let us remember that credit life insurance is there to protect the consumers credit obligations should there be an event beyond your control where you won’t be able to earn an income. You do not have to accept the in-house insurance offered by the credit provider. Shop around to find a service provider who will offer you the best benefit that will be suitable to you. Several consumers are not even aware that they have credit life insurance. They continue to pay monthly installments which are inclusive of the credit life insurance however when they come across a situation which requires them to get the assistance of the credit life insurance, like retrenchment, they do not submit claims because they aren’t aware that they have this benefit. Read the terms and conditions to that insurance and understand them for your own protection.

Lastly, what is also important is to know where to go when you need help. The Credit Ombud office provides FREE assistance and advice with all credit bureau and credit agreement related matters.

• Overcharging of interest or fees
• Prescription of debt
• Reckless lending
• Debt collection issues
• Fraud
• Emolument attachment orders/Garnishee orders
• Unfairly or incorrectly listed at the credit bureau (judgments, defaults, etc.)

We have all been receiving the emails. We’ve added to our ‘Wishlist’ and even have first preference on all ‘early bird’ specials, just so we don’t miss out on all the wonderful Black Friday specials. Even if we want to avoid the ‘Black Friday’ euphoria, it is hardly a frenzy that we can ignore. 

During ‘Black Friday season’ we are already in the festive mood and are likely to increase our spending. Statistics from the National Credit Regulator (Consumer Credit Market Report) show that for the quarter ended June 2019, credit facilities which consist mainly of credit cards, store cards and bank overdrafts increased from R20.26 billion to R21.11 billion (a quarter on quarter increase of 4.1%) while in December 2018 (a quarter-on-quarter increase of 15.00%). This further indicates that as consumers, we are likely to increase our usage on credit facilities during this time of the year. We should not forget other obligations, such as back to school expenses, and other expenses that normally come with the new year. We should be proactive and not find ourselves being in the usual corner of ‘Janu Avenue and Worry Street’. 

The office of the Credit Ombud advises that as consumers we should rather plan our expenditure prudently and make provision for the expected and often times, unexpected increase in expenses for the new year, as this will assist in avoiding default and the negative consequences of being ‘blacklisted’ at the credit bureaux. While looking out for good deals we should also be on the lookout for deals which might lead us to long-term credit depression. Using credit on Black Friday spending, should be the last resort, rather have a budget and be disciplined. Be money-savvy in the run-up to Black Friday; we should check our credit profiles, understand our spending limitations and prepare to walk away from a deal that is unnecessary. 

Should you have failed to make a budget and have no other alternative or see the need to purchase using credit, keep your monthly obligation according to your credit agreement and pay your monthly installment. If you are able to pay a bit more, this will help to pay off the debt faster. 

Consumers can contact the office of the Credit Ombud for FREE assistance if they experience any issues relating to credit agreements with non-bank credit providers such as the clothing and furniture retailers as well as micro-lenders, fraudulent listings, emolument attachment orders (“garnishee orders”) or general complaints about their credit bureaux listings.

The office can be contacted on 0861 66 28 37; on the website www.creditombud.org.za; email us at ombud@creditombud.org.za or send a sms to 44786 and we will call you.

The National Credit Regulator (NCR) and the Credit Ombud have signed a Memorandum of Understanding (MoU) facilitating co-operation and collaboration in achieving the objectives of the National Credit Act 34 of 2005 (the Act) and specifically the resolution and investigation of disputes between non-bank credit providers, credit bureaux and consumers.

The NCR is responsible for regulating credit providers and is tasked with carrying out education, research, proposing policies to the Minister, registration of industry participants, investigation of disputes and ensuring the enforcement of the NCA 34 of 2005. The Credit Ombud is a voluntary, non-statutory body; afforded recognition under Section 11 of the Financial Services Ombud Scheme Act, 2004 and is an Ombud with jurisdiction in terms of the NCA; which engages in the resolution of disputes arising within the non-bank credit industry and consumers.

Section 139 of the NCA provides that the NCR may, upon acceptance of a dispute, refer such dispute to an Ombud with jurisdiction for the purpose of assisting the credit provider and consumer to resolve the dispute. The NCR agreed that all disputes against members of the Credit Ombud will be referred to the Credit Ombud for resolution. The Credit Ombud resolves disputes between consumers and credit providers relating to credit agreements and credit information, this covers all disputes of clothing and furniture retail accounts, micro lenders, and other non-bank loans.

The MoU will see the NCR and Credit Ombud work together on several areas of co-operation.  The main elements include the following:  

• As an alternative to disputes being investigated by the NCR against subscribing members of the Credit Ombud, the NCR shall refer non-bank credit agreement and credit information matters to the Credit Ombud;
• Quarterly reporting to the NCR by the Credit Ombud regarding the resolution of disputes referred by the NCR;
• Capacity building and training programmes;
• Outreach initiatives and credit industry awareness and education;
• Research and information sharing.

The services offered by the Credit Ombud is FREE to consumers wanting to resolve their disputes arising from within the non-bank credit industry. Consumers are not bound by the ruling or decision of the Credit Ombud and may refer a matter to the NCR.

Working together is pivotal to building and maintaining the spirit and objective of the NCA.

Finance Minister, Tito Mboweni delivered the 2019 medium-term budget speech, which left a bit of a bitter taste in our mouths. However as bitter as it may have been, it is the truth we needed to face in order to make the necessary changes in our daily lives and adapt to new ways of spending. 

We are a nation that loves life and everything good which comes with it. We spend, and unfortunately at times even to our own detriment as we spend more than we earn, which is one of the points our Finance Minister continues to emphasize. How then do we enjoy life, especially during the festive season without having to overspend and find ourselves in the usual corner of ‘Janu Avenue and Worry Street’? 

Throughout the year we have been working hard and it is during this time that we want to enjoy ourselves with our families without having to worry about our bank balances. This is when we start planning, which we aren’t crazy about because it is after all the festive season, we only want to have fun with no worries. To ease yourself into the festive season, set out a ‘splurging plan’ (the word ‘budget’ seems to intimidate a lot of us). Open a savings account where you could transfer some of your funds into, to either use for your splurging or to save for January. Getting into the new year debt free is something we should aim at. It alleviates the stress of the January responsibilities, therefore use your bonus/thirteenth cheque to set yourself free from the chains of debt. Don’t allow your debt to put so much of fear in you that you are too scared to scrutinize all your statements and credit reports. The same initiative you took to apply for that credit, take that same initiative to stay on top of your credit life and not letting anything fall through the cracks. 

When does the Credit Ombud help? 

Should your statement of account obtain any information which you would like to dispute, you may approach your credit provider and lodge your dispute with them. You will then allow them 20 working days to investigate and only after the 20 working days, should you either not get a response or aren’t satisfied with their outcome, you may contact the Credit Ombud to log your dispute with a reference number from the credit provider. A similar process applies when logging a dispute at the credit bureau. Once you have obtained your credit report and find that there is some information which you would like to dispute, you will contact the credit bureau and request 

to log a dispute. Upon logging your dispute, the bureau will provide to you a reference number and you will allow them 20 working days to investigate your dispute. After the 20 working days, should you not have received any feedback from them or you aren’t satisfied with their outcome, you may contact the Credit Ombud to log your dispute. 

Set time aside for yourself, where you will focus on your finances and to fix what needs to be fixed, as taking care of your finances is also part of self-care. Take charge, be in control and steer your finances in the direction that will allow you to build a future for yourself. Your income should be a steppingstone to a better life, so make those tough but necessary decisions and be disciplined. 

Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver. – Ayn Rand 

Consumers can contact the office of the Credit Ombud for FREE assistance if they experience any issues relating to credit agreements with non-bank credit providers such as the clothing and furniture retailers as well as micro-lenders, fraudulent listings, emolument attachment orders (“garnishee orders”) or general complaints about their credit bureaux listings.

The office can be contacted on 0861 66 28 37; on the website www.creditombud.org.za; email us at ombud@creditombud.org.za or send a sms to 44786 and we will call you.