Watch out for fake credit providers during lockdown
ALEXANDRA – Regulator warns against paying upfront loan fees.
Citizens should be wary of criminals posing as registered credit providers in order to cash in on their desperation for money during the lockdown.
The warning from the National Credit Regulator (NCR) follows reports it has been receiving about scammers who demand upfront fees from consumers who are desperate for money.
Once the fee is paid, the criminal who poses as a registered credit providers, disappears without providing the loans.
In a statement, NCR’s Chief Executive Officer, Nomsa Motshegare, said the scammers advertised themselves through SMS or email messages.
“The condition for an upfront fee is unlawful,” said Motshegare.
“Victims who have paid the fees should open criminal cases with the police. Only credit providers registered with the regulator are allowed to provide loans and consumers should check their details before making applications.”
