Growing concern over continued violations of protection from unfair lending practices
The National Debt Advisors has reported that more than 42 percent of credit-active consumers are struggling to meet their debt obligations.
Debt Money
JOHANNESBURG - As South Africans commemorate Human Rights Day, the country's deepening debt crisis has brought to the forefront a critical issue that affects millions of citizens.
The national debt advisors have reported that more than 42 percent of credit-active consumers are struggling to meet their debt obligations.
The National Credit Act of 2005 was enacted to protect consumers from unfair lending practice however, head of the national debt advisors Sebastien Alexanderson said the consistent violation of the right to protection from unfair lending practices and debt abuse is a call for concern.
"Financial freedom is a basic human right but millions of South Africans including social grant recipients remain trapped in debt cycles due to predatory lending and reckless credit practices".
He added that the most vulnerable groups are social beneficiaries with precatory lending practices target these individuals who receive a steady and guaranteed income.
He said while the NCA is accountable for protecting clients, consumers should also play their part.
"While financial institutions must be accountable for consumers, they also have a key responsibility in managing their credit wisely," said Alexanderson.