The National Credit Act of South Africa provides numerous financial products. Some of these products include personal loans, credit cards, mortgages, instalment agreements and leases. The sole purpose of the NCA is to eliminate reckless lending to South Africans. In this article I will briefly explain some of your rights when you apply for a personal loan.
The NCA has stipulated that all credit providers should do a thorough investigation before giving anyone a loan. People should be able to afford the personal loan and understand the terms, rates and conditions of their loan or credit. If the credit provider fail to undergo the correct assessment the loan will be seen as reckless.
The credit provider will be responsible to review the customer’s income, credit, debt repayments and expenses in order to see whether the applicant can afford the loan. It is important that you know that the information should be 100% correct and truthful, it is important that the correct information are given to the lender, so that they can detriment whether you are able to support the loan. Credit providers have the right to access your credit information and history.
Next I will explain the consumer rights under the National Credit Act of South Africa. If you are in desperate need of money, but you don’t know whether you can afford a personal loan, you are allowed to ask for a pre-assessment to see whether you will be able to afford the loan. You also have the right to request a quote that must be valid for at least five days. You have the right to accept or reject the quote.
If you have a bad credit score, then it's highly unlikely that you will get a loan. Get your credit score first and see where you can improve.
You have the right to receive information on your credit information in a language that you understand. You also have the right to question any of the provided information if you feel that some of the info might not be correct. You are able to receive a free flash card of your credit report once a year to see where you stand on the credit ladder. The credit companies are not allowed to advertise their products at your own home or property with out prior notice and you must first allow them the opportunity.
It is clear the consumer is protected against the credit providers. It is of utmost importance that you know and understand your rights before approaching any credit provider. Also make sure that you make sure that the chosen lender is a registered credit provider.