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Consumers are urged to verify the credentials of anyone offering debt review services due to the rise in cases of people placed under review without their knowledge or consent.
According to debt counsellors, scammers often target financially vulnerable consumers with promises of lower interest rates, reduced monthly repayments or debt write-offs.
Sometimes they may claim to be acting on behalf of the National Credit Regulator (NCR) or suggest that consumers have been selected for special debt-relief programmes.
Benay Sager, executive head of DebtBusters, said consumers should always conduct basic checks before sharing personal information or agreeing to any debt review process.
“Consumers should ask for the debt counsellor’s full name, company name and physical office address. A legitimate debt counsellor should be registered with the National Credit Regulator and be able to provide proof of registration,” he said.
Sager said consumers can search for a debt counsellor’s details on the NCR’s register of registrants and verify whether the individual and company are legally registered.
“Before agreeing to any service, consumers should search the company’s name online. Check whether the company has a website, a physical address, customer reviews and a visible online presence,” Sager said.
He said one of the biggest red flags is an unexpected phone call from an “agent”.
“Some falsely claim that the NCR has shared consumer information with them.”
Sager warned that the NCR would never provide consumers’ personal information to third parties for marketing purposes.
“If a caller claims you are being overcharged or have been selected for a special debt-relief programme, ask for the company details and end the call.
NCR legal adviser Timmy van der Grijp urged consumers to be vigilant when approached by people offering debt relief.
“Consumers need to take responsibility for the decisions they make. When someone phones you and says they can cut your interest rate and make you pay 60% less, if it sounds too good to be true, it probably is.
“A big problem is that many of these people are not registered with us. They use electronic signatures and tell consumers they only need them for a credit report or another purpose. They then use that same signature on debt review documents and later claim the consumer agreed to be placed under debt review,” he said.
He said consumers who have been affected can reach out to the NCR to get help.
“Where consumers have genuinely been placed under debt review without their consent, they can lodge a formal complaint with the NCR. Our office will investigate the matter and, where appropriate, our legal team will find a way to remove them from debt review,” he said.
Van der Grijp explained that many consumers go under debt review thinking they are going to save money. Later, when they realise they can no longer use their credit cards, overdraft facilities or store accounts, they start questioning the process and seeking assistance.
NCR can be reached on 0860-627-627 or 011-554-2700.
Sowetan
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