fake loan scams

Six smart tips to avoid fake loan scams

The National Credit Regulator (NCR) has issued a public warning against fake loan scam tactics. The NCR has warned consumers to be wary of fake credit providers who attempt to entrap consumers into loan frauds.

These scams typically target those who are in distressed financial circumstances and looking for a loan, using slogans such as “blacklisted” or “debt review clients welcome” said Jacqueline Peters, manager: Investigations and Enforcement at the NCR. The increase in these types of fake loan scams comes at a time when credit approvals have decreased and consumers are finding themselves to be financially stretched.

Here are six smart tips to avoid fake loan frauds:

  1. Look out for the name on all e-mails, in case it is a ‘clone company’ pretending to be a real credit provider.
  2. Do not pay any upfront fees to release your loan. The NCR does not allow credit providers to request upfront payments, if the ‘credit provider’ makes this request, do not engage further and report this to relevant authorities, such as the NCR or the SAPS.
  3. Be aware of platforms and hidden fees included for sourcing a loan.
  4. Do not be pressured into acting quickly. A genuine credit provider will not mind waiting if you want time to think and compare the costs of credit by using a quotation.
  5. Do not engage with credit providers who do not conduct affordability assessments.
  6. Never borrow from an unregistered credit provider.

Iemas financial services is a registered credit provider. In addition to offering comprehensive financial products and solutions, Iemas also offers free financial workshops at all our participating employer groups, which assist our members with managing their finances responsibly. Contact us to find out more or visit our website 0861 043 627 on here

Adapted from the media release issued on 10 January by the NCR entitled: National Credit Regulator issues a public warning against fake loan scams.

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