How to avoid falling victim to loan sharks (and how to report them)

702 and CapeTalk’s Africa Melane speaks with JustMoney spokesperson Sunette Ansara.

Listen below:

Predatory lending (loan sharks) refers to any loan practices that are abusive or unfair to the borrower.

Often unregistered, these establishments will grant loans to people who won’t otherwise get approval from a credit provider.

Due to desperation, interest rates can reach highs of 400%.

Lenders often ask for your ID card, passport, or even your bank card that you receive your salary on as collateral.

“That is illegal… act as fast as you can, report this to the police, report to the National Credit Regulator, get a replacement ID or passport from the Department of Home Affairs and let them flag it… identity theft is rife.”

– Sunette Ansara, JustMoney spokesperson 

Before rushing to take out a loan with just anyone, Ansara recommends checking that they are registered with the National Credit Regulator (NCR).

You can also report unregistered establishments to the regulator. 

“Just because they have a nice NCR certificate in their front room doesn’t necessarily mean that they are legitimate.” 

– Sunette Ansara, JustMoney spokesperson 

Scroll up to the audio player to listen to the discussion.