The Credit Ombudsman has warned consumers not to fall for bogus credit providers who take advantage of their desperation to access cash.
Speaking to 702's John Robbie, Nicky Lala-Mohan said that many consumers are falling prey to illegal credit providers who forego due process and have exorbitant repayment terms.
It targets the vulnerable consumer that won't normally qualify for credit in the formal market because they are over-indebted.— Nicky Lala-Mohan, Credit Ombusdman
Listen to the interview below:
The National Credit Regulator (NCR) has issued compliance notices to various companies, warning them against the unlawful practices.
Lala-Mohan advised consumers to seek debt counselling as an alternative avenue to manage their finances instead of spiralling into more debt.
When people say blacklisted welcome and no credit checks then it's illegal. You won't, you cannot do that.— Nicky Lala-Mohan, Credit Ombudsman