Streaming issues? Report here
Africa Melane 1500 x 1500 2020 Africa Melane 1500 x 1500 2020
Early Breakfast with Africa Melane
04:00 - 06:00
volume_up
volume_mute

Up Next: Breakfast with Bongani Bingwa
See full line-up
Early Breakfast with Africa Melane
04:00 - 06:00
Home
arrow_forward
Business
fiber_manual_record
Local

Millions of South Africans aren't aware they have credit life insurance cover

1 October 2020 7:38 PM
Tags:
The Money Show
Bruce Whitfield
Wendy Knowler
consumer protection
credit life insurance
Financial Sector Conduct Authority
FSCA
credit life insurance policy

Over a quarter of credit life insurance policy holders have no idea they're paying for that protection, reports Wendy Knowler.

Do you ask questions and check all the paperwork when you sign up for a new store account?

Perhaps you're one of the 5 million South Africans who, unknowingly, took out a credit life insurance policy.

A survey by the Financial Sector Conduct Authority (FSCA) revealed that 26% of credit life policy holders have no idea that they have that protection.

This also means they won't know they have this claim option to help them if they land in financial trouble.

Client signing a contract. Image: pixabay.com

In the majority of these cases, people signed up for the policies when opening store accounts or taking out unsecured personal loans.

What happens at the point of sale is problematic and constitutes a longstanding problem says Caroline da Silva, the FSCA's Divisional Executive of Regulatory Policy.

Bruce Whitfield interviews consumer ninja Wendy Knowler.

It's not surprising to me because I've spent many years tracking this... It's around the store credits, when people take out a loan for a fridge or a bed and it's this whole wad of documents and they aren't reading through everything and it isn't being explained to them... Another big danger area is unsecured personal loans.

Wendy Knowler, Consumer journalist

It's a tragedy that 26% of people who sign up don't know they can claim when they're in dire straits, she says.

Credit life insurance is designed to cover a consumer's monthly payments on their credit agreements, be it a a personal loan, credit card, car finance even if you opt for it.

Wendy Knowler, Consumer journalist

If they're retrenched, disabled, or die... it just gets written off. In the recent National Credit Act amendment these credit life policies have to cover loss of income as well, which was perfect for the pandemic.

Wendy Knowler, Consumer journalist

There needs to be education around this and Caroline da Silva said the hot, burning issue is these credit providers really need to simplify and simplify again, the wording of their contracts and tailor these products for people's actual needs.

Wendy Knowler, Consumer journalist

For more detail, listen to the conversation on The Money Show:


1 October 2020 7:38 PM
Tags:
The Money Show
Bruce Whitfield
Wendy Knowler
consumer protection
credit life insurance
Financial Sector Conduct Authority
FSCA
credit life insurance policy

More from Business

train-widejpg

Consumer goods sector is consolidating - and supply chains are de-globalising

23 October 2020 2:19 PM

The pandemic has hastened much-needed consolidation and made clear the value of bringing supply chains closer to home.

Share this:
Read More arrow_forward

Clicks logo

Clicks reports healthy rise in profit, back to normal sales after hair ad fiasco

22 October 2020 8:12 PM

Sales of vitamins and supplements are offsetting drop in demand for cold and flu remedies says Clicks CEO Vikesh Ramsunder.

Share this:
Read More arrow_forward

happy-at-workjpg

Picked the wrong job? There's a company that pays you to quit if you're unhappy

22 October 2020 7:06 PM

'If you're happy at work it rubs off on your colleagues and clients' says Gideon Galloway, CEO of King Price Insurance.

Share this:
Read More arrow_forward

Light bulb, electricity, load shedding.

Just another promise? Load shedding to ease from September next year says Eskom

22 October 2020 6:42 PM

Bruce Whitfield interviews Rhulani Mathebula (head of Generation) on Eskom's turnaround plan and the future of Koeberg.

Share this:
Read More arrow_forward

Side hustle 123rf 123rfbusiness 123rflifestyle small business

How to have many sources of income – not just your salary

22 October 2020 2:57 PM

From side hustles to investment income; Mduduzi Luthuli (Luthuli Capital) on creating multiple streams of income.

Share this:
Read More arrow_forward

jozi-skylinejpg

Consumer goods sector: How the next 5 years may play out

22 October 2020 2:17 PM

Covid-19 has changed the consumer goods sector. Some changes will reverse, but others are permanent and may even accelerate.

Share this:
Read More arrow_forward

kabwe-map2jpg

Anglo American being sued for lead poisoning over decades in Zambia

21 October 2020 8:25 PM

A class action suit holds Anglo responsible for lead poisoning from the Kabwe Mine, affecting 'generations of children'.

Share this:
Read More arrow_forward

tab1png

Bye-bye TaB: Coca-Cola to can its original diet drink after nearly 60 years

21 October 2020 7:29 PM

TaB may qualify as a "heritage brand" but nobody drinks the stuff anyway! - Bruce Whitfield in conversation with Andy Rice.

Share this:
Read More arrow_forward

Maize field mealie farm farmer agriculture 123rf 123rfbusiness 123rflifestyle

Regenerative agriculture - an idea 12 000 years in the making

21 October 2020 7:15 PM

The future of agriculture may draw more from its past than the present

Share this:
Read More arrow_forward

Mboweni

EFF gives Mboweni 7 days to reverse surprise appointment of controversial journo

21 October 2020 7:04 PM

Tito Mboweni posted a pic of a National Treasury team which includes Ranjeni Munusamy, a week before he delivers the MTBPS.

Share this:
Read More arrow_forward

More from Local

Law

Government ropes in retired judges to deal with backlog of cases

23 October 2020 5:03 PM

Department of Public Service and Administration Director-General Yoliswa Makhasi says they have a had good response.

Share this:
Read More arrow_forward

aisha-pandorjpg

I've always been a hard worker, to my detriment. I must balance - Aisha Pandor

23 October 2020 3:49 PM

Sweepsouth cofounder Aisha Pandor shares her experience with failure and the lessons gained out of that.

Share this:
Read More arrow_forward

normagigaba_1405

Norma Mngoma warned against contacting witnesses in case against Malusi Gigaba

23 October 2020 2:39 PM

Case of Norma Mngoma, estranged wife of former Cabinet minister Malusi Gigaba, has been postponed till next year February.

Share this:
Read More arrow_forward

201021 Bushiri ECG6

ECG supporters chant songs in support outside court for Bushiri bail hearing

23 October 2020 12:56 PM

Eyewitness News reporter Edwin Ntshidi gives us an update on the church leader and his wife bail hearing case.

Share this:
Read More arrow_forward

Meat

Clement misses crucial cooking step but LesDaChef gives him a resounding nod

23 October 2020 12:54 PM

Celebrity chef Lesego Semenya is impressed with Clement's steak and his presentation in the kitchen despite a step being missed.

Share this:
Read More arrow_forward

Light bulb, electricity, load shedding.

Just another promise? Load shedding to ease from September next year says Eskom

22 October 2020 6:42 PM

Bruce Whitfield interviews Rhulani Mathebula (head of Generation) on Eskom's turnaround plan and the future of Koeberg.

Share this:
Read More arrow_forward

200406handcuffsgif

Husband among five suspects in murder of two businesswomen in Polokwane - Police

22 October 2020 4:51 PM

The women were killed in a hail of bullets outside a warehouse at Magnavia, Polokwane on 10 October 2020.

Share this:
Read More arrow_forward

wedding-couple-marriage-bride-groom-ceremony-nuptials-reception-123rf

Ripped-off customers: Good Samaritans offer 50% discount on wedding dresses

22 October 2020 4:37 PM

Naturally, Diamonds and Bride & Co give brides-to-be who were ripped off by Eurobride 50% off for their wedding dresses and rings.

Share this:
Read More arrow_forward

eskomdiepsloot_1554

Residents of Pimville Zone 7 overcome electricity challenges

22 October 2020 2:25 PM

Resident Nomonde Kwesa and Eskom Gauteng spokesperson Reneiloe Semenya tell us more on this.

Share this:
Read More arrow_forward

Proverb

'I did not have the knack for learning, my grandma inspired me,' says Proverb

22 October 2020 12:04 PM

Musician, Idols SA host and author bares all about his upbringing, career as well as 'The book of Proverb' on #Hangingout with Clement.

Share this:
Read More arrow_forward