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Consumers are encouraged to manage their debt before asset seizure
The National Financial Ombud Scheme South Africa (NFOSA) has warned consumers not to wait until repossession or foreclosure before seeking help with debt.
The group say thousands of complaints linked to vehicle finance and home loans are already reaching its offices.
According to the NFO, many consumers are unaware that they have legal options under the National Credit Act to exit or manage credit agreements.
NFOSA Adjudication Manager, Kwanda Vabaza, says, “In a few of the complaints we’ve received, over 1,300 relating to secured lending, including vehicle finance and mortgages, many people have raised issues with financial services providers or credit providers taking legal action to repossess these assets. We understand that many individuals are struggling financially”.
“However, as the NFOSA, we emphasise that there are options available, such as voluntarily surrendering the vehicle under Section 127 of the NCA, pursuing a private sale, or using a help yourself sell program” he adds.
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The warning comes as South Africa marks World Consumer Rights Month.
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