The National Credit Act was introduced to regulate the provider of credit and credit agreements.
Each consumer needs credit facilities and financing from time to time, but if credit facilities are not judiciously managed and regulated, they can plunge the consumer into debt with serious consequences. If the consumer can’t comply to his/her obligations, it can lead to him/her being reported to the Credit Bureau as a poor payer or to a sentence being imposed against the consumer.
Samba Co-operative Limited is a registered Credit Provider (NCRCP 1270 ) in terms of the National Credit Act and is committed to comply with the requirements and codes of the law.
A few tips for the consumer in order to manage credit:
1. Ensure that you understand the terms and conditions of the credit agreement you want to enter into and that you are familiar with the consequences thereof.
2. Check that you understand the full extent of the costs, fees and interest rate of the credit agreement and whether these costs will be levied monthly or annually so that you can budget for it. Interest rates can be either a fixed interest rate or a linked rate. Be on guard that the installment of your credit agreement with a linked interest rate will increase when there is an increase in the prime rate and that you budget for these unforeseen increases.
3. Check whether the credit agreement can be paid in installments or whether it is a once off payment so that you budget properly.
4. Draw up a proper monthly budget by setting off your expenses against your income to ensure that the installment or repayment of the credit agreement can be afforded. Be cautious to calculate income that is not a fixed monthly amount.
5. New credit agreements in order to consolidate debts are not an answer as they are very expensive. Rather attempt to lower your standard of living, to limit your purchases – especially of luxury items and to pay off your debt as fast as possible.
Samba has adopted a conflict of interest management policy as contemplated in section 3A (2)(a) of the general code of conduct of the FAIS Act. For any inquiries regarding this policy contact Louis Nel at 0514480111.
What is Samba’s Language Statement of Intent?
The National Credit Act provides that a customer has the right to receive documents in plain and understandable language. The National Credit Regulator has approved for Samba to make these documents available in Afrikaans and English, but should a customer require assistance in another official language, this can be reviewed.