Loan Scams in South Africa

South Africans lose millions each year to fraudulent credit providers. Here are the five most common warning signs.

1. Upfront Fees

This is the #1 red flag. Under the NCA, it is illegal for a credit provider to charge upfront fees before granting a loan.

2. No NCR Registration

Every legitimate credit provider must be registered with the NCR. If they cannot provide a valid NCR number, walk away.

3. Guaranteed Approval

No legitimate lender can guarantee loan approval without conducting an affordability assessment.

4. Pressure Tactics

Scammers create false urgency: "This offer expires today!" is a tactic to prevent due diligence.

5. Unprofessional Communication

Be wary of lenders who only communicate via WhatsApp, use free email addresses, or have poorly designed websites.

What to Do If You've Been Scammed

Report to the NCR at 0860 627 627, SAPS, and your bank immediately.

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