The Non-bank Credit Department has continued to see a rise in cases and had a 60% increase in disputes opened in 2012 as compared to 2011. This has necessitated having to employ more staff in order to deal with the increased volumes.
We have been successful in resolving numerous disputes about garnishee orders. In many instances amounts were written off consumer’s accounts or even refunded to them. In 2012, a total of R1,9 million was recovered for consumers.
There has been an increase in the number of complaints relating to reckless lending and in most instances affordability assessments were not done correctly. This office has successfully assisted consumers with disputes relating to reckless credit agreements. We are currently waiting for the National Credit Regulator to publish guidelines for affordability calculation, as the guidance will be welcomed.
Another area which still accounts for a large number of disputes in this department, includes problems with statements of account. Consumers mostly complain about not receiving accounts at all and accounts reflecting incorrect information, such as incorrect interest levied and non-allocation of payments made.