The number of lenders utilizing SASSA (South African Social Security Administration) cards as security for lending has increased during 2017.Following a recent SASSA investigation into these lenders, the National Credit Union (NCR) received several calls from beneficiaries seeking for confirmation of payment.
The SASSA claims that by selling loans with exorbitant interest rates, moneylenders that prey on South African customers often target retirees and welfare beneficiaries.In recent circumstances, an SASSA recipient sought for a loan and the lender urged her to apply for a supplementary card and a burial insurance policy, both of which she did not want.
However, these are the requirements to acquire the money, so she must meet them in order to get the loan.In another instance, the recipient's account was debited twice to "confirm" the transaction, while in other tales, the borrower receives the recipient's SASSA card as security or continues taking payments long after the loan has been repaid.
Here are some details on SASSA loans:
Your social benefits may not be assigned, pledged, or transferred in accordance with Section 20(0) of the Social Assistance Act, 2004 (Act 13 of 2004), therefore using your SASSA as collateral for a loan is prohibited.If lenders are discovered to be in possession of payment cards used to guarantee loans, they may be arrested.
The pensioner's documentation may not in any way be in the possession of money lenders.If a beneficiary tries to transfer, assign, or pledge their benefit, it may be withheld, stopped, or canceled.For new applicants, a declaration of purpose is being created for them to sign.
This is to request that their AllPay cards, which are used to transmit SASSA benefits, be kept secure and prevent them from being handed to money lenders.When requesting a loan, keep in mind:
All moneylenders are obliged by law to show their NCR certificate.It will raise a red alert if you don't see it or if you request to view it but aren't given access to it.Additionally, lenders should place the NCR label on their property.
Receivers are often asked to switch from their AllPay card to an EasyPay Everywhere card by money lenders. Receivers will be "unreliable to regulatory protections" by the state if they choose to do this, according to SASSA.
https://sassaloans.webflow.io/post/how-to-apply-for-sassa-loans-to-get-child-support
