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NCR Shutting Down Scammers

Scammers have been ripping off consumers with Get Out Of Debt Review scams.

Thousands of consumers have been scammed of hundreds of thousands, if not millions, of rand.

Now the National Credit Regulator is taking action to shut them down.

Scammers Everywhere These Days

You probably opened up your email today and were able to spot several scam messages.

We have all had to become better at identifying the difference between real emails from your bank and fake ones.  We have all just got used to scam offers from fake Princes and bogus attorneys wanting to pay you your share of a lost relatives fortune.

It is a sad reality of life and Ai is making things even more complicated than ever before.

It is always sad to hear about businesses or elderly pensioners getting scammed.

Please be vigilant everyone!

Scammers Must Go

Recently, the NCR struck a blow against some shoddy Debt Counsellors acting as fronts for scam mills who go after people with debt review statuses showing at the credit bureaus.

Such scammers advertise on social media or email, call or sms consumers with fake offers to help them get out of debt review. They take money up front and consumers end up lied to or outright lose their money.

The NCR uncovered massive fraud and illegal activity and took several phoney Debt Counsellors to the National Consumer Tribunal to have their registration removed.

While it is horrible to think that the debt review and debt counselling industry has a negative element, the reality is that scammers have moved into the space and are raking in millions from vulnerable and desperate consumers.

Kicking These Scammers Out The Industry

Debt review already has some reputational issues spurred on by negative comments from major credit providers.

There is no room for scammers who are actively trying to undermine the purpose of the Act and bring the industry into disrepute.

The NCR recently investigated some scammers and took action to shut them down. Here are some of the highlights from the NCT cases where the phoney Debt Counsellors were exposed and deregistered.

 

NCR vs Matea Gladness Maota

This Debt Counsellor was not using a PDA to receive funds from consumers.  She also got court orders saying that consumers had no more debts when they actually did still owe credit providers. She issued false clearance certificates.

Outcome: Deregistered! R100 000 fine

 

NCR vs Mandisa Perseverance Balungile Mthembu

This Debt Counsellor blamed her employer for telling her to just update the NCR’s database with incorrect information saying the consumers were no longer over indebted. She did so even though there were no documents or paid up letters from any credit providers. Sorry, even the Nazi’s couldn’t get away with saying the boss made them do it.

Outcome: Suspended for 2 years!

 

NCR vs Christopher Sethole

The NCR proved that Christopher Sithole was issuing clearance certificates for people who had not paid up their debt. The scam used a 3rd party to produce fake letters that looked like they were from various credit providers. These were sent to the NCR and Credit Bureaus.

Outcome: Deregistered! R25 000 fine

We’ve Only Just Begun

It must be acknowledged that there are many, many, many scammers out there and these recent rulings only scratch the surface.

Yes, there is more work to be done. But…you have to start somewhere, right?

Hopefully, the consumers involved bring civil litigation against these people. Hopefully SAPS or the Hawks press fraud charges. Hopefully, the credit providers take massive legal action against such scammers to make a point.

Let’s see if any of these scammers ends up in jail or loses their fancy cars and homes.

For now, all we can say is:

Well done to the NCR team and the NCT for taking steps to combat this scourge!