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Loadshedding News

With loadshedding on the rise and the stages being higher, people are starting to think about cutting reliance on Eskom and the national grid.

There is even talk of a risk of total system failure which has many people concerned.

With that in mind and the recent announcement that there are tax benefits for those who install solar systems, consumers are thinking of taking loans to cover solar installations.

These systems can be pricey but you have no doubt begun to see more and more advertising about them.

If you take a loan for a solar installation is it special some how? How do they work?

The NCR Says: No

The National Credit Regulator (NCR) has been approached for clarity on such loans.

Many people want to know if these are some sort of emergency loan and what the law would be about such lending.

The NCR have said: No. They say that the normal provisions of the National Credit Act (NCA) apply to such loans. They are just regular loans for all intents and purposes.

‘They say that the normal provisions of the National Credit Act (NCA) apply to such loans’

This means that all the usual rules about lending and borrowing would apply.

Credit providers (Like Massmart or FNB, and others) are required to conduct the usual affordability assessments. Consumers are required to provide needed information so that the credit provider can ensure that they can realistically repay the loans.

What If You Cant Pay?

What happens if you can’t pay? Will guys come and remove the system from your property?

Since the normal provisions of the NCA apply this means that, at present, these are regular loans and credit providers have the “usual” remedies open to them if consumers default.

‘credit providers have the “usual” remedies open to them if consumers default’

If your situation changes and you can’t make payments then the credit provider can start their collections process. This means they will pester you with sms, letters and phone calls. If that doesn’t work they will begin to look at legal action.

In such a case they will send you a scary Section 129 letter and then see if you enter debt review. If you do not then they will probably proceed to court to get a judgment. If you do not fight or catch up the missing payments they can then get a judgment and try to collect on that.

Even if at some point assets are attached there would be a chance to catch up missed payments or make a plan with the credit provider.

For those who do apply for debt review the credit would fall under the debt rearrangement and they can stress less about losing their assets.