A large number of people think pawning their belongings is an easy solution to get some quick cash. However, many pawn brokers have their own terms and conditions that consumers only realise when it’s too late.

A pawn broker also regularly offers consumers loans if they (brokers) secure ownership of their (customers) private property as surety on the said loan. Yes, pawn brokers do give a ‘at own risk’ clause to consumers, but consumers are usually desperate at that particular moment that they do not think rationally about their decisions.

Many a times the items consumers pawn are still being paid off. Consumers also get so consumed into pawning ‘goods’ they purchase unnecessary items on their accounts to get some quick cash. Most times this kind of reckless spending or compulsive buying gets consumers into huge amounts of debt or being blacklisted because they cannot keep up with payments.

For advice on how to manage your accounts more effectively, give us a call at 0861 111 159 or mail us at info@debtcheck.co.za

In 2014 the second draft for the Financial Sector Regulation Bill was drafted.

The bill/document acknowledges that laws do not go the extra mile in protecting the consumer. The bill focuses on what the regulators should focus on as to what the financial sector delivers to you as a consumer, but also to make sure that you as a consumer are treated fairly in every aspect.

The document stated the regulation to be intensive, intrusive, pre-emptive and pro-active.

The Financial and Services Board (FSB) and the National Treasury have been working in the 2015/2016 year in laying down requirements for financial service providers to give standardised terminology documents (documents which are easy to understand and does not contain jargon which cannot be understood by the average person).

Many people do not know about the upsets they get themselves into nor are many educated in the rules and regulations of financial service providers (FSP).

The National Credit Regulator (NCR) still remains independent and a vice on its own. The document/bill clearly states very important issues consumers are affected by with the extension of credit by banks.

• Reckless lending practices that leads to over-indebtness.
• Incorrectly targeted credit providers.
• Poor sale incentives that lead to unfair lending practices.
• A huge number of multiplicity of fees and commissions are often high and opaque, compounded by inadequate or poor disclosure to consumers.
• Abusing payment systems to collect debt.
• Abusing surety-ships.