NCR: Struggling consumers must check credit life insurance
The National Credit Regulator (NCR) has advised consumers to use their credit life insurance if they are facing financial difficulties.
Millions of South Africans are facing loss of income as a result of the 21-day national lockdown.
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When consumers sign up for credit life insurance it covers their outstanding debt in the event of unforeseen circumstances.
The NCR’s Nomsa Motshegare says some credit providers have also introduced interim relief measures to assist struggling consumers.
“Many consumers may not be aware that they have credit life insurance in place and that the premium for this insurance is already included in the cost of credit.
“To check if this insurance is in place, consumers must contact their credit providers and where applicable consider use of this benefit to provide relief.”
Credit life insurance will cover debt for a period of 12 months.
“The credit life insurance cover provides that credit providers must settle or pay the consumer’s debt for a period of 12 months or for the remaining repayment period or until the consumer finds employment or is able to earn an income,” Motshegare says.