HOW South African mortgage sharks are preying on SASSA beneficiaries

HOW South African mortgage sharks are preying on SASSA beneficiaries

Beneficiaries of Social Security Agency grants are being focused by South African mortgage sharks. From Older Persons to Child Support and Disabled grant recipients, all are weak to nefarious South African mortgage sharks who’re taken SASSA grants hostage, stories IOL.

As The South African reported lately, government has warned residents against payday loan scams forward of Black Friday 2024 later this month. Now, a brand new examine reveals that South African mortgage sharks are holding SASSA grant recipients’ cards hostage. Here’s how the rip-off works and how one can shield your self …

SOUTH AFRICAN LOAN SHARKS TARGET SASSA GRANTS

When individuals are struggling financially they’ll typically make poor selections. Image: File

According to the IOL story, SASSA grant recipients, whether or not the aged or single moms with newborns, are the goal for South African mortgage sharks, ‘mashonisas’ or ‘skoppers’. Quoting ‘Collaborations to Curb Indebtedness’ by Deborah James of the London School of Economics and Political Science, South African mortgage sharks are lending cash at unlawful charges of between 30% to 100% curiosity per 30 days. They then hold the SASSA cards and ID documents of lenders as collateral.

Moreover, SASSA grant beneficiaries are sometimes very poor, haven’t any entry to credit score and subsequently have to borrow cash on this un-fair foundation. Once South African mortgage sharks sink their enamel in and victims can not repay the debt, they successfully take over their lives, alleges the report. With no entry to cash, they’re fully depending on the sharks. Their captors solely present minimal foodstuffs to maintain them alive. Meanwhile the criminals clear out their financial institution accounts, start claiming SASSA grants and even take life insurance coverage insurance policies out below the debtor’s title.

RURAL AND INFORMAL AREAS

South African loan sharks
According to the NCA and CPA, unsecure lenders aren’t allowed to maintain SASSA playing cards as safety. Image: File

South African mortgage sharks function like this principally in rural or casual areas, just like the Eastern Cape. Moreover, the report says no laws supplies recourse for when SASSA grants are getting used as collateral. However, specialists say the National Credit Act (NCA) and Consumer Protection Act (CPA) ought to shield towards South African mortgage sharks.

Every resident has rights and credit score suppliers have a sure set of obligations to uphold. Therefore, charging extreme curiosity, preying on a buyer who can not afford credit score and taking somebody’s SASSA, banking or ID doc is prohibited. Suffice to say, you shouldn’t have interaction with any lender you don’t belief. And by no means hand over your financial institution/SASSA/ID doc to anybody. If this has occurred to you, contact SASSA to report the perpetrator:

  • SASSA Head Office and toll-free line: 012 400 2322 / 0800 601 011
  • Email SASSA: grantsenquiries@sassa.gov.za
  • Or e-mail the Office of Presidency to complain: president@presidency.gov.za
  • Alternatively, name the Black Sash National Helpline: 072 663 3739
  • Or e-mail: assist@blacksash.org.za

HAVE YOU BEEN THE TARGET OF SUCH SHARKS?

We need to hear from you when you’ve had any experiences like this … Image: File

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