WATCH | Ways to protect yourself from debt review scams

Consumers are urged to verify the credentials of anyone offering debt review services due to the rise in cases of people placed under review without their knowledge or consent. According to debt counsellors, scammers often target financially vulnerable consumers with promises of lower interest rates, reduced monthly repayments or debt write-offs. Sometimes they may claim to be acting on behalf of the National Credit Regulator (NCR) or suggest that consumers have been selected for special debt-relief programmes.

Benay Sager, executive head of DebtBusters, said consumers should always conduct basic checks before sharing personal information or agreeing to any debt review process. “Consumers should ask for the debt counsellor’s full name, company name and physical office address. A legitimate debt counsellor should be registered with the National Credit Regulator and be able to provide proof of registration,” he said.

Sager said consumers can search for a debt counsellor’s details on the NCR’s register of registrants and verify whether the individual and company are legally registered. “Before agreeing to any service, consumers should search the company’s name online. Check whether the company has a website, a physical address, customer reviews and a visible online presence,” Sager said.

[paywall]

He said one of the biggest red flags is an unexpected phone call from an “agent”. “Some falsely claim that the NCR has shared consumer information with them.” Sager warned that the NCR would never provide consumers’ personal information to third parties for marketing purposes. “If a caller claims you are being overcharged or have been selected for a special debt-relief programme, ask for the company details and end the call.

[/paywall]