JOHANNESBURG - The rising cost of living is forcing many South Africans to look to unscrupulous lenders for loans.
Some are being fleeced of almost their entire paychecks.
Researcher Stephan Van der Merwe says people must do a thorough research before getting a loan from lenders.
"The first thing you need to make, if you’re going to be in a position where you have to incur a loan… you have to do your research and make sure that these are creditors that are above the board."
"I would encourage someone to do proper research. Contact the National Credit Regulator…go and look at websites, do research about this.
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"Then you need to make sure that at the time the loan is extended, the loan agreement is explained in complete clarity and that an affordability assessment is done on a proper basis so that the loan that is extended to you is affordable," he said.
"If you’re in a position where you find that you’re exploited through the system, is that my advice would be, you have to seek legal assistance. Go to your nearest university legal aid institution, Legal Aid South Africa: approach someone who can assist you.
"Because we found in the research, often the employer would simply say we’re not able to assist you because we have an agreement with the creditors that we must make these deductions.”