Real Estate Investor Magazine South Africa August 2015 | Page 38

FINANCE

Stay Away From

Loan Sharks

Beware of fake credit providers

BY GARY PALMER

B

orrowers must be wary of fraudulent scammers
and unscrupulous money lenders.
According to the National Credit Regulator
(NCR), “Fraudsters posing as licensed credit providers
are on the rise.”
These credit providers offer personal loans at lower
than the average interest rates. These fake credit
providers contact consumers through email or SMS.
Once consumers accept the offers, the fake credit
providers demand payment of advance fees.

“Lenders want your loan process
to be as seamless as possible,
however, unscrupulous lenders
want your loan to default.”
Often property investors in urgent need of capital to
secure business transactions are unable to obtain finance
from banks due to stringent lending regulations, and
therefore turn to private lenders as an alternative. Since
2009 there has been an increased number of non-bank
lenders enterin