Proudly South African

Living-Smarts.com

Making Life even Better!
  • RSS
  • Home
  • Insurance Companies
    • Insurance Companies in South Africa
    • Absa Life
    • Alexander Forbes Insurance
    • All Life
    • Auto and General
    • Avbob
    • Better Life Insurance
    • Brightrock Life Insurance
    • Clientele Life
    • Constantia Insurance
    • Budget Insurance
    • Dial Direct Insurance
    • DirectAxis
    • Discovery Insure
    • First for women
    • FNB Life Insurance
    • Frank.Net
    • Hippo Insurance Quotes
    • Hollard Life Insurance
    • Iemas Insurance
    • Integrisure
    • 1LifeDirect Life Cover
    • Miway Life Insurance
    • Metropolitan Life Insurance
    • Momentum Life Insurance
    • Nedbank Life Insurance
    • Old Mutual Life Cover
    • Outsurance Life Cover
    • PPS Insurance
    • Prime Meridian Insurance
    • PSG Online
    • Regent Insurance
    • Sanlam Life Insurance
    • Stand Bank Life Insurance
    • Triarc Life Insurance
    • Unity Insurance
    • Virgin Money Insurance
    • Vodacom Life Insurance
  • Life Insurance
    • Top Reasons why you Need Life Insurance
    • Life Insurance Quotes
    • How to File a Complaint with the Insurance Ombudsman
    • Life insurance for diabetes
    • Life Insurance Terms and Definitions
    • Life Insurance questions and answers
    • Things You Have to Know Before Getting Life Insurance
  • Funeral Insurance
    • Absa Funeral Cover
    • Assupol Funeral Cover
    • Hollard Funeral Cover
    • Metropolitan Funeral Cover
    • Momentum Funeral Cover
    • Nedbank Funeral Cover
    • Old Mutual Funeral Cover
  • Healthy Living
    • Diets
      • 12 most popular diets
      • The Atkins Diet
      • The Paleo Diet
      • The 13 Day Diet
      • How to Gain Weight
    • Crime & Safety
      • South Africa – 4th Most Dangerous
    • Illnesses
      • Top Causes of Death in South Africa
  • Insurance News
    • Vodacom Enters Life s Insurance Biz!
    • Bad News for Loan Seekers in NCA Changes
    • SA Customers Disappointed in Life Insurance Companies
    • A Life Insurance Revolution with Big Data?
Search the site...
  • Home/
  • Life Insurance/
  • Insurance News/
  • Bad News for Loan Seekers in NCA Changes

Bad News for Loan Seekers in NCA Changes

March 24, 2015 / Emma B / Insurance News
0
Bad News for Loan Seekers in NCA Changes

No change to credit life insurance cost

Despite new changes made to the National Credit Act, there is no change in the rules about credit life insurance. New changes became law in mid-March 2015, but there is still no limit to the amount that companies can charge for credit life insurance.

Credit life insurance is usually attached to a loan and many creditors require it. The insurance is then used to pay off the loan should anything happen to the person who borrowed the money. However, some less reputable creditors use this as a way to make more profit by charging as much as R56 per R1000 borrowed.

The proposed change to the National Credit Act would have limited the amount of credit life insurance to just R4 per R1000 borrowed.

Unfortunately, there's not much that consumers can do about these charges, other than being aware that they exist and carefully comparing loan offers to see how much credit life insurance is being charged. However, if you're under debt review (in the process of legally consolidating your debts with a recognised debt counselling service) you may cancel the credit life insurance provided by a bank and opt for a cheaper, private company instead.

A limit on the charges for credit life insurance would certainly have made life easier for those looking to get a loan. In the meantime though, shop carefully if you're planning to borrow money!

Another disappointing lack of change in the National Credit Act amendments was that smaller creditors are still not required to register with the regulator. Registration is only required when a creditor gives over 100 loans or lends over R500 000 per year. This, of course, leaves the door open for those more unscrupulous companies to do as they wish, including charging high credit life insurance…

* Disclaimer: We do not represent any of the companies, products and/or services reviewed, published or advertised on this website. Nor are we financial, health or insurance professionals or services provider. If you request a quote or purchase a product/service, it will not necessarily be given by the company reviewed on any specific page. Any decisions you make based on the information presented is at your own discretion and we advise that before doing so, you consult with the relevant professional.

Posts you might find interesting:

Telkom to Offer Funeral Insurance

Telkom to Offer Funeral Insurance

FSB Shakes Up Life Insurance Rules

FSB Shakes Up Life Insurance Rules

Vodacom Joins the Insurance Biz!

Vodacom Joins the Insurance Biz!

Leave a Reply Cancel reply

You must be logged in to post a comment.

Stuff you have to see!

60
The ultimate eating contest
Prison Video

<< >>

Popular Articles

  • Most Viewed

    Signup for our newsletter

    Which subject interests you the most?

    View Results

    Loading ... Loading ...

    Categories

    Like Us and Stay Updated!

    Recent Posts

    • Critical Illness Cover Cr: Navy Medicine http://tinyurl.com/p4devpc

      What is Critical Illness Cover?

      March 4, 2016
    • How to Quit Smoking Cr: R. Cruz http://tinyurl.com/p4devpc

      How to Quit Smoking

      February 26, 2016
    • Living with Diabetes Cr: Practical Cures http://tinyurl.com/p4devpc

      Living with Diabetes

      February 18, 2016
    • What is HIV and AIDS Cr: S. Hardy http://tinyurl.com/p4devpc

      What is HIV and AIDS?

      February 11, 2016

    Categories

    • Crime & Safety
    • Diets
    • Funeral Insurance
    • Healthy Living
    • Illnesses
    • Insurance News
    • Life Insurance
    • Life Insurance Companies

    Get In Touch

    Useful Links

    • Sitemap
    All rights reserved (c) 2015 Living-Smarts.com
    • Contact Us
    • About Us
    • Terms of Use
    • Sitemap
    • Login
    Living-Smarts.com ("LS" or "Site") is not a financial services provider, nor are we an insurance company. We do not provide insurance ourselves. All content on the Site is for informational purposes only and does in no way constitute legal, health or financial advice. We advise that before making any financial or medical decision you consult with the relevant professional. LS will not be held liable in any shape or form for damages, direct or indirect, resulting from any decision you make based on the information on the Site. The Site does not represent any companies reviewed, published or advertised on the website. Any decisions you make based on the above information is at your own discretion.