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Problematic creditors need to fix it quickly

FSCL expects to increase the number of mortgage claims.

Tuesday, May 17th 2022, 10:00 AM

and Eric Frykberg

Lenders are required to act quickly if they find it difficult to keep up with the loan, according to Financial Services Complaints Limited (FSCL).

The news comes as the credit watchdog service Centrix reports a 5% increase in debt last year.

“We’ve seen a 70% increase in credit complaints last year and a 120% increase in non -credit complaints at the same time,” the official said. major of FSCL Susan Taylor.

He said all lenders are required to have a strict policy under the Credit Contracts and Consumer Finance Act (CCCFA) and the Responsible Lending Code.

The code requires lenders to explain their process in relation to the risk of repaying creditors.

“For example, a lender can call their lender to tell them they’ve lost their job and they’re struggling to meet their payments,” Taylor said.

“The lender should remind them that they can apply for changes in the amount of the fee or the loan agreement, tell them what information the lender needs to evaluate the application and applicable time limits. “

She told of a case in which a man fell into personal debt after his partner became ill and could not work again.

He was able to maintain his regular salaries but didn’t know a backlog. So his lender combined it into a single fund, and extended the term of the loan, which proved to be feasible.

Taylor added that if a lender tries to contact a creditor on a loan, then it is better to talk first, not later, even if it is difficult to do.

With inflation rising, Taylor said he expects to see an increase in complaints in the coming months.

This was done during the Global Financial Crisis and may happen again.

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Problematic creditors need to fix it quickly

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