The National Financial Ombud Scheme South Africa has warned consumers not to wait until their vehicles or homes face repossession before seeking assistance with debt.
The organisation says thousands of complaints related to vehicle finance and home loans are already being lodged with its offices.
According to NFOSA, many consumers remain unaware that the National Credit Act provides several legal options to help them manage or exit credit agreements.
NFOSA Adjudication Manager Kwanda Vabaza said the scheme has received more than 1,300 complaints linked to secured lending, including vehicle finance and mortgages.
“In many of the complaints we’ve received relating to secured lending, including vehicle finance and mortgages, consumers have raised concerns about financial services providers or credit providers taking legal action to repossess these assets,” Vabaza said.
He acknowledged that many individuals are facing financial difficulties but emphasised that consumers have several alternatives before matters reach the stage of repossession.
These include voluntarily surrendering a vehicle under Section 127 of the National Credit Act, pursuing a private sale of the asset, or using a “help-yourself-sell” programme.
NFOSA issued the warning as World Consumer Rights Month is being observed, encouraging consumers to better understand their financial rights and available protections.