How to protect your money, rights, and peace of mind
From dodgy loans and warranty tricks to Facebook scams and shady contracts, these consumer hacks help South Africans stay street-smart and keep their hard-earned money safe.
1. Need a loan? Remember, if they ask for an upfront fee, it’s a scam
The National Credit Act does not allow credit providers to request upfront payments for the release of a loan, so if a “credit provider” makes this request, disengage immediately.
Scammers prey on consumers who find themselves extremely financially stretched and unable to qualify for legitimate loans.
I used to say, if the grammar and tone of emails are a bit off, beware, but thanks to AI, that’s no longer relevant advice. ChatGPT is a gift to fraudsters.
Often, they clone the websites of legitimate credit providers and attempt to make people believe they are endorsed by government agencies such as the National Credit Regulator.
The request for an upfront fee, before they put that loan money in your account, remains a very valid red flag.
2. What not to do if your appliance is still under warranty…
When your washing machine leaks or breaks, don’t rush to call in the repairer you’ve saved in your contacts list.
The Consumer Goods and Services Ombud warned about this in its latest annual report.
When a woman’s leaking washing machine started causing outages, she asked the manufacturer for a refund or replacement machine as per the warranty, but this was denied. The manufacturer said her use of a technician not authorised by them had voided the warranty.
The Consumer Protection Act gives all products you buy an automatic six-month warranty, allowing you to choose between a repair, replacement or refund if it breaks in some way in that time, but only if you follow the rules.
When an appliance becomes faulty, and it’s under warranty, either the CPA 6-month one or the manufacturer’s warranty, first contact the retailer you bought it from for guidance.
3. Don’t do memory tests or any other Facebook quiz or survey
Ever been tempted to do one of those memory or intelligence tests that pop up on Facebook?
Margie did, and she deeply regrets it.
She completed a memory test and could only access the results after paying.
“I did because it was said to be only R35. But later came a further 'subscription' for R541.68 a week!"
She tried to cancel without any success, then did some internet research and discovered that she’s not alone.
She has since cancelled her card. Expensive lesson!
4. About paying deposits to contractors...
You’ll be asked to pay a deposit, 70 or even 80% has become the norm -which puts you, the customer at huge risk if the contractor doesn’t keep to their side of the deal.
They will justify their large deposit policy by saying they need to buy the materials needed for your job upfront.
One way to mitigate your risk is to insist on paying the contractor’s supplier for materials directly - once you’re verified that they are legit, of course.
If the contractor refuses, consider that your lucky escape.
5. Business printer contracts - best you read every word of that small print
If you’re running a smallish business and contemplating signing a printer contract, know that Consumer Protection Act doesn’t apply, which is why those contracts are extremely one-sided in favour of the printer company.
Santosh took out a 24-month printer contract in February 2023. In April this year, two months after that two-year period ended, he wanted to cancel the contract, but he was swiftly pointed to the contract Ts and Cs, which state that if he failed to give notice of cancellation a whole three months before the contract ended, he’d be locked in for another year.
They could never impose such unjust terms in a consumer contract, but sadly there’s nothing to prohibit such unfairness in a business contract.
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