Finished paying loan, consumer should get money back
This petition had 65 supporters
Every year, millions of people apply for loans and they are forced to take on a Protection Plan on their loan. This amount is then added to the loan amount increasing monthly payments. This amount is meant to cover the lender and borrower in case the borrower cannot pay for his/her loan. This plan covers in the case of untimely death,retrenchment, dread disease or permanent disability.
The trick is, when the consumer has completed paying off the loan on their own and non of the misfortune listed above has happened, the money payed on the Protection plan is then swallowed by the protection plan provider. Making more money on top of the interest that the loan has incurred.
This is unfair and pure exploitation of the citizen by financial institutions. It is only fair that the protection plan money that the consumer has paid over the years should be given back to her/him. The consumer can then use this amount of money to solve other financial problems or help herself/himself by getting an extra cash boost.
Why is it that financial institutions are allowed to further exploit consumers? This does not have to be, if the National Credit Regulator and the Government protected the consumer.
We therefore ask the regulator to force financial institutions to add a term and condition on Protection Plan T and C. The condition should be: When the consumer has finished paying of their loan, they can claim back the amount they have been contributing towards the protection Plan without prejudice. Furthermore, financial institutionts should add no clause that will counter the condition mentioned above.
I believe a lot of South Africans could use a fair financial system that does not further exploit them.
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Nosipho Singiswa needs your help with “National Credit Regulator: Finished paying loan, I want my money back”. Join Nosipho and 64 supporters today.