Unregistered lenders and loan sharks
An unregistered lender operates outside the National Credit Act, which means outside the interest caps, outside the affordability requirement, and outside the complaints process. Borrowing from one is not simply more expensive — it removes almost every protection the law gives you.
What you need to know
Retaining your bank card, SASSA card, ID or PIN as security is unlawful. It is also the practice that traps people most completely, because the operator can take whatever it wants when your money lands. If this has happened, report it — to the National Credit Regulator, and to the police if there has been intimidation.
Threats, intimidation and taking possessions without a court order are all unlawful, whatever an agreement says. Nobody may seize your property to satisfy a debt without a court order.
Because the agreement falls outside the Act, the interest is not capped and no affordability assessment was required. Debts of this kind grow without limit, which is exactly how they become impossible to exit.
If you are already in this position, a registered debt counsellor and the National Credit Regulator are the right contacts. It feels like an inescapable situation and it is not — but the way out runs through the formal system, not another informal loan.
If something goes wrong
- Complain to the lender firstPut it in writing and keep the reference number. Most credit providers must give you a decision within a set number of business days under their own complaints policy.
- Escalate to the Credit OmbudIf the lender does not resolve it, the Credit Ombud handles disputes with non-bank credit providers at no cost to you.
- Report it to the National Credit RegulatorThe NCR is the regulator. Report reckless lending, an unregistered provider, or a lender that will not give you a pre-agreement quote.
Related
Sources and last checked
- National Credit Regulator — register of credit providers — Regulator, as at 10 August 2026.
- National Credit Act 34 of 2005 and its regulations — Government, as at 10 August 2026.
Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.