Business & Economy

Thursday, 02 April 2009 17:03

Banks are expecting to repossess vehicles over Easter Holidays

{pp}Many banks across South Africa are experiencing an increase in approved loan applications; this is of concern to many debt counsellors country-wide. Are the banks doing thorough assessments before granting credit?

In December the overdue installments for vehicle finance exceeded the previous three years. Marcel De Klerk, managing executive of ABSA’s vehicle and asset finance, stated that it takes the banks at least three months to repossess a vehicle. Currently approximately 6000 vehicles are being repossessed per month by all the banks and this is expected to increase to 7000 over the Easter holidays, the reason for this according to De Klerk is that most consumers struggle over the Easter Holidays to effect payment on the vehicle finance.

According to Ronell Jacobs, Executive Member of DebtDocter, many consumers wait to long before applying for debt counselling. Jacobs confirms that consumers should apply for debt counselling immediately when they see that they are unable to meet their monthly obligations and not wait until they receive a letter of demand from the creditors. Jacobs also says that once enforcement procedures have been instituted against the consumer it is more difficult to assist them and for the consumer to retain the assets that are about to be repossessed. Debt counselling is a solution which was brought about by The National Credit Act 34 of 2005, in terms of which a debt counsellor may restructure a consumer’s debt obligations into an affordable installment. The consumer is also protected against repossession of assets and enforcement procedures. Jacobs says that should you be looking for a debt counsellor:

contact information:
tel: 0861 000 378
All DebtDocter’s debt counsellors are registered and accredited with The National Credit Regulator.

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