Beneficiaries of Social Security Agency grants are being targeted by South African loan sharks. From Older Persons to Child Support and Disabled grant recipients, all are vulnerable to nefarious South African loan sharks who are taken SASSA grants hostage, reports IOL.
As The South Africanreported recently, government has warned residents against payday loan scams ahead of Black Friday 2024later this month. Now, a new study reveals that South African loan sharks are holding SASSA grant recipients’ cards hostage. Here’s how the scam works and how you can protect yourself …
SOUTH AFRICAN LOAN SHARKS TARGET SASSA GRANTS
According to the IOL story, SASSA grant recipients, whether the elderly or single mothers with newborns, are the target for South African loan sharks, ‘mashonisas’ or ‘skoppers’. Quoting ‘Collaborations to Curb Indebtedness’ by Deborah James of the London School of Economics and Political Science, South African loan sharks are lending money at illegal rates of between 30% to 100% interest per month. They then keep the SASSA cards and ID documents of lenders as collateral.
Moreover, SASSA grant beneficiaries are often very poor, have no access to credit and therefore need to borrow money on this un-fair basis. Once South African loan sharks sink their teeth in and victims cannot repay the debt, they effectively take over their lives, alleges the report. With no access to money, they are entirely dependent on the sharks. Their captors only provide minimal foodstuffs to keep them alive. Meanwhile the criminals clean out their bank accounts, begin claiming SASSA grants and even take life insurance policies out under the debtor’s name.
RURAL AND INFORMAL AREAS
South African loan sharks operate like this mostly in rural or informal areas, like the Eastern Cape. Moreover, the report says no legislation provides recourse for when SASSA grants are being used as collateral. However, experts say the National Credit Act (NCA) and Consumer Protection Act (CPA) should protect against South African loan sharks.
Every resident has rights and credit providers have a certain set of responsibilities to uphold. Therefore, charging excessive interest, preying on a customer who cannot afford credit and taking someone’s SASSA, banking or ID document is illegal. Suffice to say, you should not engage with any lender you don’t trust. And never hand over your bank/SASSA/ID document to anyone. If this has happened to you, contact SASSA to report the perpetrator:
- SASSA Head Office and toll-free line: 012 400 2322 / 0800 601 011
- Email SASSA: grantsenquiries@sassa.gov.za
- Or email the Office of Presidency to complain: president@presidency.gov.za
- Alternatively, call the Black Sash National Helpline: 072 663 3739
- Or email: help@blacksash.org.za
HAVE YOU BEEN THE TARGET OF SUCH SHARKS?
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