'Help, don't blame, consumers'
22 June 2009
South Africa's embattled consumers cannot be blamed for the current financial situation, the said on Friday.
"Consumers face the paradox of being blamed for the present crisis due to insufficient prudence, while hampering the recovery because of an excess of prudence," the forum said in a statement issued at its 2009 conference in Midrand.
Consumers had incurred high levels of indebtedness despite the National Credit Act, which outlawed reckless lending.
"After years of promoting and profiting from excessive consumer borrowing and buying on credit, all players in the financial services sector ... must ensure that those now trapped in a debt cycle are not simply abandoned."
The NCF called on all parties concerned, including the government, to channel more resources into educating consumers on financial matters.
It also urged consumers to learn more about the National Credit Act, and how it affected them, "so they can be vigilant where companies are not complying".
The NCF said government should take the lead in protecting consumers from electricity producer Eskom's "excessive reliance on consumer tariffs to fund its operating and expansion costs".
On price-fixing, it said government had to think of ways to direct the money collected in fines levied by the Competition Tribunal back to the country's consumers.
This revenue had to be put at the disposal of consumer groups to enable them to take further legal action against offenders.
The money should also be used to assist businesses that might have paid a financial price for exposing anti-competitive behaviour, the NCF said.
Sapa
