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Illegal lenders and credit scams

A lender who wants your card PIN, an upfront fee, or your SASSA card is not offering ordinary credit. Stop.

Reviewed 29 October 2026 by the WiT Money editorial team. This is general information, not a recommendation from a named adviser.

Key points

  • Consumer credit providers must be registered with the National Credit Regulator.
  • Never share a PIN, a one-time password or a banking app approval with a lender.
  • An upfront 'release fee' is a classic stop sign.

The National Credit Act requires registration before a person offers the credit the Act covers. Registration is not a guarantee of a fair price, but the absence of registration is a reason not to sign. Check the regulator's own channels. A logo on a WhatsApp profile is not a registration.

Scams ask you to pay a fee before the loan is paid out, to install remote-access software, or to hand over the card that receives a social grant. Legitimate credit is repaid after you receive the money. It is not purchased with a fee to a stranger.

Signs to walk away from

Pressure to decide today. A refusal to send a written quotation. A request for your internet-banking login. A contract that does not name the credit provider. A promise that blacklisting will be removed if you take the loan. None of those are part of an ordinary agreement.

If you have already paid

Contact your bank about the card or the transfer. Report the matter to the police if money has been taken, and tell the National Credit Regulator if someone is offering unregistered credit. WiT Money cannot reverse a payment.

Questions readers ask

Are all small loans illegal?

No. Small registered lenders exist. The test is registration, a written quote, and whether you keep control of your account.

Related

Sources

Page updated 29 October 2026. A source date is the day WiT Money checked that page, not a promise the institution has not changed it since.