Free money guidance for consumers

Gone are the days when consumers had nowhere to go to get free information and guidance on money matters.

Usually they got financial guidance from family members or within the service provider's premises.

But now the Department of Trade and Industry, the Credit Ombudsman, FinMark Trust and African Bank have come up with a plan.

These institutions will be running Imali Matters offices to help South Africans.

Credit Info Ombudsman Manie van Schalkwyk says the Money Advice Association, which trades as Imali Matters, has found that there is a great need to assist people in gaining knowledge to make correct choices about their money.

Van Schalkwyk says a recent study on the provision on money advise to low income people concluded that "individuals need practical guidance on how they can apply newly acquired knowledge to their own circumstances to achieve their financial goal".

He says money advice is one intervention in the provision of financial education that would increase consumer financial literacy and capability.

The project is funded by department for an internationally established financial education fund and will be rolled out nationally after a pilot plan has shown substantial impact.

Imali Matters will be launching three pilot branches this month, each with two highly qualified counsellors who will offer intensive assistance on a case basis, also workshops and lectures on topics consumers most need in their catchment areas. These services will be offered free of charge.

Shireen Miller, who runs the Imali Matters office in Germiston, says the project will test the effectiveness of free money advice and consumer recourse referral services.

Miller says the project is based on a partnership which includes NGOs, You and Your money, Provincial Consumer Affairs, Financial Ombudsman, the referral partner, which includes the Financial Services Board, the National Credit Regulator, debt counsellors, law clinics and other counselling and advisory services.

HOW THEY CAN HELP:

• Imali Matters offices will offer free financial guidance to low income consumers.
• They will provide informational guidance on specific needs like savings, signing of contracts, opening an insurance policy, wills, inheritance, budgeting, car purchase, opening a bank account, understanding credit, understanding account statements (including interest and charges), understanding credit bureaus and reports.
• They will give assistance with redress such as defaults, legal action, over-indebtedness, emolument attachment orders, overcharging, defective products and unlawful contracts.
• The first office will be launched on September 9 at the Non-Commissioned Officers Club, South African Police Services, Corner Splisbury and Long streets in Germiston.

Source: The Sowetan