Using your Sassa payments as security for a loan
Using your Sassa payments as security for a loan? Is this allowed and legal to use your card as collateral for getting a loan?
There is no way that you are allowed to use your Sassa as any form of collateral or security to get a loan. Not even from a loan shark or from legal lenders. You will get into serious trouble when you are doing this. If your lender is making this suggestion, you are supposed to report him for fraud.
Can you use your Sassa payments card as security for getting an approved loan?
When you need to get urgent cash, you might be tempted to use your Sassa payments card for getting your loan approved. People consider using their cards as security or as collateral. Here are the facts about using your card for loan approvals.
- You aren’t allowed to use your Sassa card for anything besides paying in stores and withdrawing funds.
- You should not give your Sassa payment number to anyone else. This is your private property and is confidential.
- No lender is allowed to ask for your card as collateral or for security. You are supposed to report them to Sassa and the police for fraud.
- When you are getting any Sassa grant, you will not be able to apply for a legal loan.
It’s illegal to make use of a loan shark by using your Sassa payments card as collateral
There is nothing more to say about using your Sassa payment card as collateral to get a loan from a loan shark. It did happen before that the loan shark takes the Sassa card for their payments on the loan until you repaid it in full. However, there is one important thing to remember.
- The Sassa card isn’t your property. This is the property of the Sassa offices or the property of the state. And, no one should have another person’s card in their possession. You can be arrested and go to jail for this.
- It doesn’t matter if you are the owner of the card, or if you are the loan shark lending the money to the Sassa card holder. You will be arrested for fraud and will go to jail or pay a huge fine.
No one is allowed to make use of their payment cards to get any form of a loan. It doesn’t matter if the loan is private or not.
You are the only one that should have access to your card
Did you know that you are the only one that should have access to your Sassa payments card? That you should not give your card to anyone else? And, you aren’t allowed to have anyone else’s card in your possession. These are the reasons why.
- There isn’t any reason why your card should not be in your possession.
- This is your grant payment, and only you should be able to access it.
- The card is the property of the state. If it lands in the wrong hands, without you reporting it to the Sassa offices, you are going to be the one in trouble.
- Not your spouse, parents, or children are allowed to have your card without written permission. The permission will only be valid if they have your card because they are the person collecting your grant payments on your behalf.
Different payment methods of your Sassa grant should stay your choice
It does happen that people are trying to make use of their Sassa payments to get a loan. And, that the lender is requesting that your payment be done via bank deposit.
So, going to the Sassa offices and changing your payment method from direct collection to bank deposit for a lender, is illegal. You will need to put in a reason for the change in the payment method.
There are three different ways how you can get your grant payments. And, you aren’t allowed to use it in any way for getting a loan. You can get your payments through:
- A bank deposit. Banking fees will apply for this method. And you need to have your card at hand to withdraw the money.
- From a Post Office or any other Sassa pay point. You will need to show your Sassa card and your ID before you will get your funds. Giving your card to a loanshark will not give them access to your cash.
- At any stores like Pick n Pay and Boxer where you can get your money through the pay points.
What you do with the money after you withdraw it is your choice. But, you can’t use the Sassa payment as security or collateral for getting a loan.
Rules and regulations about the different payment methods for your Sassa Payments
With the different payment methods for your Sassa payments, there are some rules and regulations that you need to follow and remember.
- With the payments, there are different methods to consider. You will need to withdraw it from Sassa pay points or the bank. Some of these methods are requiring you to pay fees. So make sure which payment option is going to be best for you.
- With a bank deposit, you are going to pay normal banking fees. You can withdraw the money from an ATM, from Sassa pay points, or at selected stores.
- You can’t let someone else collect your payments at the pay point. Except if you are making use of a beneficiary that has the right paperwork and permission from the Sassa offices.
No. There is no way that you can make use of your Sassa payments card as security or collateral for a loan. It doesn’t matter if the lender is legal or not. You should only use the card to get your payments, and not to use it as proof of income. If you are getting caught, you will be arrested and go to jail for fraud.
Magda Dupont is an experienced writer at kredilife.com, where she’s credited with more than 100 articles covering everything from entrepreneurial stories to how to apply for government grants.
She also oversees the Comment&Questions, which poses important admission questions to experts in the field, and regularly hosts webinars on various aspects of the technical school experience.
Prior to joining kredilife.com, Magda honed her skills as a freelance writer, tackling a wide array of topics from camping to personal loans.
Haley holds a Master’s degree in English Literature from the University of Edinburgh, Scotland.