The National Credit Regulator has warned all consumers not to hand over their ID documents, Sassa cards or bank cards to any credit provider.

The practice of loan providers to take these documents as security is a criminal offence and should be reported to the regulator and the police, the NCR says.

The warning follows six raids which resulted in the confiscation of ID cards and documents, drivers' licenses, Sassa cards and passports. Five criminal cases were also lodged.

The NCR points out in a statement that everyone should have their identity documents for the upcoming elections and calls on credit providers to "desist from retaining" the documents.

The regulator also warns that lenders demanding IDs or cards as security for a loan are "usually" engaging in reckless lending and overcharging. It urges consumers to protect themselves by only handing money over or do business with registered financial services providers, whether for credit, loans or any kind of investment.

The NCR says it's alarming that consumers still react to SMSes that advertise loans without credit checks or salary slips. The National Credit Act prohibits statements or phrases such as "no credit checks required", "blacklisted consumers welcome", or "free credit".

The NCR says you should always only use providers who are registered with the regulator. A registered credit provider should have an NCRCP number, a registration certificate, a window decal (orange sticker) and it should also appear on the NCR website.