THE POOR PAY MORE: Are Cellphone Rental Companies Charging Financially Excluded South Africans a Poverty Premium?
A document-based investigation raises serious questions about the cost of cellphone access, consumer rights and whether poor South Africans are paying substantially more because they cannot qualify for traditional credit. By Noko Maleka | InsightJoziNews.org In South Africa, being poor can be expensive. For millions of South Africans who do not qualify for traditional credit, have limited credit histories or have poor credit records, accessing basic goods and services can come at a much higher cost. This raises a serious question: Are financially vulnerable South Africans being charged a poverty premium simply because they have fewer financial choices? InsightJoziNews.org is examining the growing cellphone rental and rent-to-own market, including companies such as FoneYam and PayJoy, which provide consumers with access to mobile phones through rental or rent-to-own arrangements. These products are marketed as alternatives for people who may not qualify for traditional cellphone...