Thirteen individuals have been arrested after the National Credit Regulator (NCR) and the South African Police Service (SAPS) joined forces to stop abusive micro-lenders and ensure compliance with the National Credit Act (NCA).
“The focus of this kind of operation is primarily on credit providers who are unlawfully garnishing, retaining pension cards, bank cards, identity documents and personal identity numbers (PIN) of their clients as surety,” said Nomsa Motshegare, CEO of the NCR. “This is a contravention of the National Credit Act and it is a criminal offence,” she added.
Eleven criminal cases were opened after the suspects were found to be in possession of 5 453 pension cards, 130 ID books and 1 720 bankcards. The effort also involved the Directorate of Priority Crimes and Investigation in Upington, Keimos, Kakamas and Groblershoop and 32 lenders were investigated.
The clampdown is part of the NCR’s ongoing strategy to ensure that all credit providers comply with the provisions of the NCA. “The exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated,” added Motshegare.
Motshegare complimented the SAPS and the Directorate of Priority Crimes and Investigation from Upington, Keimos, Kakamas and Groblershoop for their excellent assistance to the NCR during this operation, and for their willingness to assist consumers.
“This operation was definitely not the last of its kind. Such operations are conducted nationally in different parts of the country. Credit providers should be warned that the NCR will not condone any contraventions by credit providers,” concluded Motshegare.