Guiding consumers since 2009

NCR clamps down on micro-lenders

By Staff Writer

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.

Recent Articles

Featured Everything you should know about tax auto assessment

In 2019, the South African Revenue Service (SARS) launched a system, which was dubbed an “auto assessment”, to assist taxpayers with their annual tax returns. But what does this system entail, and how will it impact you?

What does it mean to be a registered Financial Services Provider?

You may have noticed that financial institutions state that they’re registered Financial Services Providers (FSP). But what does this actually mean, and how does this benefit you as a consumer?

Should the retirement age change?

Across the world, people are retiring later than they used to. However, retirement products are centred around set retirement ages at which point you’d be able to access your retirement savings. But how applicable is the current retirement age in South Africa?

Everything you need to know about wills

Death can leave a lot of confusion and chaos. What happens to your possessions when you die can have a profound effect on those you leave behind. But you can soften the impact by drawing up a will.

Deals

Get 30% off your gym membership with Absa student account

Price: Available on request
When: Daily
Where: Nationwide

Get 10% discount on Rentalcars.com

Price: Available on request
When: Daily
Where: Worldwide

Get up to R5 back in rewards points when buying fuel

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions