Guiding consumers since 2009

13 Credit providers in trouble with tribunal

By Staff Writer

Thirteen credit providers have landed in hot water with the National Credit Regulator (NCR), which has referred them to the National Consumer Tribunal (Tribunal) this month.
 
The NCR has not named the companies referred to the Tribunal but they did release the geographical areas in which these providers operated, which included: five from the Eastern Cape area such as King Williams Town and Stutterheim, two from Bloemfontein, one from Rustenberg in the North West, one from Nelspruit, one from Dundee in KZN, one from Gauteng and two from Stellenbosch and Roberston in the Western Cape.
 
“We will not be releasing the names as each of the entities are not guilty of the same contraventions. We have highlighted the general contraventions in the referrals as to show that we are not increasing our efforts in dealing with these contraventions,” said a spokesperson from the NCR.
 
 
The referrals follow investigations conducted by the NCR across the country into micro-lenders. These investigations revealed that these entities were:
1.    Giving credit recklessly to consumers;
2.    Failing to provide pre-agreement quotations to consumers;
3.    Charging interest in excess of the prescribed maximum rates;
4.    Overcharging of service fees;
5.    Unlawfully retaining pension cards, bankcards, identity documents and personal identity numbers (PIN) of their clients as surety.
 
 
“The NCR is intensifying its effort to detect reckless lending and the retention of consumer bank cards and identity documents,” says Jacqueline Boucher, manager investigations and enforcement at the NCR.
 
The NCR will continue to take enforcement action against entities who extend credit recklessly to consumers and reminds credit providers that keeping pension cards, bank cards and identity documents is a criminal offence”, she adds.
 
The NCR is asking the Tribunal to order the entities to:
 
·         Refund the affected consumers
·         Interdict them from continuing with their unlawful conduct
·         Impose an appropriate administrative fine.
 
The NCR will continue to conduct industry-wide investigations to root out breaches of the National Credit Act and abuse of vulnerable consumers.
 
Last year Capfin, Cash Converters and furniture retailer Lewis landed in hot water with the regulator too:  When asked for an update, the spokesperson said that the Lewis case remains before the Tribunal. “…We await a hearing date [for Lewis]. In the Capfin case it is before the Tribunal and we await judgement.”

Recent Articles

Featured Fuel rewards programme – how to fill up on petrol and points

South Africa’s volatile economy has often meant that factors like the fuel price bear the brunt. This year alone the country’s fuel price has fluctuated by between R1.50 to almost R3, which has put increasing pressure on motorists. That said, many of the bigger South African brands have provided some relief by way of fuel rewards programmes.

Are you entitled to your spouse’s pension after divorce?

Divorce means more than just parting ways with your partner. It may also involve parting ways with your assets. The Divorce Act states that your retirement fund forms part of your assets. This means that it will be considered when dividing up your assets.

Retrenched – which payments are you entitled to?

In the current struggling economic climate, retrenchments are a regular occurrence and not everyone survives the cut. If you find yourself on the receiving end of retrenchment you may have questions about the payments that are due to you.

Do you want to settle your debt?

You may be considering settling your credit account, whether it’s a credit card or various store accounts, now may be as good a time as any. This especially if you have saved, or you received a tax return or salary bonus. 

Deals

Builders Black Friday Special

Price: R5000
When: Until 29 November 2019
Where: Online

Café Rousse Monday Special

Price: Available on request
When: Mondays
Where: Nationwide

Skye Bar Mojito Special

Price: R55
When: Until 31 December 2019
Where: Johannesburg