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 Debt counselling – the two sides of the coin

Being overindebted doesn’t just put a strain on your personal finances; it also puts a strain on your state of mind. The best solution is to start the process of debt counselling so that you can escape the debt cycle. But what are the ups and downs of joining this debt relief programme?

Travel ban – how to claim for the loss incurred

As with the recent Covid-19 pandemic, governments sometimes issue travel bans to prevent people from travelling to other countries. This becomes even more complicated if you’ve already planned and paid for your trip. Your flights will be cancelled, and you may lose money from cancelled accommodation arrangements. How do you claim for the financial losses incurred due to a travel ban?

How to finance and insure a second-hand vehicle

Buying a second-hand vehicle may suit your budget better than acquiring a new one. But what impact does an older model have on vehicle finance and car insurance? We reached out to specialists in the field to explain what the financial implications are of pursuing a second-hand vehicle.

Reading your loan agreement: look out for this

Many people don’t read their loan agreements. They just sign on the dotted line without realising that they could be signing their lives away. But it’s important to review your loan agreement before and after taking your loan to avoid future setbacks.



Udemy online course for R180

Price: R180
When: Until 27 March 2020
Where: Online

Educate your kids for free with Skills Share

Price: Free
When: Daily
Where: Online

Take advantage of payment holidays from Standard Bank and Nedbank

Price: Free
When: From 1 April to 30 June 2020
Where: Nationwide