NCR cracks down on Credit Providers
In recent months the National Credit Regulator has been engaging in a campaign to crack down on illegal actions by smaller credit providers. As such they have visited various provinces and have in conjunction with law enforcement raided several credit providers offices to see if illegal activity was taking place.
A NCR raid,in June, of naughty credit providers called: Operation Siyanda , has led to the arrest of 13 credit providers, and the recovery of around 130 ID books. The operation took place in Upington, Keimos, Kakamas and Groblershoop and involved the investigation of 32 different credit providers.
Nomsa Motshegare, CEO of the NCR said in regard to the operation that “the exploitation of vulnerable and unsuspecting consumers…” (such as the elderly or those with limited education) “…by credit providers will not be tolerated…”
Also recovered in the NCR raid were around 5500 pension cards which the 13 credit providers, who were arrested, had taken away from the elderly.
A further 1700+ bank cards were recovered. The Credit Providers had taken these as collateral and where using them to draw payments at the end of each month.
The NCR warn that they will not condone “any contraventions by credit providers”. Recently the NCR have also referred Capitec and African Bank to the National credit tribunal in regard to contraventions of the NCA and have asked for sizable fines.
The NCR takes complaints in regard to the credit industry and can assist consumers with problems they are having. Recently they have encouraged all role players to use them exclusively as a point of contact for complaints rather than other industry bodies such as the NDMA or DCASA etc. They can be visited at: http://www.ncr.org.za/index.php