NCR Chases Deregistered Credit Provider MSF
Consumers who are investing with MSF and Loxfin are being promised a return of 13.5% per year through their clever way of investing in mortgage bonds. What they don’t know is that MSF (Mortgage Secured Finance) is in a running battle with the National Credit Regulator (NCR).
The NCR says that MSF was previously registered as a credit provider but decided to not renew their registration in 2016. The media is now reporting that the company is still busy offering credit, which would be illegal if true. Only NCR registered individuals and companies are allowed to offer any form of credit for profit.
‘Only NCR registered individuals and companies are allowed to offer any form of credit for profit’
He Said/She Said
The NCR are also reporting that they are already busy with litigation (court action) against the company over other matters. MSF, however, say this is not true.
Investors are told that Loxfin is a financial services provider (or FSP) but Loxfin had its FSP licence withdrawn back in 2012 already. Loxfin and MSF are presented as two cooperating companies but it turns out that they share the exact same directors and even office address and contact info. this is not the only area of concern for investors.
Loxfin and MSF are said to be receiving loans from members of the public (the investors) and lending these to a 3rd party thus they may also be conducting the business of a bank which would put them in contravention of the Banks Act if true. They have as a result now attracted the attention of the SA Reserve Bank who are looking into the matter.
The NCR To Take Further Action
During a hearing at the National Consumer Tribunal, the NCR learned that MSF are currently still collecting on debts even though they cancelled their NCR registration. The NCR say that they are now going to be pursuing new action against MSF for doing so.
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