Capitec and Summit Kiss and Make Up
Over the last while, Summit Financial Partners (Summit) and Capitec Bank have been at each other’s throats over accusations of reckless lending. Things got ugly as the National Credit Regulator and the Courts got drawn into the furore.
‘Summit has brought five different cases as well as a complaint to the National Credit Regulator (NCR) against the bank’
Over the last two years, Summit has brought five different cases as well as a complaint to the National Credit Regulator (NCR) against the bank. Most of the dispute relates to a multi-loan product which Capitec used to offer but pulled the plug on in February 2016 (when they began to offer credit cards).
After years of fighting the two parties have now reached an accord and the matters have been settled out of court (they paid people money to stop the legal action). Capitec says that the court costs were just going to mount and they would rather deal swiftly with the matters than drag things out. There was, obviously, also the risk of the court cases – if the rulings went against Capitec – triggering a wave of legal action from other consumers who made use of the same product in the past. Summit say they are happy not only for the affected consumers but also since Capitec stopped offering the product several years ago now.
The two firms have agreed to also work together in the future in a new partnership to promote, among other things, workplace financial education.
Not Everyone Loves Capitec …Yet
Capitec and another firm called Viceroy are still in conflict over claims that the firm has made over Capitec’s lending practices and book. Capitec has received strong support from local institutions (like the Reserve Bank) who are all adamant that Viceroy’s claims are unfounded and perhaps simply financially motivated.
Viceroy Concerns About Capitec Early on Tuesday morning research group, Viceroy issued an alarming 33-page report called: Capitec: A wolf in sheep’s clothing. In the report, they made serious allegations that the bank was inflating some financial figures and concealing problems … read more
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Monthly Repayments of R75 000 on Presidential Salary The FF Plus are calling on the National Credit Regulator to investigate the loan of nearly R8 million given to President Zuma for his part of renovations at Nkandla. They feel that … read more
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Public Protector To Investigate NCR Over Inefficiency Recently Parliament has been unsatisfied with the statistics they are receiving about consumers who are over-indebted. There was great hope that the creation of the National Credit Act (NCR) back in 2007 would … read more
DTI & NCR Will Ask For Additional Authority This week Parliament was pitched by the Department Of Trade & Industry (DTI) in an effort to acquire further authority and powers for both the DTI and National Credit Regulator (NCR). Capitec Bank … read more
NCT Case Against Capitec Bank Dropped By NCR Capitec Bank have taken on over 600 000 new clients in the last 6 months and has been winning international acclaim. Share prices are up and now it seems in further good … read more
NCR Investigate African Bank When the recent Myberg Report into the collapse of African Bank* came out, so did information about how the NCR had refused to assist the commission in their investigation into the causes of the banks collapse. This … read more