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Illegal Credit Providers Arrested

The Police have arrested 3 men who were illegally giving out loans in Mpumalanga.

The Hawks have nabbed another 3 illegal credit providers in their latest raids as they try to shut down illegal Mashonisas across the province.

Mashonisas Must Register

Money lending in communities across South Africa is a long standing tradition with its history in the Apartheid years (and even earlier) but with the introduction of the National Credit Act in 2007, it soon became illegal for people to offer credit without registering with the National Credit Regulator or NCR (and having to stick to the National Credit Act and Regulations).

‘Mashonisas have a bad reputation for outrageous interest rates that far exceed those allowed by law’

The National Credit Act and regulations set maximums on fees that can be charged and limits interest to ensure consumers are not taken advantage of. Mashonisas have a bad reputation for outrageous interest rates that far exceed those allowed by law.

Holding Clients Bank and Sassa Cards

The Hawks found that the illegal credit providers had also taken 18 Sassa cards from clients and had 19 bank cards belonging to consumers. They were then using these cards and the pins from the clients to draw repayments on loans.

This is illegal as these items can only be used by the consumer and not a 3rd party.

Off To Court

The men, Zelda Kandabile (33), Sibusiso Nyundu(36) and Baby Miko (41) were all arrested and appeared in court this month. They have since been given bail (of R1500) and will appear back in court just before the courts close in December this year.

The cops have once again urged consumers to rather deal with regulated and registered credit providers who stick to the law and will not come bashing on your door with a baseball bat.