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Hawks Raid 4 Illegal Credit Providers

The Hawks have conducted 4 raids on illegal credit providers operating in the North West.

It is illegal for a person to offer credit for profit (or where they charge any type of fees or interest) without registering as a credit provider with the National Credit Regulator (NCR).

It is also illegal for a credit provider to take a customer’s ID Documents, Bank cards or SASSA cards as a form of surety. 

Sometimes loansharks will demand these items from clients and then illegally use them to recover amounts that have been loaned. Only the owner of such items has a legal right to make use of them and it is an offence under the National Credit Act (and other Acts).

‘the 4 businesses were shut and the operators arrested’

As a result of the raids in the North West town of Coligny, the 4 businesses were shut and the operators arrested. Each of the illegal credit providers paid a R5000 admission of guilt fine and have now been told how they can register with the NCR and run a legal operation.

Complaining Can Work

This just goes to show that it is worthwhile for consumers to report illegal credit providers to the National Credit Regulator (and SAPS) though it may not seem like they are taking action immediately.


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