NCT imposes a R420 000 fine and cancels the registration of Credit Care
Following investigation by the NCR the National Consumer Tribunal (NCT) have imposed a fine of R420 000.00 and cancelled the registration of Credit Care (Pty) Ltd.
Credit Care have been operating in Orkney, Kanana and Klerksdorp in the North-West province. The NCR investigation showed that Credit Care had been granting credit illegally to consumers were under administration, did not give consumers pre-agreements (a quotation) before entering into credit agreements, had improperly split loans just so that they could charge more interest and extra fees and had required consumers to sign agreements which said they were not allowed to apply for debt counselling (Debt Review).
All is FINE
During November the NCT eventually ordered the cancellation of Credit Care and also ordered an administrative fine of R420 000. The fine has to be paid within 30 days.
Nomsa Motshegare, CEO of the National Credit Regulator has said: “The NCR views contraventions of the National Credit Act in a serious light given the negative consequences for consumers. Credit providers are urged to comply with the Act, regulations and their conditions of registration”.