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NCR issue Compliance Notice to Capfin

The National Credit Regulator(NCR) has announced that it has issued a Compliance Notice (warning to pull up their socks) to Southern View Finance trading as or better known as Capfin  for breach of the National Credit Act.

NCR Logo

This latest credit provider  investigation by the NCR revealed that:

Capfin do not get and then verify proof of consumers’ income. So there is no guarantee that the consumer is earning a certain amount they might claim. This is an obligation laid on credit providers who have to check what consumer say. Capfin also does not require consumers to provide other supporting info or documents  when determining the ability that consumers actually have to repay the credit they apply for. Another issue is that the NCR say that Capfin’s adverts mislead and/or deceive consumers into believing that income verification and supporting documentation are not requirements for affordability assessments.

In a related matter it came out that Capfin don’t actually keep records of documentation they drew to support of affordability assessments.

It seems that Capfin have been too fast and easy in regard to getting paperwork and keeping it.

What will Capfin do?

The NCR compliance notice requires Capfin to submit a full audit report to the NCR that confirms that they have implemented systems and procedures to comply with the NCA and these issues specifically. Capfin need to get that ready and make needed changes swiftly or face a big fine and in an extreme situation possible deregistration