Creditors busted for Reckless Credit

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NCR Swoop on Creditors granting Reckless Credit

The National Credit Regulator and the SAPS have been busy again raiding the premises of various credit providers this month looking for instances of reckless credit granting. The Raids are the latests in the NCRs ongoing “Blitskrieg” to root out bad credit providers who are taking advantage of consumers and acting illegally.

Over the last while

So far the project has seen 76 people arrested and of them 64 criminal cases opened. The operation has also seen the NCR find over 4500 bank cards and more than 6500 pension cards which were illegally being kept by unscrupulous credit providers.

The Latest Raids

The November raids took place in Mpumalanga (in Nelspruit, Middleberg, Witbank and Barberton) and resulted in ten arrests.  Around 37 different credit providers were investigated. While many came up clean or with only minor things that needed attention ten people were arrested for illegal activities such as taking consumers ID books, Pension cards and bank cards as surety. The raids also focused on the issue of Reckless Credit. This is when consumers are granted (reckless) credit which creditors know they cannot afford to repay while still feeding their families and paying for essential expenses. Reckless credit causes consumers to be pushed beyond the point where they have enough money for necessities.

The National Credit RegulatorThe exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated,” said NCR CEO Nomsa Motshegare.



Naughty Naughty

Those creditors who were arrested were found to illegally be in possession of more than 850 ID books, over 900 bank cards, six consumers passports, two driver’s licences, and 44 cellphones. These creditors were hanging onto these illegally as a form of surety. If a creditor asks you for any of these items you should refuse and report them to the NCR swiftly so they can investigate.

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