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It’s Illegal To Offer Credit Without Being Registered

A 33-year-old women called Nozipho Yolanda Precious Mabuza, who was operating as a credit provider, was arrested this month by the Hawks.

The Hawks, accompanied by members of the National Credit Regulator (NCR) swooped down on the illegal credit providing operation in Hazyview (called Humelela Cash Loans) which Ms Mabuza was running without having registered with the NCR.

It is illegal to lend money and charge a fee or any interest unless you register with the NCR. Also, those who offer credit have to stick to the requirements of the National Credit Act (NCA). The NCA regulates fees, interest that is allowed to be charged and prohibits taking peoples personal documents or cards as surety for loans.

At the premises of the Humelela Cash Loans office (and or home of the operator), the Hawks found over 500 bank cards and Sassa grant cards, as well as, identity documents of clients that the illegal credit provider illegally demanded to keep.

‘the Hawks found over 500 bank cards and Sassa grant cards’

They also found over R36 000 in cash (which was then seized).

The items will now be returned to the rightful owners.

If you take out a loan then make sure to deal with legitimate credit providers (they will have a certificate from the NCR displayed and NCR sticker on their door with a registration number). A legitimate credit provider will never ask you for your documents, bank cards or bank pin.