NCR Don’t Get Their Way at Tribunal

NCR has a bad run at the NCT

The NCR conducted an investigation into credit provider Moneyline and Cash Paymaster Services (CPS) and then issued two compliance notices demanding that the companies change the way they do business. In particular the NCR said that Moneyline were getting information about the spending patterns of people getting social grants and to deposit loans into their Grindrod Bank accounts.

The compliance notice said that Moneyline (and CPS) had to change the way they do business and have an audit showing they had sorted out the issue.

We never did that!

Both Moneyline and CPS (with the backing of Net1) came out swinging and denied that they were doing any such thing or that they were breaking the National Credit Act.  Net1 is the parent company of Moneyline. They went into the press and made strong statements about the matter [careful you don’t bring the NCR into disrepute guys].

NCT Shoots NCR Down

The matter went to the National Credit Tribunal (who rule on such matters) who recently threw the compliance notices out. Moneyline and CPS are very happy about this of course. This is a big deal because the NCT have basically indicated that the NCR were wrong in their findings. Equally as obviously the NCR are not happy.

Shut Moneyline Down

Following the original investigation the NCR also made an application to the National Credit Tribunal to deregister Moneyline (Moneyline Financial Services) because they were not obeying the National Credit Act. This means that Moneyline would have to shut its doors and all the staff would lose their jobs etc.

Last Minute Change

Recently however the NCR has tried to change it’s application to the NCT (maybe because they got blown out of the water on the compliance notices). The NCT are now holding a special hearing to decide if the NCR can do so before they then consider the application to shut Moneyline down or whatever the NCR now asks of the tribunal.

In the past the NCR has often come to a settlement with companies it is taking to the NCT – such as happened with African Bank in regard to reckless lending (before the banks share collapse which only happened later)- prior to the matter being heard. This does not mean the NCR is scared of fighting the matter out at the NCT however.  The NCR have successfully had some Debt Counsellors and small credit providers deregistered by the NCT in the past. This recent matter with Moneyline and CPS has however not been a great result for the NCR who continue to fight to  find their place in the ongoing developments surrounding the twin peaks regulatory process.

.
Debtfree will report on the application to have Moneyline deregistered when the matter is heard by the NCT.