Money lender has registration cancelled

22 September 2015 - 13:45 By RDM News Wire

Repeated contraventions of the National Credit Act (NCA) have resulted in a Barberton-based credit provider having its registration cancelled. The National Consumer Tribunal (NCT) announced on Tuesday that it had taken the action against Mayibuye Cash Loans after a “lengthy investigation by the National Credit Regulator (NCR)”.Mayibuye was also ordered to “refund all consumers who have been overcharged; and pay an administrative fine of R500,000”.The NCT said Mayibuye’s “main contraventions” included the “failure to conduct affordability assessments; failure to provide copies of pre-agreement statements and quotations; and charging of interest and fees in excess of the prescribed rate”.“The actions of credit providers who do not fully comply with the NCA will not be tolerated and the necessary enforcement action will be taken‚” said Jacqueline Boucher of the NCR’s investigations and enforcement department.“In terms of the NCA‚ failure to comply with an order of the NCT is a criminal offence and a person convicted of such an offence will be liable to a fine or imprisonment not exceeding 10 years or to both such fine and imprisonment.”This is the latest in an uptick in the activities of the NCR‚ which recently raided “credit providers” and confiscated 71 pension cards and seven ID books from 22 operators in the Western Cape”.Times Media’s consumer columnist Wendy Knowler wrote last week that ignorant or desperate people often give up custody of a bank card‚ pension card or ID document to a someone who escorts them to an ATM or pension point every month to make loan repayments.“It’s both a criminal offence and a contravention of the NCA for money lenders to do this‚ but many continue to do so as means of ensuring they get their money back — with crippling interest‚” Knowler wrote.Business Day had earlier reported that the NCR “would be tightening the screws on unscrupulous lending practices to ensure compliance”.NCR CEO‚ Nomsa Motshegare said the regulator “was toughening its stance because not all lenders were playing by the rules” and “inspections would continue to ensure that lenders adhered to regulations”.These efforts‚ Motshegare said‚ will be bolstered by a raft of regulations proposed by Trade and Industry Minister Rob Davies’ department...

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