Regulator refers 13 credit providers to consumer tribunal
The unlawful retention of clients’ pension and bank cards‚ identity documents and PIN numbers as surety was among the reasons 13 credit providers were referred to the National Consumer Tribunal (NCT) in the last week.
The National Credit Regulator’s (NCR) Jacqueline Boucher on Friday said that it was “intensifying its effort to detect reckless lending and the retention of consumer bank cards and identity documents”.
Earlier this month‚ the NCR conducted raids in Limpopo‚ include areas surrounding Thohoyandou and Makhado‚ as part of its investigations into the 13 credit providers.
Those raids led to the arrest of eight individuals who contravened the NCA. They were found to be in possession of 930 bank and pension cards and 149 IDs.
On Friday‚ the NCR said the investigations also revealed the 13 entities were:
- Extending credit recklessly to consumers;
- Failing to provide pre-agreement quotations to consumers;
- Charging interest in excess of the prescribed maximum rates; and
- Overcharging of service fees.
“The NCR will continue to take enforcement action against entities who extend credit recklessly to consumers and reminds credit providers that keeping pension cards‚ bank cards and identity documents is a criminal offence”‚ said Boucher.
It wants the NCT to order the entities to:
- Refund the affected consumers;
- Interdict them from continuing with their unlawful conduct; and
- Impose an appropriate administrative fine.