Loan sharks prey on elderly

15 September 2015 - 02:24 By Wendy Knowler

Imagine giving up custody of your bank card, pension card or ID document to a stranger who escorts you to the ATM or pension point every month so you can withdraw money and hand some of it over. It's both a criminal offence and a contravention of the National Credit Act for money lenders to do this, but many continue to do so to ensure they get their money back - with crippling interest.In its latest raid on such "credit providers", the National Credit Regulator confiscated 71 pension cards and seven ID books from 22 operators in the Western Cape last week.Five individuals were arrested, the regulator's acting manager for investigations and enforcement, Jacqueline Boucher, said yesterday.Consumers give up their cards to money lenders out of ignorance and desperation."The exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated," Boucher said."This is definitely not the last investigation of this kind."The 22 credit providers - operating in Wellington, Paarl, Stellenbosch, Strand, Woodstock, Robertson, Bellville, Goodwood and Wynberg - included many operating established businesses, registered with the regulator.It will be a while before the pension cards, bank cards and ID documents are returned to their owners; they have been taken into police custody while the criminal investigations are under way.The regulator will investigate whether or not the raided money lenders are complying with the National Credit Act with regard to affordability assessments, overcharging and other criteria.When that process is complete, the cases will be referred to the Consumer Tribunal.Meanwhile, the credit providers in question will continue to operate...

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