Capitec Bank in hot water for alleged abuse of short term credit facilities

Capitec bank has been hauled to court for alleged abuse of short term credit facilities or profiting from charges for cheques not done.

The complainant, Summit Financial Partners, has claimed that the bank's practices amounted to reckless lending and brought in unjustified profits.

In 2013, the National Credit Regulator (NCR) launched the similar case with the Consumer Tribunal. Lesiba Mashapa, NCR Secretary, says they lost the case in 2013 because the Tribunal said they needed to have suspicion that Capitec was doing something wrong.

The complaint was launched with us sometime last year. We investigated the complaint and referred it to Consumer Tribunal. But I must also say that in 2013, the NCR initiated an investigation into Capitec, and we refereed that complaint to the tribunal. The problem that we encountered from the tribunal was the interpretation of our investigation powers. The tribunal said because we didn't have a reasonable suspicion that Capitec was doing anything wrong when we initiated the 2013 complaint, they decided to declare that complaint and investigation invalid.

Lesiba Mashapa, National Credit Regulator Secretary

It was an issue of different interpretation between us and Capitec. What we found was that Capitec would enter into one agreement with a consumer, and in terms of that agreement the consumer, and in terms of that agreement that's signed only once, the consumer would be entitled to loan starter revolving. In terms of the act, the initiation fee can only be charged for that one agreement. So if there are any subsequent loans that are drawn down on that agreement, our interpretation is that initiation fee can no longer be charged.

Lesiba Mashapa, National Credit Regulator Secretary

In our findings, we found that it's consumers who were merely confirming that their financial circumstances have not changed since the signing of the credit agreement.

Lesiba Mashapa, National Credit Regulator Secretary

Listen to the audio below for more information.

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Update: Former athlete receiving help from Ombudsman after housing issues

Update: Former athlete receiving help from Ombudsman after housing issues

Ombudsman for Community Schemes, Themba Mthethwa has stepped in to help Thulani Sibisi secure occupation to his house.

 "An inflation target debate is unnecessary at this stage" - Chief Economist

"An inflation target debate is unnecessary at this stage" - Chief Economist

Kevin Lings, Chief Economist at Stanlib says he would advise against changing South Africa's inflation target.

Unilever and Department of Education collaborate to improve hygiene in schools

Unilever and Department of Education collaborate to improve hygiene in schools

The initiative will be rolled out in September at 15 000 public primary schools says Angie Motshekga.

The spies at Saxonwold

The spies at Saxonwold

Associates of the Gupta family spied on Julius Malema, Trevor Manuel and his wife, Maria Ramos.

Denosa vehemently denies torching the South African Nursing Council property

Denosa vehemently denies torching the South African Nursing Council property

Denosa's grievances began when a leaked exam paper was cancelled resulting in students told they would need to rewrite the paper.

Grieving Ekurhuleni mother thankful for support during mortuary ordeal

Grieving Ekurhuleni mother thankful for support during mortuary ordeal

Colleen Duister buried her child last week Friday and the family is starting to pick up the pieces after the mortuary strike saga.

Popular articles
So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

Spur's 'Monday burger' special extended until June

Spur's 'Monday burger' special extended until June

Spur says they are spreading some good news with their promo extension.

Last chance for Spur's 2-for-1 burger special this Monday

Last chance for Spur's 2-for-1 burger special this Monday

Monday (March 27) is your last chance to sink your teeth into the popular burger special which Spur will discontinue from April.

Money market accounts (and Exchange Traded Funds) FAQs answered

Money market accounts (and Exchange Traded Funds) FAQs answered

Personal finance guru Warren Ingram explains what money market accounts are and the difference between various ETFs.

Stephen McGowan's family still hoping for his return after 2011 Mali abduction

Stephen McGowan's family still hoping for his return after 2011 Mali abduction

The Gift of The Givers and the government are both working to secure his release.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?