NCR to probe credit provider charging Sassa beneficiaries interest on loans

A leaflet which offers loans at 20% interest for the first two months and 25% thereafter to Sassa beneficiaries has been making the rounds in the Bishop Lavis area.

According to this leaflet, the credit provider requires an ID document, three months bank statements, two months payslip or Sassa statement as well as proof of address.

Manager for Registrations at National Credit Regulator (NCR), Zolile Mngqundaniso, confirmed that the credit provider is registered with their department as of September 2017 but they were not aware of the way they conduct business.

He says that the interest rate offered by this credit provider contravenes the National Credit Act.

Definitely the way they advertise and the interest rate they are charging is in contravention of the Act. The Act is specific and there are caps on the interest rate which is 5% per month and subsequent loan that follows is only 3% per month in that current calendar year.

Zolile Mngqundaniso, Manager for Registrations at NCR

Mngqundaniso says the matter will be referred to their investigation department to conduct a thorough investigation in the matter.

If indeed a contravention of the law is established, the matter will be passed on to the Tribunal who will then make a decision whether to de-register the entity.

All this probing should follow proper processes and the tribunal will make a decision whether the credit provider must refund all those consumers or completely close down.

Zolile Mngqundaniso, Manager for Registrations at NCR

To hear more of this interview, listen below:


This article first appeared on CapeTalk : NCR to probe credit provider charging Sassa beneficiaries interest on loans


Recommended

by NEWSROOM AI
Read More
Dros group responds after rape incident at Pretoria restaurant

Dros group responds after rape incident at Pretoria restaurant

The group released a statement on the alleged rape of a 6-year-old girl at one of its restaurants in Pretoria.

Traffic officer could have handled the matter differently

Traffic officer could have handled the matter differently

Richard Bosman says the R6000 traffic fine given to a man trying to save the life of an epileptic child can be disputed.

PIC media reports are misleading - Treasury

PIC media reports are misleading - Treasury

According to reports, CEO Dan Matjila claimed certain people wanted him removed so they could have "easier" access to PIC assets.

Banks are not in the business of repossessing homes - consumer advocate

Banks are not in the business of repossessing homes - consumer advocate

Stephen Logan, Founder of Fair Credit explains how to manage and avoid defaulting payment on your mortgage.

A short history of the uncovering of the Absa/Bankorp ‘lifeboat’ scandal

A short history of the uncovering of the Absa/Bankorp ‘lifeboat’ scandal

The Money Show’s Bruce Whitfield interviews Noseweek Editor Martin Welz, the man who broke the story back in the mid-90s.

NCR says 'no one is spared' in loan shark raids

NCR says 'no one is spared' in loan shark raids

Five alleged illegal credit providers have been arrested after Western Cape raids conducted by the National Credit Regulator.

Popular articles
[WATCH] The world literally laughs at Donald Trump

[WATCH] The world literally laughs at Donald Trump

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.

[LISTEN] Pallo Jordan says leaked Mbeki paper on land is 'unfortunate'

[LISTEN] Pallo Jordan says leaked Mbeki paper on land is 'unfortunate'

The leaked 30 paper, seemingly from the Thabo Mbeki Foundation, has been met with mixed reaction.

SA braces for horrific fuel price increases as oil hits 4-year high

SA braces for horrific fuel price increases as oil hits 4-year high

It's monstrous! The Money Show’s Bruce Whitfield interviews the Automobile Association of South Africa's Layton Beard.

Why installing a dash cam in your car is more necessary than you think

Why installing a dash cam in your car is more necessary than you think

Don't have a dash cam? A legal advisor at insurance broker RBS explains why you might want to reconsider.

Dros rape: 'He was sitting near the kid's play area...he had his eye on her'

Dros rape: 'He was sitting near the kid's play area...he had his eye on her'

The man allegedly attacked the six-year-old inside a toilet cubicle at a Dros franchise in Pretoria on Saturday.

'She says I'm just waiting for this c**lie to move so I can take the photo'

'She says I'm just waiting for this c**lie to move so I can take the photo'

A caller on the Eusebius McKaiser Show, Zeenat says she was called a derogatory word for Indian on Heritage Day.

[WATCH] Vietnam's The Bachelor uproar as female contestants run away together

[WATCH] Vietnam's The Bachelor uproar as female contestants run away together

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.