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
Former media exec molested 'hundreds' of boys and young men - Deon Wiggett

Former media exec molested 'hundreds' of boys and young men - Deon Wiggett

The final episode of Deon Wiggett's podcast series 'My Only Story' has been published in collaboration with News24.

'We're ready and able to deal with increased online payments on Black Friday'

'We're ready and able to deal with increased online payments on Black Friday'

PayFast MD Jonathan Smit says the spread of technologies available should help mitigate risk of compromising payment systems.

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
COVID-19 claims two more lives and positive cases now sit at 1,505

COVID-19 claims two more lives and positive cases now sit at 1,505

Health Minsiter Zweli Mkhize briefed the nation from the Khayelitsha Hospital in the Western Cape on Friday afternoon.

Soul singer Bill Withers dies

Soul singer Bill Withers dies

According to a statement released by his family a short while ago, Withers died of heart complications.

 FF Plus founder Constand Viljoen dies at age 86

FF Plus founder Constand Viljoen dies at age 86

The former South African Defence Force commander died earlier on Friday due to what's been described as natural causes.

Ipid investigates after 8 deaths recorded since lockdown

Ipid investigates after 8 deaths recorded since lockdown

About a week into the national lockdown, the Ipid said it was working on 12 cases where officers have been implicated in wrongdoing during this period.

Premium spirits distributor pledges R2m to support bartenders and waiters

Premium spirits distributor pledges R2m to support bartenders and waiters

The initiative by Pernord Ricard South Africa will benefit at least 1,000 workers affected by the lockdown.

UJ makes use of 3D printing to make surgical face shields

UJ makes use of 3D printing to make surgical face shields

Library and Information Centre executive director professor Maria Frahm-Arp says the shield is reusable.

Construction company offers sanitisers and soaps to those in need

Construction company offers sanitisers and soaps to those in need

Hallfax CEO Femi Adeleke explains how the process of giving away the sanitisers work.

Lawyers for Human Rights want waste reclaimers to continue working

Lawyers for Human Rights want waste reclaimers to continue working

The organisation says it has sent a letter of demand to the City of Tshwane with no response.

Don't let FOMO get to you, join the baking club with these simple bread recipes

Don't let FOMO get to you, join the baking club with these simple bread recipes

Food critic Anna Trapido says baking can be quite soothing and people are looking for that.

[LISTEN] Here are some virtual travel suggestions for the lockdown

[LISTEN] Here are some virtual travel suggestions for the lockdown

Azania Mosaka speaks to travel correspondent Gabbi Brondani Rego on how you can still experience the world's best attractions.