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
'Don't ban cellphones in schools, rather teach kids how to use them to learn'

'Don't ban cellphones in schools, rather teach kids how to use them to learn'

Educational Technologist Bilal Kathrada says effective strategies should be developed to help children use cell phones effectively.

Gigaba's resignation a tactic to escape accountability: Mantshantsha

Gigaba's resignation a tactic to escape accountability: Mantshantsha

Deputy Editor at Financial Mail analyses some of the financial news that made headlines this week.

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
[LISTEN] Beware of the 'money bomb' scam this festive season!

[LISTEN] Beware of the 'money bomb' scam this festive season!

CEO of SA Banking Risk Information Center, Kalyani Pillay chats about the new festive season scam that's robbing people blind.

I broke my cell & deactivated my account after I saw Gigaba's vid - Coconut Kelz

I broke my cell & deactivated my account after I saw Gigaba's vid - Coconut Kelz

In the Current Affairs segment, satirical comedian Coconut Kelz chats about the real reason behind Malusi Gigaba's resignation.

[LISTEN] Cervical cancer is the only cancer that is caused by sex - Dr Eve

[LISTEN] Cervical cancer is the only cancer that is caused by sex - Dr Eve

Dr Eve discusses cervical cancer and how it can be prevented.

[LISTEN] Is Gqom really music? Callers share their views

[LISTEN] Is Gqom really music? Callers share their views

Callers on the open line discuss class appropriation by musicians and music genres.

Angry customer stops at nothing to expose bad service at upmarket hotel

Angry customer stops at nothing to expose bad service at upmarket hotel

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

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

Gift of the Givers' Dr Imtiaz Sooliman – angel amongst men – talks about money

"I have no desire for clothes. I have no desire for holidays. I have no desire for outings. All I see is the suffering of people…"

Telkom 947 cycle challenge road closures update

Telkom 947 cycle challenge road closures update

Joburg motorists are urged to take note of road closures during the 2018 Telkom 947 Cycle Challenge.

Nondisclosed medical conditions may not matter in death claims - Ombudsman

Nondisclosed medical conditions may not matter in death claims - Ombudsman

32-year-old Brent Kruger was gunned down in gang crossfire but his life policy was denied by Old Mutual.