Credit regulator partners with police to curb abuse by money lenders
During the operation, 10 people were arrested and as a result, 9 criminal cases were opened. In addition, the suspects were found to be in possession of 851 ID books and 921 bankcards, 6 passports, 2 drivers licenses and 44 cellphones.
In a bid to stem the abuse of consumers by lenders and ensure compliance with the National Credit Act (NCA), the National Credit Regulator (NCR) and the South African Police Service (SAPS) conducted joint onsite investigations, in an operation in Mpumalanga.
The NCR partnered with the SAPS in Middleburg, Barberton, Nelspruit and Witbank this week investigating 37 lenders. This led to the arrest of 10 individuals who contravened the NCA.
“The focus of this kind of operation is primarily on credit providers who are engaging in reckless lending, unlawfully garnishing, retaining pension cards, bank cards, identity documents and personal identity numbers (PIN) of their clients as surety,” said Nomsa Motshegare, CEO of the NCR. “This is a contravention of the National Credit Act and it is a criminal offence”, she added.
Motshegare stated that this is part of the NCR’s ongoing strategy to ensure that all credit providers, no matter where they conduct business, comply with the provisions of the National Credit Act.
“The exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated,” she added.
During the operation, 10 people were arrested and as a result, 9 criminal cases were opened. In addition, the suspects were found to be in possession of 851 ID books and 921 bankcards, 6 passports, 2 drivers licenses and 44 cellphones.
Motshegare complimented the SAPS for their excellent assistance to the NCR during this operation, and for their willingness to assist consumers.
“This operation was definitely not the last of its kind. Such operations are conducted nationally in different parts of the country. Credit providers should be warned that the NCR will not condone any contraventions by credit providers”, concluded Motshegare.
