Credit provider fined a Million Rand

MBOMBELA- A locally based credit provider had been fined a R 1 million for contravention of National Credit Act.

According to a media statement from the National Credit Regulator, Akudle Kutishiyele (Akudle) had been found guilty of extending credit while not being registered as well as retaining its consumers’ bank cards and identity documents for the purpose of collecting or enforcing the credit agreements amongst other charges.This forms prohibited conduct by the National Consumer Tribunal (NCT) hence the harsh judgement.

Investigations by the National Credit Regulator (NCR) into the activities of Akudle Kutishiyele revealed that the businesses contravened of the National Credit Act (NCA).

“Akudle continued to conduct business of a credit provider after its registration lapsed due to non- payment of annual registration fees, it also failed to conduct affordability assessments when granting credit and failed to provide consumers with copies of pre-agreement statements and quotations. The company was also found guilty of retaining consumers’ bank cards and identity documents for the purpose of collecting or enforcing the credit agreements,” states a media release from the NCT.
The manager of NCR’s investigations and enforcement department Jacqueline Boucher hence reminds Credit Providers of their duty to ensure that their registration fees were paid and kept updated.
“Credit providers are reminded that it is their duty to ensure that their registration fees are paid and up to date at all times. Continuing to trade after the lapse of their registration due to non-payment of registration fees is a serious contravention
of the NCA. The actions of credit providers who do not fully comply with the NCA will not be tolerated and the necessary enforcement action will be taken”, says Boucher.