Limpopo loan shark arrested for seizing social grant cards

Hawks‘ Serious Commercial Crime unit in Limpopo recently swooped in on a network of unregistered loan sharks that were preying on financially vulnerable individuals.

According to police, the operation was carried out in collaboration with the National Credit Regulator after numerous complaints were received regarding the dodgy money lending business.

“The investigative team thereby launched a search and seizure operation in Elim, just outside Makhado, on 23 May 2023, resulting in a startling discovery of the illicit practices,” explained police spokesperson, Lieutenant Colonel Matimba Maluleke.

Police confiscating hundreds of Sassa cards, Identity Documents, disability agreement files, and child support grant agreement files that were taken as collateral for loan repayment.

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Micro cash loans

Maluleke confirmed that the unregistered micro cash loan business under investigation was found to be targeting individuals in desperate need of financial assistance.

“Exploiting their vulnerability, the money lenders would confiscate essential documents such as identity documents, South African Social Security Agency (Sassa) cards, disability agreement files, and child support grant agreement files, as collateral for loan repayment,” he said.

The investigation led the law enforcement team to the offices in Elim, where they encountered employees actively engaged in the exploitative lending practices.

“In a decisive move, the team conducted a raid, seizing a significant volume of incriminating evidence,” Maluleke said.

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During the operation, authorities confiscated a staggering 389 identity documents, 47 Sassa cards, 8 Easypay green cards, 7 Classic Sure cards, 72 miscellaneous bank cards, 5 disability agreement files, 21 Senior Citizens’ files, 18 child support grant agreement files, 33 employee agreement files, 1 cash loan register, and 1 NuPay speed point.

Predatory practices

While no arrests were made during the operation due to the absence of the business owner, Maluleke said that law enforcement agencies are actively pursuing the individual responsible for orchestrating this exploitative scheme.

“The owner is expected to face severe legal consequences for operating an unregistered financial institution and for engaging in predatory practices that take advantage of vulnerable individuals during their time of financial hardship,” he said.

The Hawks, together with the National Credit Regulator, are urging the public to not engage the service of similar unscrupulous money lenders and any other unregistered financial entities.