National Credit Regulator pounces on ‘loan sharks’

The National Credit Regulator (NCR) has intensified its mission to flush out unscrupulous lenders and undertook last week an operation jointly with the South African Police Service (SAPS) which led to 10 arrests in the Mpumalanga Province.

The NCR revealed the operation in a press statement released on Friday. It said it was upping the fight against lenders flouting the National Credit Act.

The NCR said it partnered with the SAPS in Middleburg, Barberton, Nelspruit and Witbank in investigating 37 lenders. This led to the arrest of 10 individuals who contravened the NCA.

NCR CEO Nomsa Motshegare said “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. This is a contravention of the National Credit Act and it is a criminal offence”, she added.

“The exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated,” she added.

The NCR said 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.”

“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.

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