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CityPress - - Business - COM­PILED BY AN­GELIQUE RUZICKA

EA­GLE CASH LOANS FINED R250 000 FOR RECK­LESS LEND­ING

Western Cape-based Ea­gle Cash Loans was fined R250 000 af­ter the Na­tional Con­sumer Tri­bunal handed down a judg­ment on the credit provider and can­celled its reg­is­tra­tion.

This fol­lowed an in­ves­ti­ga­tion by the Na­tional Credit Reg­u­la­tor (NCR) into the lend­ing ac­tiv­i­ties of the busi­ness, which re­vealed that it reck­lessly lent money to con­sumers and re­tained their bank cards and iden­tity doc­u­ments in con­tra­ven­tion of the Na­tional Credit Act (NCA).

“The NCR views the con­tra­ven­tions of the NCA com­mit­ted by the credit provider in a se­ri­ous light and urges credit providers to step up their ef­forts to com­ply with the law,” said Jac­que­line Peters, man­ager of in­ves­ti­ga­tions and en­force­ment at the NCR.

“Con­sumers are urged to en­sure that they only ap­ply for credit from credit providers who are reg­is­tered with the NCR. Credit agree­ments con­cluded by un­reg­is­tered credit providers are un­law­ful and in con­tra­ven­tion of the NCA,” added Peters.

“Credit providers are re­minded that the over­charg­ing of in­ter­est and/or fees un­der a credit agree­ment is now a crim­i­nal of­fence. Crim­i­nal charges will be laid by the NCR against credit providers over­charg­ing con­sumers,” she said.

FSB WARNS AGAINST PREVE CON­SULT­ING

The Fi­nan­cial Ser­vices Board (FSB) is warn­ing the pub­lic against Preve Con­sult­ing, which is so­lic­it­ing money from un­sus­pect­ing in­di­vid­u­als and promis­ing them high and un­re­al­is­tic in­ter­est rates within five to 30 days.

Preve claims on its web­site, pre­ve­con­sult­ing.co.za, to be an au­tho­rised Fi­nan­cial Ser­vices Provider (FSP), op­er­at­ing un­der FSP num­ber 182. How­ever, this FSP num­ber be­longs to FNB Se­cu­ri­ties, which has stated that it has no busi­ness re­la­tion­ship with Preve Con­sult­ing, nor has it au­tho­rised the com­pany to use its FSP num­ber.

Preve Con­sult­ing is not au­tho­rised in terms of the Fi­nan­cial Ad­vi­sory and In­ter­me­di­ary Ser­vices Act to render any fi­nan­cial ad­vice or in­ter­me­di­ary ser­vices. Any­one that sells a fi­nan­cial prod­uct, or pro­vides fi­nan­cial ad­vice, must be li­censed by the FSB and should have a valid FSP num­ber.

FSB: MADODA FOREX MAY NOT TAKE YOUR MONEY

Like Preve Con­sult­ing, Madoda Forex has also been flagged by the FSB for so­lic­it­ing money from un­sus­pect­ing in­di­vid­u­als and promis­ing un­re­al­is­tic in­ter­est rates payable within five to 20 days. On its web­site, madodaforex­trad­ing.com, there is a copy of a cer­tifi­cate claim­ing that the en­tity is au­tho­rised as a forex trad­ing agency in terms of sec­tion 5 of the Credit and Fi­nan­cial Ser­vices Act of 2012 (Act No. 24 of 2012). How­ever, Madoda Forex is not au­tho­rised in terms of the Fais Act to render any fi­nan­cial ad­vice and in­ter­me­di­ary ser­vices.

If you want to check if a fi­nan­cial en­tity is li­censed by the FSB, call them on the toll-free num­ber 0800 110 443, or you can visit their web­site at fsb.co.za.

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