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.