CityPress - - Business & Tenders -

Thabo writes:

I re­ceived a re­sponse from Udu Loans in­di­cat­ing that my loan re­quest had been ap­proved. I am, how­ever, scep­ti­cal of the com­pany be­cause it is ask­ing me to pay what it calls a “loan le­gal­i­sa­tion fee” be­fore it can sup­ply me with the money. This made me sus­pi­cious. Is it even a le­gally reg­is­tered fi­nan­cial en­tity or is it just some scam­mer pounc­ing on des­per­ate peo­ple?

City Press replies:

It is good that you are aware that a lender would never ask for an up­front pay­ment – this is the modus operandi of many loan scams.

We sent the in­for­ma­tion to the Na­tional Credit Reg­u­la­tor, which con­firmed that Udu Loans ap­peared to be op­er­at­ing a lend­ing scam as its reg­is­tra­tion num­ber be­longed to another credit provider that is reg­is­tered with the reg­u­la­tor.

Le­siba Mashaba, com­pany sec­re­tary at the reg­u­la­tor, says: “We con­tacted the real credit provider and it has no knowl­edge of this en­tity. In the mean­time, we are in­ves­ti­gat­ing fur­ther and will as­sess what en­force­ment ac­tion will be un­der­taken to deal with this is­sue.”

This is a good re­minder to all of our readers not to pay money up­front to lenders. You should only be pay­ing instalments after you re­ceive the loan.

You can also check the reg­is­tra­tion num­ber of the lender by go­ing to – un­der de­part­ments, click on Fais and then click the searches tab.

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