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 fsb.co.za – under departments, click on Fais and then click the searches tab.