Com­pany canned for ‘reck­less’ lend­ing

Weekend Argus (Saturday Edition) - - BUSINESS -

THE reg­is­tra­tion of a credit provider op­er­at­ing at Marikana, North West, has been can­celled for reck­less lend­ing and con­tra­ven­ing the Na­tional Credit Act, the Na­tional Credit Reg­u­la­tor said yes­ter­day.

The Na­tional Con­sumer Tri­bunal can­celled the reg­is­tra­tion of Ru­fus Al­fonso Fi­nan­cial Con­sul­tants af­ter raids were con­ducted by the NCR late last year into credit providers oper- at­ing at Marikana, the NCR said.

The raids showed that Ru­fus Al­fonso Fi­nan­cial Con­sul­tants granted credit to con­sumers reck­lessly, charged con­sumers in­ter­est in ex­cess of the max­i­mum pre­scribed rate, and re­tained con­sumers’ bank cards, iden­tity doc­u­ments and PIN codes.

“The tri­bunal or­dered the can­cel­la­tion of the credit provider with im­me­di­ate ef­fect, and that the credit provider re­fund con­sumers all in­ter­est monies charged in ex­cess of the pre­scribed max­i­mum rate,” the NCR added.

It had also re­quested the tri­bunal im­pose an ad­min­is­tra­tive fine, though the tri­bunal or­dered the NCR to re­turn to it in the near fu­ture to make sub­mis­sions on the fine.

“Con­sumers are ad­vised that Ru­fus Al­fonso Fi­nan­cial Con­sul­tants is no longer al­lowed to op­er­ate as a credit provider and to of­fer credit,” the NCR said.

“The NCR views reck­less lend­ing in a se­ri­ous light given its neg­a­tive con­se­quences for con­sumers and re­spon­si­ble credit providers.”

The reg­u­la­tor’s chief ex­ec­u­tive, Nomsa Mot­she­gare, urged all credit providers to con­duct proper af­ford­abil­ity as­sess­ments of credit ap­pli­cants. – Sapa

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