Credit provider was over­charg­ing

Weekend Argus (Saturday Edition) - - PERSONALFINANCE -

The Na­tional Credit Reg­u­la­tor (NCR) has cracked down on a credit provider that has been over­charg­ing con­sumers for credit insurance.

This week, the reg­u­la­tor served a com­pli­ance no­tice on SA Taxi Se­cu­ri­ti­sa­tion for breach of the Na­tional Credit Act.

A com­pli­ance no­tice is an in­struc­tion to com­ply with the Act.

An in­ves­ti­ga­tion by the NCR re­vealed that SA Taxi paid an­nual credit insurance premi­ums to insurance com­pa­nies on be­half of con­sumers and re­ceived dis­counts on th­ese premi­ums, but it nei­ther dis­closed this to con­sumers nor passed on the dis­count to them. This re­sulted in con­sumers over­pay­ing SA Taxi.

SA Taxi has been in­structed to re­fund con­sumers all premi­ums paid in ex­cess of what the com­pany paid over to the in­sur­ers on the con­sumers’ be­half.

“Dis­counts should be dis­closed and passed on to con­sumers,” Nomsa Mot­she­gare, chief ex­ec­u­tive of the NCR, says. – Staff reporter

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