Credit provider was overcharging

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