News24

'Blitzkrieg' catches credit providers

2012-03-27 13:55

Johannesburg - Fifteen Northern Cape credit providers have been arrested for allegedly bullying people and using illegal collection tactics, the National Credit Regulator (NCR) said on Tuesday.

The arrests were made in a joint two-day operation between the regulator and the police, NCR investigations acting manager Zweli Zakwe said in a statement.

"The operation, dubbed 'Project Blitzkrieg', primarily focused on credit providers [both registered and unregistered] who are unlawfully retaining pension cards, bank cards, identity documents and personal identity numbers of their clients as surety," he said.

"This is a contravention of the National Credit Act."

The operation took place in De Aar, Petrusville, Noupoort and Colesberg.

Police searched property belonging to registered credit providers and unregistered lenders, known as "skoppers".

Zakwe said the operation was part of the NCR’s strategy to ensure all credit providers still complied with the provisions of the act.

"The exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated," he said.

Police recovered 600 pension cards, 114 identity documents and 620 bank cards at the credit providers' properties.

Zakwe said a similar operation was held in Port Elizabeth in October last year, and three skoppers were prosecuted in March, he said.

"Such operations will be extended to other parts of the country and credit providers are warned that the NCR will not condone these practices."

Comments
  • Shirley - 2012-03-27 14:28

    Good! These cash loans are famous for this behaviour!

  • Des Bothma - 2012-03-27 14:32

    Testing

  • Israel - 2012-03-27 14:42

    Russels furniture shop must also be investigated, their tactics are unlawful. If you fail to pay your account they will threaten you that they will repossess your furniture and they dont care evn though you explain to them that u are unemployed !!!!!!!!!!!!!!! I WILL NEVER BUY ANYTHING FROM THEM......

      nieljoubert - 2012-03-27 15:07

      Why buy furniture on credit if you don't have money to pay it off?

      Freddie - 2012-03-27 15:09

      Nothing unlawful in repossession if you cannot maintain payments.

      logical007 - 2012-03-27 15:11

      AHHH Yes Muzi... Obviously!!! If you take a loan to buy furniture you must pay the loan back with interest... Nothing for free! Thats why you should only buy what you can pay cash for immediately; especially for items like furniture and tvs etc. Interest is just to high otherwise. Pay your bond off as quick as possible. Do not use budget facility on your credit card - better still keep credit card in a positive balance.So many people want to drive in AWESOME CARS for image and get into debt that they can't afford and then rent homes??? Cars are liabilities, houses are ASSETS!

  • Sharon - 2012-03-27 15:07

    When are they hitting the banks???

      Freddie - 2012-03-27 15:15

      Sharon, so exactly which banks take your ID book, bank cards and pension cards? The article relates to unlawful credit practices, not mainstream banking which complies with the NCA.

  • Israel - 2012-03-27 15:17

    Response to Nieljoubert, how can you proceed paying ur instalments while u are unemployed. I meant when u hv been retrenched or lost ur job!!!!!!!!!

      Skuiter - 2012-03-27 16:00

      You are a idiot. When you bought your furniture, you had the option of taking extra insurance. Let me guess, you didnt. Too bad, so sad. Pay up or sit on the floor.

      Deon - 2012-03-27 16:30

      The moral of the story: don't buy on credit. Rather save money and buy in cash in future.

  • Shaun - 2012-03-27 17:24

    Job well done NCR! Slowly the South African government is cracking down on crime! - Cheers

  • pages:
  • 1