ENFORCEMENT by the National Credit Regular (NCR) in the first six months of the 2015 financial year resulted in 44 cases against credit providers being referred to the National Consumer Tribunal with millions being refunded to consumers, NCR CEO Nomsa Motshegare said Tuesday.
The cases included those involving the imposition of garnishee orders on the salaries of employees to repay debts. In total, R67m was refunded to consumers in overcharged insurance products during the period to end-September, Ms Motshegare said in a briefing to Parliament’s trade and industry portfolio committee on the activities of the regulator.
Large retailers, such as Edgars and Lewis Stores, are amongst those that have been investigated by the NCR.
Fines amounting to R4.4m were paid by nine credit providers following orders made by the tribunal, and ID books, social grant and bank cards held illegally by credit providers were seized.
"Several credit providers were arrested in raids conducted in the Western Cape," Ms Motshegare said.
Investigations focused on the sale of retrenchment and occupational disability insurance to pensioners and consumers receiving government social grants who had no need of the insurance; overcharging of credit life insurance; reckless lending; credit providers obtaining default judgments in magisterial districts different to the areas where the debtors lived so they were not able to defend themselves; overcharging of fees and misleading advertisements.
Credit. Picture: ISTOCK
ENFORCEMENT by the National Credit Regular (NCR) in the first six months of the 2015 financial year resulted in 44 cases against credit providers being referred to the National Consumer Tribunal with millions being refunded to consumers, NCR CEO Nomsa Motshegare said Tuesday.
The cases included those involving the imposition of garnishee orders on the salaries of employees to repay debts. In total, R67m was refunded to consumers in overcharged insurance products during the period to end-September, Ms Motshegare said in a briefing to Parliament’s trade and industry portfolio committee on the activities of the regulator.
Large retailers, such as Edgars and Lewis Stores, are amongst those that have been investigated by the NCR.
Fines amounting to R4.4m were paid by nine credit providers following orders made by the tribunal, and ID books, social grant and bank cards held illegally by credit providers were seized.
"Several credit providers were arrested in raids conducted in the Western Cape," Ms Motshegare said.
Investigations focused on the sale of retrenchment and occupational disability insurance to pensioners and consumers receiving government social grants who had no need of the insurance; overcharging of credit life insurance; reckless lending; credit providers obtaining default judgments in magisterial districts different to the areas where the debtors lived so they were not able to defend themselves; overcharging of fees and misleading advertisements.
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