National Credit Regulator intensifies its fight against lenders flouting the NationalCredit Act in the Northern Cape

In a bid to stem the abuse of consumers by lenders and ensure compliance with the National Credit Act (NCA), the National Credit Regulator (NCR) and the South African Police Service (SAPS) conducted joint onsite investigations, in an initiative named "Operation Siyanda".

The NCR partnered with the SAPS and the Directorate of Priority Crimes and Investigation in Upington, Keimos, Kakamas and Groblershoop this week investigating 32 lenders. This led to the arrest of 13 individuals who contravened the NCA.

"The focus of this kind of operation is primarily on credit providers who are unlawfully garnishing, retaining pension cards, bank cards, identity documents and personal identity numbers (PIN) of their clients as surety," said Nomsa Motshegare, CEO of the NCR. "This is a contravention of the National Credit Act and it is a criminal offence", she added.

Motshegare stated that this is part of the NCR's ongoing strategy to ensure that all credit providers, no matter where they conduct business, comply with the provisions of the National Credit Act. "The exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated," she added.

During the operation, 13 people were arrested and as a result, 11 criminal cases were opened. In addition, the suspects were found to be in possession of 5 453 pension cards, 130 ID books and 1 720 bankcards.

Motshegare complimented the SAPS and the Directorate of Priority Crimes and Investigation from Upington, Keimos, Kakamas and Groblershoop for their excellent assistance to the NCR during this operation, and for their willingness to assist consumers.

"This operation was definitely not the last of its kind. Such operations are conducted nationally in different parts of the country. Credit providers should be warned that the NCR will not condone any contraventions by credit providers", concluded Motshegare.

Notes to editors

The National Credit Regulator has already conducted similar operations in Thohoyandou, Venda, Eastern Cape, KwaZulu-Natal, Western Cape, North West and the Limpopo Provinces. Below are the findings:

• 2845 bank cards
• 1238 Pension cards
• 551 ID's
• 53 criminal charges opened and arrests in the towns visited.
• 63 people were arrested.
• The six criminal cases opened with the SA Police in Port Elizabeth have been finalized in court and the results are set out below:
  • In the first matter, the accused pleaded guilty to 5 counts of contravening Section 133 of the NCA and was sentenced to a fine of R 5 000 or 12 months imprisonment wholly suspended for 5 years on certain conditions.
  • In the second matter, the accused pleaded guilty to 11 counts of contravening Section 133 of the NCA and was sentenced to a fine of R 8 000 or 12 months imprisonment wholly suspended for 5 years on certain conditions.
  • In the third matter, the accused pleaded guilty to 14 counts of contravening Section 133 of the NCA and was sentenced to a fine of R 10 000 or 12 months imprisonment wholly suspended for 5 years on certain conditions.
  • In the fourth matter, the accused pleaded guilty to 9 counts of contravening section 133 of the NCA and was sentenced to a fine of R 8 000 or 24 months imprisonment wholly suspended for 5 years on certain conditions.
  • In the fifth matter, the accused pleaded guilty to 38 counts of contravening section 133 of the NCA and was sentenced on each count (38 of them) to a fine of R 2 000 or 6 months imprisonment wholly suspended for 5 years on certain conditions.
  • In the sixth matter, the accused pleaded guilty to 3 counts of contravening section 133 of the NCA and was sentenced to a fine of R 8 000 or 12 months imprisonment wholly suspended for 5 years on certain conditions.

Statement issued by Lebogang Selibi, National Credit Regulator, June 11 2013

Click here to sign up to receive our free daily headline email newsletter