THURSDAY, 23 MAY 2024 IMMEDIATE RELEASE
Johannesburg – In a bold move, the National Credit Regulator (NCR) is intensifying its efforts to combat the unlawful possession of consumer instruments by credit providers, in flagrant violation of the National Credit Act. Under Section 90(2)(l) of the National Credit Act, credit providers are expressly prohibited from coercing consumers into surrendering their personal instruments as security for credit applications.
These instruments, including identity documents, credit or debit cards, bank account details, PINs, SASSA Cards, EasyPay cards, clothing account cards, and similar documents or devices, are fundamental to consumers’ financial autonomy and must not be exploited for any purpose related to credit agreements. Moreover, Sections 133(1)(a) and 133(2) of the National Credit Act unequivocally forbid credit providers from utilizing any of the aforementioned documents, instruments, or provisions in the enforcement or collection of credit agreements.
“The National Credit Act safeguards the rights of consumers and upholds the integrity of the credit industry,” stated Ms Lynette De Beer, the Agency’s Acting Chief Executive Officer. “Any contravention of these provisions will be met with decisive enforcement action.” The NCR’s Investigation and Enforcement department remains vigilant in addressing complaints and taking legal action against credit providers found in possession of prohibited consumer instruments.
In collaboration with the Directorate for Priority Crimes – HAWKS, the NCR is currently conducting a Raid Operation in the Province of Mpumalanga from May 20th to May 24th, 2024, targeting offenders engaging in illicit practices.
Failure to comply with the provisions of the NCA prohibiting the retention of consumers’ instruments constitutes a criminal offence, undermining consumers’ rights and potentially impeding their access to essential services such as banking, benefits, and voting. Upon discovering any violations, the NCR will promptly register criminal cases with the South African Police Services, ensuring the apprehension of culpable parties and initiating legal proceedings under Section 133 read with Section 90(2)(l) of the National Credit Act.
Furthermore, the NCR is committed to pursuing enforcement measures against offending credit providers, including referrals to the National Consumer Tribunal. The Tribunal may issue interdicts, order refunds to affected consumers, revoke registrations, and impose punitive fines as necessary.
“For swift action by the NCR, Consumers are encouraged to report any instances of unlawful conduct by credit”, concludes Ms De Beer
ENDS
Issued by: NCR – Corporate Communications
For media inquiries, please contact:
Winnie Rabathata
National Credit Regulator (NCR)
Tel: (011) 554 2600 | Cellphone: 064 752 3923 Email: wrabathata@ncr.org.zaWeb: www.ncr.org.za
Simphiwe Mthembu
Head of Media Relations
National Credit Regulator (NCR)
Tel: (011) 554 2600 | Cellphone: 072 634 1077 Email: tmthembu@ncr.org.za | Web: www.ncr.org.za
ABOUT THE NATIONAL CREDIT REGULATOR
The National Credit Regulator is tasked with regulating the South African credit industry, ensuring fair practices, promoting responsible lending, and protecting consumer rights under the National Credit Act.