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Akhudle fined R1M after NCR finds it breached credit act

By in Crime, Law, Legal Affairs on March 17, 2016

The National Consumer Tribunal (NCT) handed down a judgement fining credit provider Akudle Kutshiyele (Akudle) which operated in Nelspruit, Mpumalanga a R 1 million and finding them guilty of prohibited conduct. This followed an investigation by the National Credit Regulator (NCR) into the activities of Akhudle which revealed contraventions of the National Credit Act (NCA).

The main contraventions were:

  • Extending credit while not being registered in that Akudle continued to conduct business of a credit provider after its registration had lapsed due to non- payment of annual registration fees;
  • Failure to conduct affordability assessments when granting credit;
  • Failure to provide consumers with copies of pre-agreement statements and quotations;
  • Retaining consumers’ bank cards and identity documents for the purpose of collecting or enforcing the credit agreements.

“Credit providers are reminded that it is their duty to ensure that their registration fees are paid and up to date at all times. Continuing to trade after the lapse of their registration due to non-payment of registration fees is a serious contravention of the NCA. The actions of credit providers who do not fully comply with the NCA will not be tolerated and the necessary enforcement action will be taken”, concluded Jacqueline Boucher, Manager of the NCR’s Investigations and Enforcement Department.