In Breach of the NCA
After investigating 21 lenders based in Cape Town and surrounding areas, 5 loan sharks were arrested last week for violating the National Credit Act (NCA).
With the aid of the police, the National Credit Regulator (NCR) raided the premises of suspected loan sharks in Woodstock, Wynberg, Goodwood, Bellville, Strand, Robertson, Paarl, Wellington and Stellenbosch.
5 bank cards, 7 ID books and 71 pension cards were seized from the suspects. Loan sharks illegally use these documents and cards as surety to ensure their clients repay their loans. Not only is this in contravention of the NCA, but it is also a criminal offense.
These raids and arrests are just the tip of the countrywide crackdown on lenders operating beyond the boundaries of the NCA, which the NCR will resolutely pursue going forward.
The NCR will arrest and shut down all predatory creditors and unscrupulous lenders, manipulating the poor and vulnerable out of their hard-earned money.
They’ve Only Just Begun
Those credit providers who hold the identity documents, bank cards, social security cards and pension cards of low-income, financially illiterate consumers to ransom will be prosecuted to the full extent of the law. Accordingly, many more raids and arrests are definitely on the cards.
Go NCR! We’re all for consumer justice here at Help with Debt!