Akudle Kutshiyele fined R1m for NCA contravention

Following an investigation by the National Credit Regulator (NCR) a credit provider, Akudle Kutshiyele, was fined R1 million, on grounds of prohibited conduct.
 
The Nelspruit, Mpumalanga operation was found to be in contravention 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 and failure to provide consumers with copies of pre-agreement statements and quotation,” stated the NCR.
 
They were also retaining consumers’ bank cards and identity documents for the purpose of collecting or enforcing credit agreements.
 
The NCR reminded credit providers 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 NCR remarked.
 
“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.