Capitec not off the hook with regulator

The NCR has alleged that Capitec breached credit laws. Last time it lost its case but it has appealed the decision.

By Angelique Ruzicka, editor, Justmoney

The National Credit Regulator is hounding Capitec again. This time it is appealing a decision made by the National Consumer Tribunal which found in favour of Capitec after it was alleged by the NCR that the bank breached credit laws.

The bank announced in a Sens report last week Friday: “On 27 May 2014 Capitec advised that the National Consumer Tribunal had dismissed the NCR’s application against Capitec Bank (“the NCT judgement”). Capitec Bank has now received a notice of appeal lodged by the NCR against the NCT judgement.”

It added that it couldn’t estimate the financial effect of any possible outcome but felt it would win its case again, saying: “Capitec is still of the view that the matter will be satisfactorily resolved through due process.”

Capitec has been accused of breaching credit laws with one of its products. The bank has refused to comment on which product this has involved.

This year, Capitec launched a home loan offering in conjunction with SA Home Loans as well as mobile applications for its clients.

The NCR has also referred African Bank to the NCT for investigation. The bank was fined R20 million for reckless lending, which was substantially lower than the R300 million called for.

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Capitec not off the hook with regulator

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