Eagle Cash Loans contravenes Credit Act

Monday, February 27, 2017

Pretoria - An investigation by the National Credit Regulator (NCR) has led to the cancellation of the registration of Eagle Cash Loans for contravening the National Credit Act.

“The National Consumer Tribunal (NCT) handed down a judgment imposing an administrative fine of R250 000 and cancelling the registration of Eagle Cash Loans, a credit provider operating at 22 Abegglen Street, Strand, Western Cape,” said the credit regulator on Monday.

The cancellation stems from an investigation by the NCR into the lending activities of the credit provider which revealed, among other things, that Eagle Cash Loans lent recklessly to consumers and retained consumers’ bank cards and identity documents in contravention of the National Credit Act (NCA).

“The NCR views the contraventions of the NCA committed by the credit provider in a serious light and urges credit providers to step up their efforts to comply with the NCA”, Manager of the Investigations and Enforcement at the NCR Jacqueline Peters said.

The NCR called on consumers to ensure that they only apply for credit from credit providers who are registered with the NCR.

Credit agreements concluded by unregistered credit providers are unlawful and in contravention of the NCA.

“Credit providers are reminded that the overcharging of interest and/or fees under a credit agreement is now a criminal offence. Criminal charges will be laid by the NCR against credit providers overcharging consumers,” said Peters.

The National Credit Regulator, which is an agency of the Department of Trade and Industry, was established as the regulator under the National Credit Act and is responsible for the regulation of the South African credit industry. – SAnews.gov.za

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