Cape Town The National Consumer Tribunal slapped Eagle Cash Loans, a strand-based credit provider, with a R250 000 fine and cancelled its registration as a result of reckless syndicate bank personal loan interest practices, the National Credit Regulator (NCR) said in a statement on Monday.
An investigation by the body revealed that Eagle Cash Loans lent recklessly to consumers and retained consumers bank cards and identity documents, which are in contravention of the National Credit Act. We urge 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 Act, Peters added. The NCR reminded credit providers that the overcharging of interest andor fees under a credit agreement is now a criminal offence. Criminal charges will be laid by the NCR against credit providers overcharging consumers, Peters said.
The National Credit Regulator resorts under the Department of Trade and Industry and is responsible for regulation of the South African credit industry and making sure credit providers comply with the National Credit Act.
In November last year, amendments were introduced to the National Credit Act which means among other things that any institution that lends money needs to be registered as a credit provider.
The drawback is you have to wait one to two business days for your funds to deposit. If you get a loan from a physical location, you get your money immediately. Alternatives to Payday Loans. You often hear that payday loans are something people turn to when theres an emergency expense like a car accident or medical emergency.
Thats not necessarily true. In a study on payday loans, the Pew Charitable Trust found that 69 percent are used to pay for recurring expenses like utilities, food or other bills. The average borrower uses eight loans a year, which last about 18 days each.
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