On 27 July 2017, the National Consumer Tribunal (NCT) heard the case between the National Credit Regulator (NCR) and Hua Xiang Cash Loans CC (Hua Xiang), a registered credit provider operating in Makhado and Malelane with the registration number NCRCP3505.The NCR argued that Hua Xiang was in contravention of the provisions of the National Credit Act, 34 of 2005, as amended (the Act). The NCT made an order whereby the registration of Hua Xiang was cancelled, with immediate effect. The remainder of the prayers sought by the NCR were reserved for the NCT to deliver a written judgment in due course.
The NCT found that the nature of the contraventions were so severe and of a serious nature that it warranted the immediate cancellation of the registration of Hua Xiang. These contraventions included:
- Failure to conduct proper affordability assessments;
- Failure to provide consumers with pre-agreement statements and quotations;
- Failure to furnish consumers with credit agreements in the prescribed form;
- The charging of an interest rate in excess of the imposed limit; and
- The use of prohibited collection and enforcement actions.
Consumers are warned not enter into loans with credit providers that use unlawful collection methods such as the retention of bank and SASSA cards, as well as the retention of identity documents. Further, consumers are urged to only enter into loans with registered credit providers.
The NCR will continue to conduct industry-wide investigations on credit providers who use
