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National Credit Regulator tackles unscrupulous loan sharks

by | Jun 19, 2013

The National Credit Regulator (NCR) is working with the South African Police Service (SAPS) to target “loan sharks” – credit providers who are using abusive methods to collect outstanding debts.

handcuffs‘Operation Siyanda’ which was held in the Northern Cape recently is the latest in a round of operations conducted by  SAPS which have included Thohoyandou, Venda, Eastern Cape, KwaZulu-Natal, Western Cape, North West and the Limpopo Provinces. As a result of these operations, six court cases have already been finalised with fines of up to R10 000 or twelve month imprisonment suspended for five years.

“The focus of this kind of operation is primarily on credit providers who are unlawfully garnishing, retaining pension cards, bank cards, identity documents and personal identity numbers (PIN) of their clients as surety,” said Nomsa Motshegare, CEO of the NCR. “This is a contravention of the National Credit Act (NCA)and it is a criminal offence.”

The NCR partnered with the SAPS and the Directorate of Priority Crimes and Investigation in Upington, Keimos, Kakamas and Groblershoop, investigating 32 lenders. This led to the arrest of 13 individuals who contravened the NCA.

During the operation, 13 people were arrested and as a result 11 criminal cases were opened. In addition, the suspects were found to be in possession of 5 453 pension cards, 130 ID books and 1 720 bank cards.

“This operation was definitely not the last of its kind. Such operations are conducted nationally in different parts of the country. Credit providers should be warned that the NCR will not condone any contraventions by credit providers”, says Motshegare.

If you are aware of credit providers using illegal means to collect outstanding debts such as withholding bank cards you should report them to the National Credit Regulator:

Telephone: 011 554 2600 or 0860 627 627
Email: complaints@ncr.org.za
For complaints regarding debt counseling: dccomplaints@ncr.org.za

31 Comments

  1. Good afternoon, Please where can i report illegal loan sharks who is also pressuring people into payments – police and them are friends.

    Reply
  2. Hi i have a problem with a money lender. i borrowed R7000 and i have paid back R13 500. He insists on another R7000 what can possibly be done?

    Reply
    • Unfortunately not much – it is an agreement between two people. They usually charge 50% a month – it is basically the worst thing to do! Even though it is illegal NCR is unlikely to get involved unless he is withholding ID cards or bank cards.

      Reply
  3. Goodday I am a mother who has a 18 yr old boy. In our community we have a huge problem with these loan sharks as they give young kids money so they can buy drugs and in return they demand valuables like cellphones laptops any materials which are resallable. This is a huge problem where im from and these kids keep stealing from their homes to fund this habitual circle. Is there any way you can assist or advice. Please these are young boys who are caught up in this. Its ruining their lives as they resort to also distributing these drugs to pay the debt and get their next fix.

    Reply
    • That is so awful!! To be honest I have found that the National Credit Regulator does not really get involved unless bank cards or ID’s are being withheld. I will ask them and see if they could look into this

      Reply
  4. i borrowed money from this other guy, he charged me 30% interest. i managed to pay him the initial amount which was R2000 and i am not sure if he is registered with the NCR. he is currently threatening me and i ca no longer pay him. how do i check if he is registered and is there law that prohibits him from wanting more money from me since i have paid the initial amount and he is not registered?

    Reply
    • If he is registered you can lodge a complaint against him. If he is not – this becomes an issue between the two of you

      Reply
  5. I borrowed R40 000 from a neighbour and unfortunately immediately my business closed down…he then went to loan sharks and they started stalking me, one day they forcefully took a Ford Ranger bakkie from me, then demanded R60 000. I paid the R60 000 rand but they still demand another R180 000 and refuse to give back the car. I currently not working and does not have source of income and the car is bank financed. I want to give back the car to the bank but it is with them. How do I report this, and where?

    Reply
    • It is a very simple case of theft. You lay a charge against them for stealing your car

      Reply
  6. I bought goods and borrowed money from a local spaza shop. He charges 30% on money loaned. I couldn’t pay him all the money and he insisted that I pay the entire amount. He threatened to hit me, so I went to the police, they said that he must draw up an agreement in order for me to pay him. At his shop he gave me a blank paper and said that I should write my id no and sign, which I did. He then added 30% interest, when I asked why he said he has to pay other customers that want to loan money from him. What do I do as I cant pay him anymore. Please help I am desperate.

    Reply
    • Unfortunately this is an agreement between two private people. Technically he is not allowed to lend you money so can’t take you to court, but it sounds like he will threaten you. Maybe ask a policeman to go with you and offer a repayment plan

      Reply
  7. My elder sister has lent money from a lady.. She haven’t been working for 2 years and is only getting her 2 sons social grant (sassa) this lady has been keeping 2 of her identity documents nd is now threatening that she will keep on doing it until my sister hands over the kids government sassa card to her…. What do we do.. The police went to the lady’s home and told my sister they can’t help.

    Reply
    • You need to inform the National Credit Regulator as per the article. Keeping ID cards is illegal and the NCR can investigate

      Reply
  8. There is a guy by the name of Themba “Bra Nicky” he is a taxi owner/mashonisa who is taking peoples IDs and wants 50% when people borrow money. One of my family members was pointed with a gun and they haven’t been assisted by the police as this guy eithee bribed the police.

    His contact details are 0827129801and he has 3 houses that he uses to hide peoples IDs two houses in Meadowlands Zone 10 and one in Skodpola.(Soweto)

    Could you please assist and help the poor as this guy is really beating people up and it hurts seeing old people being hit that way.

    Reply
  9. There is a guy by the name of Themba “Nicky” he is a taxi owner/mashonisa who is taking peoples IDs and wants 50% when people borrow money. One of my family members was pointed with a gun and they haven’t been assisted by the police as this guy either bribed the police.

    His contact details are 0827129801and he has 3 houses (including his mothers house) that he uses to hide peoples IDs two houses in Meadowlands and one in Skodpola.

    Could you please assist and help the poor as this guy is really beating people up and it hurts seeing old people being hit that way.

    Reply
    • I will send the details to the NCR but it is best if you lodge a complaint directly. They will keep your identity anonymous.

      Reply
      • I would love to report a mashonisa in the northwest zeerust she has more than 200 sassa cards and identity documents.she torments our community and we have tried to involve the police with no help at all

        Reply
        • you need to lodge a complaint with the NCR. They will ask for your details but will not share that with the mashonisa. If you drop me an email I will link you in with them

          Reply
  10. These loan sharks don’t call you guys or force you to borrow their MONEY.

    You take their numbers and call them for help because you’re black listed you cant be assisted at banks.
    Then when it’s paying time you come with stupid excuses you morons.

    Reply
    • It’s a fair comment to say this is people’s choice, but its also fair to say that lenders charging 50% interest a month are preying on desperate people.

      Reply
  11. Good day I am working with a guy lending money for people with high interest and he is not registered how do I report him without him knowing it was me?

    Reply
    • You can report him to the National Credit Regulator. They will require your details but they will not share it with the company/individual.

      Reply
    • I have just called NCR right now with the same problem of the people that I know that are lending money, not registered, their interests so unbelievable high and still have the never to threaten. I called the NCR as per the advertorial here and they say that they cant assist, so exactly who is suppose to be reported?

      Reply
      • Thank you for your feedback. I have sent a query to the NCR in this regard as they claim to be investigating loan shark activities

        Reply
        • they are not instead Gugu in complaints department told me that they do not handle that. dismissed me like that with no concern or alternative direction.

          Reply
  12. I have an issue with Lifestyle Legal LTD, they claim i applied for a loan which i never received or did and now they wanting to blacklist me and put judgement against me, i asked where they got my details and ID from and send me proof until this day no proof has been submitted to me. Just harrassing me to pay R1452.50 and my attorney suggested i get hold of you guy’s to see what you can do for me.

    Their details as follows:

    0860-022-141 the reference they gave me is: 9521013436055 their email addresses are: help@lifestylegal.co.za or recovery@lifestylelegal.co.za

    My attorney details are as follows: Don Bruwwer 083-458-1212 and he thinks this is all a scam as he has contacted them telling them he is representing me and to not harrass me and they still continue. Threatening to blacklist me and put me on ITC which i find unfair as i did not apply or receive any loan from them nor given my ID or any details that they cannot verify how they got those details.

    Reply
    • I recommend you report their actions to the National Credit Regulator – they will soon be able to see if they are running a scam. You have a lot of rights in this situation – if they wish to bring a judgement it has to go to court first where you can argue your position. If they put information on a credit bureau you can request for it to be removed. Sounds like they are just using scare tactics

      Reply
    • I borrowed money from the other girl. Full amount suppose to be R700 but I paid her R200 last month, now my balance is R500. I told her that I’m no longer working anymore my contract expired. Now she’s threatning me.

      What can I do to resolve this?

      Reply
    • Hi I borrowed my from a loan shark. He held a vehicle which is not on my name. I have paid him two months and Still have a balance outstanding. He refuses to talk and is threatened to assualt me. And says he his taking the van please help

      Reply
      • Unfortunately this is outside of the financial legal environment. The only solution here is that the person whose van it is lays a charge of theft against the loan shark

        Reply

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Maya Fisher-French author of Money Questions Answered

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