'CPS lures grant recipients into buying insurance (and taking out microloans)'

The shareholders of Cash Paymaster Services, Net1 UEPS, is using the database of grant recipients to cross-sell microloans, insurance and other additional services through a network of subsidiary companies.

So said Sygnia Asset Management CEO Magda Wierzycka in a Daily Maverick article on Tuesday.

Payments for these services, said Wierzycka, are automatically deducted from the grants.

Many of the people who receive grants are lured, possibly unknowingly, into purchasing these services via SMS messages.

Magda Wierzycka, Sygnia Asset Management

The largest shareholder in Net1, according to Thomson Reuters, is Allan Gray.

CapeTalk’s John Maytham interviewed Wierzycka.

Listen to the interview in the audio below (and/or scroll down for quotes from it).

Microloans to the poorest of the poor is very much a predatory practice… Interest rates are astronomical…

Magda Wierzycka, Sygnia Asset Management

Everyone should have freedom to borrow as much as they can afford to repay. But people should make a conscious decision to take out a loan, and they should be able to compare prices.

Magda Wierzycka, Sygnia Asset Management

The person who distribute grants shouldn’t be allowed to use grant recipients' personal information to market services to them… It’s highly exploitative.

Magda Wierzycka, Sygnia Asset Management

This article first appeared on 702 : 'CPS lures grant recipients into buying insurance (and taking out microloans)'


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