Retail supermarket Shoprite has been found guilty of reckless lending by the National Consumer Tribunal after an investigation by the National Credit Regulator.
The regulator found that Shoprite entered into agreements with consumers without doing any objective assessment to determine their ability to afford loans.
Manager of investigation and enforcement at the National Credit Regulator, Jacqueline Peters, says the regulator started its investigation in 2015 after it was notified that the retailer might be giving credit to consumers without the proper assessment.
This was confirmed by the judge presiding on the matter, says Peters.
It was revealed through the NCR investigation that credit was extended to consumers and the assessment conducted was not fair and objective and ultimately could've extended recklessly to consumers.— Jacqueline Peters, National Credit Regulator manager of investigation and enforcement
Consumers can lodge complaints at the National Credit Regulator if they believe credit was extended recklessly.— Jacqueline Peters, National Credit Regulator manager of investigation and enforcement
A fine of R1 million was imposed against Shoprite. They were also ordered to appoint a debt counsellor at its own costs to assess if its consumers were overly indebted.
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This article first appeared on 702 : Shoprite fined R1 million for reckless lending