• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

Loading...
See More

African Bank to challenge R300m fine

Feb 13 2013 13:36
Gavel

(Picture: Shutterstock)

Related Articles

African Bank puts brakes on loans

Abil banks 18% profit, ups dividend

African Bank earnings seen higher

Abil expects sales to moderate

Abil earnings come in higher

Abil eyes international bond issue

 

Johannesburg - SA's largest unsecured lender, African Bank Investments [JSE:ABL] has threatened to take the National Credit Regulator to court should the National Consumer Tribunal agree to the regulator's proposal of a R300m fine for fraudulent lending.

Business Day reported that African Bank is contesting a fine related to the manipulation of the bank's "affordability calculations" which affected "397 customers and loans to the capital value of R15.5m".

After an internal investigation three agents were dismissed for fraud when it was discovered that they colluded with customers and made illegal payments to agents in return for granting the loans, the report said.

The National Credit Regulator recommended that the National Consumer Tribunal impose a R300m fine, which is possibly the largest proposed sanction in the credit regulator's history, Business Day said.

African Bank CEO Leon Kirkinis told the publication there were complex syndicates that "fraudulently designed pay slips, bank statements and identity documents to manipulate affordability calculations".

He said the bank was not in the business of lending to "people who can't afford".

African Bank has about 40% of the total outstanding unsecured credit granted in the country.

African Bank shares were up 1.60% to R31.04 in midday Wednesday trade.  

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

african bank investments

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
3 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Top 10 richest musicians of all time

Check out the gallery to find out who they are!

 
 

Luxury living

10 of the most expensive things that will leave your jaw hanging!
Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...