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
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
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