• Water shortage

    Climate-related consequences are raising food prices, joblessness, crime, and instability.

  • High food prices

    Mandi Smallhorne looks beyond the weather as the cause for rising food costs.

  • Sars Wars returns

    Allan Greenblo looks at the leadership concerns around the 'Twin Peaks' regulatory model.

All data is delayed
Loading...
See More

African Bank to challenge R300m fine

Feb 13 2013 13:36

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

NEXT ON FIN24X

 
 
 

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
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

SMALL BUSINESS

Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.
 

Money Clinic

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

Voting Booth

The regulation of WhatsApp and other OTTs is:

Previous results · Suggest a vote

Loading...