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Cape Town - Capitec Bank Holdings Limited [JSE:CPI] is still not off the hook by the National Credit Regulator (NCR) over concerns of allegedly breaching credit laws.
The NCR is appealing a judgment by the National Consumer Tribunal (NCT) against Capitec relating to contraventions of the National Credit Act (NCA) , the bank announced in a SENS report on Friday.
Capitec said in May that the NCT dismissed the application, however the NCR is appealing the matter.
"Capitec Bank has now received a notice of appeal lodged by the NCR against the NCT judgment."
The bank, which makes high-interest loans to low-income consumers, did not want to speculate on any financial implications that the matter may entail.
"It remains impracticable to estimate the financial effect of any possible outcome," it said.
The NCT was asked in May last year by the NCR to investigate Capitec Bank for allegedly contravening the NCA 34 of 2005, including in relation to initiation fees charged on one product.
Capitec said last year that it probed the allegations and believed it would be satisfactorily resolved.
The bank, which has 5.4 million clients, also launched a home loan offering in answer to market demand and joined the family of banks to have mobile applications.
African Investment Bank [JSE:ABL] was the first bank to be referred by the NCR to the NCT for investigation.
It agreed to a fine of R20m, which is substantially lower than the R300m called for, in terms of a settlement reached with the NCR for reckless lending.
- Fin24
The NCR is appealing a judgment by the National Consumer Tribunal (NCT) against Capitec relating to contraventions of the National Credit Act (NCA) , the bank announced in a SENS report on Friday.
Capitec said in May that the NCT dismissed the application, however the NCR is appealing the matter.
"Capitec Bank has now received a notice of appeal lodged by the NCR against the NCT judgment."
The bank, which makes high-interest loans to low-income consumers, did not want to speculate on any financial implications that the matter may entail.
"It remains impracticable to estimate the financial effect of any possible outcome," it said.
The NCT was asked in May last year by the NCR to investigate Capitec Bank for allegedly contravening the NCA 34 of 2005, including in relation to initiation fees charged on one product.
Capitec said last year that it probed the allegations and believed it would be satisfactorily resolved.
The bank, which has 5.4 million clients, also launched a home loan offering in answer to market demand and joined the family of banks to have mobile applications.
African Investment Bank [JSE:ABL] was the first bank to be referred by the NCR to the NCT for investigation.
It agreed to a fine of R20m, which is substantially lower than the R300m called for, in terms of a settlement reached with the NCR for reckless lending.
- Fin24
