Capitec readies for legal battle over reckless lending charges

Stellenbosch - Capitec Bank Holdings [JSE:CPI], South Africa’s biggest provider of unsecured loans, said it has lodged its opposition to reckless-lending charges filed by Summit Financial Partners and will submit responding court documents early next month.

“We’re not payday lenders,” Chief Executive Officer Gerrie Fourie said in an interview in Stellenbosch, near Cape Town. “We’re confident we can win against Summit, but we’re worried about reputational damage.”

Earlier this month Summit, which helps consumers work their way out of debt, said in court papers filed in both Cape Town’s High Court and the Magistrates Court in Stellenbosch that Capitec breached the National Credit Act. Summit focused on Capitec’s so-called multi loans and its alleged refusal to supply paperwork when requested to do so by clients.