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Cape Town - Capitec Bank Holdings [JSE:CPI] announced in a SENS report on Wednesday that the National Consumer Tribunal (NCT) is set to hear the case of alleged breach of credit laws against it.
"The matter will be heard by the NCT during March 2014," it said in the trading statement.
The NCT was asked in May last year by the National Credit Regulator (NCR) to investigate Capitec Bank.
The NCR alleged that Capitec contravened the National Credit Act 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 re-iterated that it is impracticable to estimate the financial implications. "As reported previously, it is not practicable to estimate the financial effect of any possible outflow."
The bank, which makes high-interest loans to low-income consumers, surpassed the 5 million client mark in January.
It is expected to release it's financial results for the year ended February 28 2014 towards the end of March.
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 matter will be heard by the NCT during March 2014," it said in the trading statement.
The NCT was asked in May last year by the National Credit Regulator (NCR) to investigate Capitec Bank.
The NCR alleged that Capitec contravened the National Credit Act 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 re-iterated that it is impracticable to estimate the financial implications. "As reported previously, it is not practicable to estimate the financial effect of any possible outflow."
The bank, which makes high-interest loans to low-income consumers, surpassed the 5 million client mark in January.
It is expected to release it's financial results for the year ended February 28 2014 towards the end of March.
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
