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National Credit Regulator issues a Compliance Notice to the entity operating the R699 vehicle scheme Print E-mail
Tuesday, 15 July 2014

In a bid to combat predatory lending practices, including credit marketing practices, the National Credit Regulator (NCR) has issued a Compliance Notice against Satinsky 128 (Pty) Ltd, an entity involved in the so called “R699 vehicle scheme”.

The National Credit Act (NCA) regulates advertisements for credit and stipulates the minimum content that must be disclosed when credit is advertised.
 
The advertisement by Satinsky discloses the monthly instalment of R699 only. The NCA requires that if an advertisement discloses the monthly instalment, it must also disclose the instalment amount, number of instalments, total amount of all instalments (including interest, fees, and compulsory insurance), interest rate and residual or final amount payable.
 
The advertisement of Satinsky appearing on the website also contains the statement that consumers will pay a reasonable interest rate without disclosing the cost of credit.
 
The notice requires Satinsky to submit an audit report to the NCR confirming that its advertisements for credit comply with the NCA and that it has implemented systems and procedures to prevent the issuing and publication of non-compliant advertisements.
 
“The audit report will provide assurance that all advertisements appearing on vehicles are in compliance with the provisions of the NCA,” says Nomsa Motshegare, Chief Executive Officer of the NCR.
 
“Satinsky has an opportunity to bring its credit marketing practices in line with the provisions of the NCA, however, should it fail to do so, the NCR will approach the National Consumer Tribunal for stringent orders which may include an administrative fine,” says Motshegare.
 
The NCR also wishes to announce that it is investigating the Satinsky’s R699 vehicle scheme for other possible contraventions of the NCA.
 
“The purpose of the investigation is to establish if vehicle owners were granted credit in accordance with the NCA. This is a separate issue from the credit advertisements appearing on the vehicles,” concludes Motshegare.

(Source - NCR Media Release)
 

 

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