National Credit Regulator refers uBank Ltd to the National Consumer Tribunal for breach of the National Credit Act
The National Credit Regulator (NCR) has announced that it has referred uBank Ltd to the National Consumer Tribunal for contraventions of the National Credit Act 34 of 2005 (NCA).
The investigation conducted by the NCR revealed that Ubank Ltd has, amongst others:-
- Granted credit recklessly to consumers;
- Granted credit to consumers who were in arrears on credit agreements with other credit providers and accordingly failed to take consumers’ debt repayment history into account;
- Included initiation fees in the principal debt of unsecured loans; and
- Incorrectly disclosed the interest rate on credit agreements.
The NCR has requested the imposition of an administrative fine and corrective measures to be taken by uBank Ltd to provide redress to the affected consumers.
National Credit Regulator
Tel: (011) 554 – 2722