legal action for credit providers retaining cards
01 February 2008
 
The National Credit Regulator (NCR) will take harsh action against credit providers who retain bank cards and personal information numbers, pension cards or identity documents of their clients. “The practice of retaining borrowers' bank cards will no longer be tolerated in the credit industry,” said NCR Senior Manager for Education and Strategy, Peter Setou on Tuesday.

He said retaining this information was prohibited in terms of the National Credit Act.

In addressing the areas of non-compliance, Mr Setou said the credit providers are required to return all bank cards and pension cards which are in their possession to all borrowers. He said credit providers should also destroy all records of pin numbers and auto teller access information in their possession. “NCR has bared its teeth against this practice by issuing Compliance Notices to 14 credit providers for contravening certain provisions of the National Credit Act, in particular the retention of this information,” he said. 

The credit providers have 15 business days to lodge their objections with the National Consumer Tribunal in respect of these Compliance Notices. Failure to comply with the notices, Mr Setou said will result in the matters being referred to the National Consumer Tribunal and the National Prosecuting Authority, which may institute legal action resulting in criminal prosecution.

Bathandwa Mbola, www.buanews.co.za