Johannesburg - South Africa's credit regulator has asked a consumer tribunal to impose a fine on grocer and furniture retailer Shoprite for reckless lending, it said on Wednesday.
The National Credit Regulator (NCR) said Shoprite should also not have sold retrenchment and occupational insurance to pensioners and consumers receiving government welfare grants.
“The sale of retrenchment and occupational disability covers to pensioners and consumers receiving government social grants is unreasonable and imposes an unreasonable cost,” said Jacqueline Boucher, manager at the NCR.
The NCR said it would ask the National Consumers Tribunal, which adjudicates on such cases, to impose a fine on Shoprite, refund consumers and have “reckless” loans written off.
Shoprite said it was unable to comment on the announcement by the NCR because the retailer had not yet received any formal documentation from the regulator.
“Once such documentation has been received the relevant allegations will be investigated immediately,” Shoprite said.
In July, the regulator referred a case involving furniture retailer Lewis Group to the tribunal for allegedly mis-selling credit insurance. The Lewis Group said it would challenge the complaint.
REUTERS