Microlender sets the record straight

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Copy of Copy of Copy of Copy of IOL mot may20 rand notes [1] . File photo: Reuters

The withdrawal of Blue Financial Services’s South African licence as a financial services provider did not affect its registration as a credit provider, the troubled microlender said.

In a Stock Exchange News Service statement on Wednesday, issued in light of recent publications in the press, the company said it remained registered as a credit provider with the National Credit Regulator. It said the withdrawal also did not affect its right to continue collecting instalments due in respect of credit agreements concluded with its customers.

It said Blue SA would continue to conduct its business as an asset rehabilitation entity. The licence of the diversified financial services firm to offer credit life insurance was withdrawn by the Financial Services Board in October. This followed its failure to publish two sets of financial results.

Credit life insurance ensures the repayment of a borrower’s loans in the event of his or her death. However, Blue said it was maintaining the insurance cover of its borrowers at its cost at present. Blue said the withdrawal of its licence did not affect the overall business activities of its subsidiaries in other African markets outside South Africa.

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