The affordable education loan option
Cape Town - A Cape Town vendor who gave credit but kept customers' bank cards and pin numbers to ensure they paid their accounts, was fined R20 000 or three years in prison on Wednesday.
This was for multiple violations of the National Credit Act (NCA).
Faeza Mitchells, 36, appeared in the Bellville Specialised Commercial Crime Court before Magistrate Sabrina Sonnenberg who suspended half the fine and prison sentence for five years, and allowed Mitchells until November 8 to pay the remaining R10 000 fine.
She was also declared unfit to possess a firearm.
Her case took the form of a plea-bargain agreement, in which she pleaded guilty to 51 contraventions of the NCA.
Prosecutor Zama Matayi told the court that three of the 51
counts pertained to cash loans to customers, while the remaining 48 counts pertained to credit purchases made by her customers between February and May.
All 51 counts together involved a total of R21,543, Matayi said.
According to the charge sheet, Mitchells illegally advanced loans, or credit, to customers on the illegal condition that they agreed to pay unspecified interest to be decided by Mitchells herself.
To ensure the payment of accounts, or the repayment of loans, Mitchells illegally took her customers’ ID documents and bank cards, including ATM access cards, or SA Social Security Agency cards.