CAPE TOWN - South African retail bank Capitec has announced that they have settled a legal dispute with Summit Financial Partners, who accused the bank of breaking the country’s credit laws.
In 2016, Summit sued Capitec in early 2016, accusing it of breaking credit laws, and lending recklessly. Capitec has since denied the allegations.
In a statement on Friday (29 June), Capitec said that the case has been withdrawn.
“All Summit assisted and initiated court and NCR cases involving Capitec have been withdrawn. The principle contention in these cases was against the multi loan product which Capitec discontinued in February 2016.
“Both parties have agreed to work together in improving the unsecured lending industry for the benefit of all South Africans. This initiative will include programs to improve consumer financial literacy, providing effective consumer debt relief solutions and building consumer financial capability.