JOHANNESBURG - The Shoprite group has acknowledged that the findings of the National Consumer Tribunal that one of its subsidiaries extended credit to some of its customers to buy goods from its OK Furniture stores too easily.
The statement read, "This matter relates to credit agreements concluded in June 2013 and June 2014 with nine consumers from amongst thousands. In all these cases the credit extended was settled in full by the customers concerned. The National Credit Act is a complex piece of legislation, as acknowledged by the Tribunal. The credit granting offices adhere to strict measures and are satisfied that the current process serves the best interests of its customers and is in compliance with legislation."
The retailer was fined R1 million, the National Credit Regulator said in an emailed statement on Wednesday. Among other discrepancies, the Cape Town-based company took into account incomes from other people, such as spouses, when judging the ability of a borrower to repay loans, it said.
- BUSINESS REPORT