NCR steps in to investigate reckless lending case against Nedbank

JOHANNESBURG – The National Credit Regulator has decided to step in to investigate a case of alleged reckless lending against Nedbank after reading about it in the press. It’s previously reports that retired education specialist, Myrlene Pieterse, approached the Ombudsman for Banking Services on behalf of a financially uneducated employee, contending that Nedbank engaged in reckless lending practices by not adequately explaining the implication of the credit.

The employee is facing financial strain. Upon receiving a personal loan of R30 182 from Nedbank, roughly 5.5 times her average monthly salary at an interest rate of 35.4%, she had to repay it over a period of two years. On top of that she was also granted two credit cards.

Previously, Nedbank had said it could not comment on individual cases due to legal considerations, but that it was committed to promoting a fair and transparent credit market.

Media Relations Officer at the NCR, Lebogang Selibi confirmed that that regulator was investigating the matter, but also said it could not provide any further information.

In an email to Pieterse, an adjudicator for the Ombud’s office noted that the office did not prescribe to the banks what their credit assessment policies should entail and that it could not interfere with the bank’s commercial discretion. He also indicated that the office didn’t have the necessary technical skills or resources to do a detailed and financially scientific credit assessment.

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