Premium Essay

National Credit

In: Business and Management

Submitted By poojabechoo
Words 4144
Pages 17
NATIONAL CREDIT ACT- 2005

Money lenders breaking credit act exposed
Cape Town - In a bid to stem the abuse of consumers by lenders and ensure compliance with the National Credit Act (NCA), the National Credit Regulator (NCR) and the South African Police Service (Saps) conducted joint onsite investigations in an operation in Mpumalanga.
The NCR partnered with the Saps in Middleburg, Barberton, Nelspruit and Witbank this week, investigating 37 lenders. This led to the arrest of ten individuals who contravened the NCA.
"The focus of this kind of operation is primarily on credit providers, who are engaging in reckless lending, unlawfully garnishing, retaining pension cards, bank cards, identity documents and personal identity numbers (PINs) of their clients as surety," said Nomsa Motshegare, CEO of the NCR.
"This is a contravention of the National Credit Act and it is a criminal offence", she added.
Motshegare stated that this is part of the NCR's ongoing strategy to ensure that all credit providers, no matter where they conduct business, comply with the provisions of the National Credit Act.
"The exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated," she added.
During the operation, ten people were arrested and as a result, nine criminal cases were opened. In addition, the suspects were found to be in possession of 851 ID books and 921 bankcards, six passports, two drivers licenses and 44 cellphones.
Motshegare complimented the Saps in Middleburg, Barberton, Nelspruit and Witbank for their assistance to the NCR during this operation, and for their willingness to assist consumers.
"This operation was definitely not the last of its kind. Such operations are conducted nationally in different parts of the country. Credit providers should be warned that the NCR will not condone any contraventions by credit providers",…...

Similar Documents

Free Essay

National

...Defining the National Library Building Project Specific The project must be specific. Being specific includes detailing out the project's structure, goals, benefits, milestones and costs. When building NLB there was a structure goal that it is to become an independent Library in Singapore. The benefits is that to provide public access to the Library resources and materials to provide references for local scholar and local students so that they can access and borrow books. The milestones of the NLB is it was developed during 19th century. The project was completed and came to effect on 1st April 1958. In 1994: Dr Christopher Chia become the first CEO and NLB Board formation was started Reference section was opened in 1996.The cost build NLB was 203 million estimated. It is located in bugis, Singapore and it is a 16-stoery building. Measurable The project must be measurable in terms of its benefits and achievements. There should be tangible, intangible as well as in terms of monetary benefits. It has benefited local scholars by having a reference library. It has been very useful for students where they could access estimation of six million books. It has been a reliable library for many local students and it provide tangible trusted reference services. It has become a well-known knowledge institution in the people's mind. It has achieved 2nd place in Asian Libraries website competition. NLB also won National IT award for innovative use of IT in 1998. In 2005, NLB was......

Words: 566 - Pages: 3

Free Essay

Credit

...Essay on Credit What does mean “to be credit wise”? Being credit wise means use rationally the plastic card as well as to understand how to make good credit, and how to avoid different traps. Credits cards help many students to get financial freedom and desirable independence. Each student should use the credit card wisely as lately it helps him/her to reach the goals such as fulfill educational dreams or to buy a car. Credit card monitoring is important things for students that just require some common sense and responsibility. Our Service Can Write a Custom Essay on Credit for You! In fact, there are a lot of tips how to monitor the credit for getting good one. Following them student can easily prevent all possible trouble situations. Here are some of them: 1. Student should develop reasonable budget for each month, be thrifty and be able to stretch the money. 2. Student should not delay with bills payment. All the bills must be paid on time as in other case even one late payment can negatively impact on the student’s credit score. 3. If the student experiences some problems with bills payment, he/she should immediately provide the creditors with the changes. Student must keep in mind that this is his/her responsibility to inform the creditors about the changes. 4. The minimization of the card debt is also very useful in the student’s case. It is better not to exceed 30% of the available credit limit. 5. Charging more on the student’s card than the......

Words: 481 - Pages: 2

Premium Essay

Credit

...4 Demand for Credit: Companies demand credit for various operating, investing and financing activities. Operating activities – many companies have cyclical operating cash needs. For example, manufacturers of inventory or retailers that purchase merchandise for the end of year holiday season. Investing activities – companies routinely require large amounts of cash for investments including purchases of new equipment and property and for corporate acquisitions. Important for start-ups and growth companies. Financing activities – for issuance of debt for repayment of maturing debt obligations or the repurchase of common stock. Supply of Credit: Trade credit – from supplies is routine and most often non-interest bearing. Bank loans – banks structure financing to meet specific client needs. Bank regulators require that banks hold capital in proportion to their loan portfolio. Revolving credit lines – loans that companies draw on as needed. They are like credit cards because a company can take cash out as needed and make payments as cash is available. Lines of credit – are guarantees that funds will be available when needed. These LOC act as backup or interim financing. Letters of credit – facilitate private international transactions. A letter of credit interposes a bank between the two parties to a transaction. The letter provides a guarantee of payment from the buyer. The benefit is that is substitutes the bank’s credit rating for......

Words: 284 - Pages: 2

Free Essay

Credit

...District, South Wollo Zone, Amhara National Regional State, Ethiopia Zelalem Gebeyehu1*, Hassen Beshire1 and Jema Haji2 1 Department of Economics, Wollo University, P.O Box. 1145, Dessie, Ethiopia. * Corresponding author Email: zelalemgebeyehu1936@gmail.com 2 Department of Agricultural Economics, Haramaya University, P.O Box.138, Dire Dawa, Ethiopia. ____________________________________________________________________________ ABSTRACT In this study to compare defaulters and non-defaulters in terms of different explanatory variables and determine the extent of default in the repayment of loan offered to smallholder farmers in the study area were assessed. Smallholder farmers require improved agricultural technologies, knowledge and inputs such as fertilizer, improved seeds, pesticides and others that help to increase production and productivity thereby transforming their farm structure and capacity. Large investment cannot be made by the farmers out of their own funds because of their low level of incomes. Even though there are attempts to solve these rural financial difficulties by the government through extending rural financial institutions, because of social, economic and institutional factors, a number of farmers turned out to be defaulters. When such difficulty arises, the lending institution faces a problem. This study focused on the analysis of determinants of loan repayment performance of smallholder farmers in Kalu district, Amhara National Regional State. In......

Words: 7778 - Pages: 32

Premium Essay

National

...National Bookstore: A Profile Of Its Marketing Mix Product National Bookstore offers a wide range of products from the retail sale and distribution of books to the sale of various school supplies. National Bookstore’s products, specifically the school supplies, are mostly aimed for the students’ and office workers’ consumption and needs. However, the customers of National Bookstore are not limited to just students and office workers. The company also caters to kids through the sale of toys, coloring books, crayons and et cetera. Adults are also customers of National Bookstore since they avail of the various selections of books that National has to offer. Students and other consumers as well know that National Bookstore offers products of good quality and of affordable prices that are of great benefit to the consumers. National Bookstore also offers branded school supplies like Staedler, Stabilo, Cattleya, and et cetera. However, National Bookstore also offers their own product line named Best Buy which is more affordable than other brands. In effect, National Bookstore gives the option to its consumers to choose the products and brands that suit their tastes and that fit in their wallet. National Bookstore products have become a necessity for students and office workers. So much so, that Filipinos equate and refer to bookstores as National, like how photocopying is equated to Xerox and marker to Pentel. Filipinos rely so much on National Bookstore providing them......

Words: 325 - Pages: 2

Free Essay

Credit Management and Performance Evaluation of National Bank Limited”

...“Credit Management and performance evaluation of National Bank Limited” Chapter – 01 Introduction OF THE REPORT 1.1 Introduction National bank limited (NBL) is a full service scheduled commercial bank. It has both local and International Institutional Shareholder. The bank is primarily driven with a view of creating opportunities and pursuing market niches not traditionally meet by conventional banks. National Bank has been motivated to provide “best-in-the-class” services to its diverse assortment of customers spread across the country under an on-line banking dais. Today, National Bank is one of the fastest growing banks in the country. In order to support the planned growth of its distribution, network and its various business segments, National Bank is currently looking for impressive goal oriented, enthusiastic, individuals for various business operations. The bank wants to build a profitable and socially responsible financial institution. It carefully listen to the market and business potentials, It is also assisting stakeholders to build a progressive, healthy, democratic and poverty free Bangladesh. It helps make communities and economy of the country stronger and to help people achieve their financial goals. The bank maintains a high level of standards in everything for our customers, our shareholders, our acquaintances and our communities upon, which the future affluence of our company rests. Risk is inherent in all aspects of a commercial......

Words: 13236 - Pages: 53

Premium Essay

National

...Debra K. Godfrey National Security Agencies June 1, 2015 BIS/221 University of Phoenix Memorandum To: Mark Bentcover CC: Classmates of BIS/221 From: Debra K. Godfrey Date: 6/1/2015 Re: Surveillance by national security agencies Wiki leak is an organization that deals with journalistic activities involving the publishing of information considered secret with unknown sources. Recently documents came up known as the Snowden documents showing how staff working for wiki leaks have been victims of surveillance by both the United states as well as British national security agencies. This was a very serious document that show how agencies of the government go to the extents of tapping communication channels for those working at wiki leaks together with those who support it. It has been a very crucial aspect that puts into spotlight the ethics surrounding the whole situation. This surveillance is not backed by warrants and this makes it illegal for the agencies to perform such activities. It is a form of violation of privacy and it also violates people’s right to express themselves as well as do their activities at their own privacy. It creates a sense of being watched. Just think when you are under surveillance you are being watched, making it possible for people to get the following information: 1. Name 2. Birthdate 3. Social Security Number 4. Address 5. Personal Information 6. Banking Information Scary is it? The next time you are......

Words: 587 - Pages: 3

Premium Essay

Credit

...Building Good Credit Today, parents are unsure on when and how they can guide their teens to start building up their credit. First, they need to encourage their teens to get a job. Second, parents need to talk to their teens about saving techniques and opening up their own bank accounts. Third, teens should apply for a credit card for themselves; if not possible then become an authorized user on their parents’ credit cards. Fourth, teens need to be aware that the more inquires they make for credit cards; the more that it can hurt their credit. Fifth, teens need to understand that they need to pay their bills on time or suffer the consequences. Finally, teens need to use their credit card wisely and responsible in order to build their credit. It is wise for parents to encourage their teens to withhold a job. When teens are working for their own money they tend to be more cautious towards spending it. Without their own income, they will expect their parents to continue paying for everything” (Todorova). Law requires credit card issuers to check income for applicants under age 21.”  Credit card issuers do such things to assure themselves that the teen will be able to repay their credit card balances. The next step in guiding teens to build up their credit is for parents to have a mature talk about money saving techniques and opening up their own bank account. “Establishing a good banking history can help your child build a strong financial foundation, which is a stepping......

Words: 818 - Pages: 4

Premium Essay

Credit

...Credit Card Use September 15, 2010 The article I found about interest rates is called “Credit Where It’s Due.” This article talks about credit unions and how they offer lower rates and how they are becoming more popular. This article states that more people are looking into credit unions because of lower interest rates and higher savings rates. I think it is relevant to credit card use because if more people saw this article, more people would think about joining these credit unions and receive lower interest rates on credit cards. Article 2 is called “Win at the Credit Scoring Game.” And is about credit reports and ratings. The first thing you need to do is learn your score. They also say that you should never, ever be late on payments. Also always remember the “magic 20%. This 20% is about how much you owe compared to how much credit has been extended to you. This article is relevant to credit card use because it tells you what to do if you spot an error, how to improve your score. All the things that people should realize if they have a credit card. The article that I found is about money management and is called “5 East Cost Cutting Tips”. It includes things like to stop paying credit card interest rates, get a better price no Internet service, slash cell phone costs, reconsider landlines, and reducing bank fees. This article gives you all the ways you can cut and how to do each. This article is relevant to the topic of credit card use because it shows you......

Words: 381 - Pages: 2

Premium Essay

Credit

...1. Most credit cards require that you pay a minimum monthly payment of two percent of the balance. Based upon a balance of $5,270.00, what would be the minimum monthly payment (assuming no other fees are being applied)? I found that the minimum payment that I would be making is $104.40 per month because it is two percent of $5,270. 2. Considering the minimum payment you just calculated, determine the amount of interest and the amount that was applied to reduce the principal. Hint: You’ll need to find the total interest for the year first. The total interest for the year would increase my balance of $5,270 to $6,823. If I determine the amount of interest that will go into my monthly payments, then my payments will be $136.46 instead of $104.40. 3. Consider one of your credit cards. What is the balance? How is the minimum monthly payment determined? What would be the minimum payment? How much of the minimum payment goes towards interest? How much of the minimum payment goes towards the principal? If you do not want to share an actual balance or do not have a credit card, calculate these amounts using an imaginary credit card balance. My fake credit card would have a balance of $10,000. The minimum payment per month is determined based on my income. The minimum would be 5% of the $10,000. Two percent of the minimum payment would go towards interest. One percent of the payment would go towards the principle. 4. Now, examine the terms of one of your credit cards......

Words: 605 - Pages: 3

Free Essay

Credit

...Ian W Marsh The effect of lenders' credit risk transfer activities on borrowing firms' equity returns Bank of Finland Research Discussion Papers 31 • 2006 Suomen Pankki Bank of Finland P.O.Box 160 FI-00101 HELSINKI Finland + 358 10 8311 http://www.bof.fi Bank of Finland Research Discussion Papers 31 • 2006 Ian W Marsh* The effect of lenders’ credit risk transfer activities on borrowing firms’ equity returns The views expressed are those of the author and do not necessarily reflect the views of the Bank of Finland. * Cass Business School, London, and Bank of Finland. E-mail: i.marsh@city.ac.uk. This paper was written while the author was visiting the Research Unit of the Bank of Finland. The Bank’s hospitality was exemplary and I am grateful to participants at the Research Unit’s Summer Workshop, the Bank of Finland Economics Seminar, Iftekhar Hasan, Tuomas Takalo, and Wolf Wagner for comments. Susan Yuska at the Chicago Fed was very helpful in guiding me through the Bank Holding Company Database. http://www.bof.fi ISBN 978-952-462-340-7 ISSN 0785-3572 (print) ISBN 978-952-462-341-4 ISSN 1456-6184 (online) Helsinki 2006 The effect of lenders’ credit risk transfer activities on borrowing firms’ equity returns Bank of Finland Research Discussion Papers 31/2006 Ian W Marsh Monetary Policy and Research Department Abstract Although innovative credit risk transfer techniques help to allocate risk more optimally,...

Words: 9763 - Pages: 40

Premium Essay

Credit

...& Laman, V.P. (2010)., the birth of the credit system has made the use of the documents covering credit transactions both imperative and important, such documents are known as credit instruments. While credit transaction need not be evidenced by written contract, nevertheless, it appears sufficiently clear that it is better than they are. Credit instruments are documents that serve as an evidence of debt, this defines the responsibility of the debtor to his creditor and the right of the creditor to collect from the debtor at the specified time. Bonds are promises of the payment of interest and principals to the holder at a particular time. It is a written or printed acknowledgment of debt. It is a certificate of liability or obligation. Bonds are debt and are issued for more than one year. Stocks are permanent invested capital contributed by the stockholders or owners of a corporation which are proved by certificates. It is a share of a company held by an individual. Miranda (2001) defined check as a written order drawn by a depositor, directing it to pay on demand a specified sum of money. Check is the most commonly used bill of exchange. It is a written, dated and signed instrument. Promissory note is the simplest form of a credit instrument. It is a written promise of an individual to pay a certain amount of money at certain time in the future to an appointed person or bearer. II. Kinds of credit instruments Credit instrument existed before coinage. In......

Words: 2422 - Pages: 10

Premium Essay

Credit

...University of Phoenix Material Credit History Worksheet Directions Identify the following factor descriptions to their corresponding C of credit. Highlight, bold, or underline the correct answer. 1. Jack and Jill want to buy a car. They are using another car for ___________ as a promise to pay. a) Capacity b) Capital c) Collateral d) Character e) Conditions 2. Under these _______________, you may still be approved with a cosigner. a) Capacity b) Capital c) Collateral d) Character e) Conditions 3. Henry has a history of not staying with a job for an extended period of time. Which of the C’s would a lender be looking at? a) Capacity b) Capital c) Collateral d) Character e) Conditions 4. Madaline is a stay-at-home mom seeking to start a home-based business. She would need a cosigner in order to qualify for a loan. What other C’s might she need for this loan? a) Capacity b) Capital c) Collateral d) Character e) Conditions 5. Lenders use a debt-payment-to-income ratio to evaluate this particular C. a) Capacity b) Capital c) Collateral d) Character e) Conditions Credit Score Resources: • Five C’s web page located at the following link: http://www.loanuniverse.com/credit.html. • Annual Credit Report website www.annualcreditreport.com. • Fair Isaac website......

Words: 820 - Pages: 4

Premium Essay

Credit or Not

...benefits? There is! Credit cards and most Americans should use them. It is estimated that 80% of American households have at least one credit card (Fast facts about credit card debt, 2006, para 10.) There are many types of credit cards, allowing anyone to choose the one best suited for his or her needs. Although there are some disadvantages to using credit cards, the advantages outweigh them by far. Most important, using credit cards can help to build credit history, which will allow the user to gain more credit and maintain a good credit score. Many types of credit cards offer perks or rewards and different interest rates (APR). One type of card is a major credit card such as Visa, MasterCard, Discover, and American Express. Each of these may offer rewards or perks such as frequent flyer miles, points for merchandise, travel, car rentals, or cash back. Another type of card is a store or gas station credit card; this type of card is issued by a particular store or gas station. These cards usually come with some sort of a rewards program, helping your dollar go further. For example after spending a certain amount of money, you receive a 10% discount coupon toward a future purchase. Many credit cards offer low interest rates to new members, on balance transfers and to members who keep their account in good standing. However, missing payments or paying them late could result in your interest rate being raised to a higher percentage. Using credit cards can offer......

Words: 1001 - Pages: 5

Free Essay

Credit

...the world. Rohit: Yes dude, the job here is amazing, I get to interact with people around the world, investment managers – who want to invest millions of dollars Me: great…so tell me something interesting. What’s your job all about? Rohit: You know there is a great demand for American home loans, which we buy from the U.S. banks. We then convert these into what is called as CDO’s (Collateralized Debt Obligations). In plain English – this refers to buying home loans that banks had already issued to customers, cutting them into smaller pieces, packaging the pieces based on return (interest rate), value, tenure (duration of the loans) – and selling them to investors across the world after giving it a fancy name, such as ‘High Grade Structured Credit Enhanced Leverage Fund’. Me: Wow! I would’ve never guessed that boring home loans could transform into something that sounds so cool! Rohit: hahaha…actually we create multiple funds categorized based on the nature of the CDO packages they contain and investors can buy shares in any of these funds (almost like mutual funds…but called Structured Investment Vehicles or SIV’s) Me: Dude, you make your job sound like a meat shop…chopping and packaging. So, in effect when an investor purchases the CDO’s (or the fund containing the CDO’s), he is expected to receive a share of the monthly EMI paid by the actual guys who have taken the underlying home loans? Rohit: Exactly, the banks from whom we purchased these home loans send us a monthly......

Words: 2208 - Pages: 9