Clampdown on micro money lenders

The Social Security Agency clamps down on micro money lenders targeting pensioners.

Money.

CAPE TOWN - The South African Social Security Agency (Sassa) on Thursday warned unscrupulous loan sharks they will be arrested if they are caught soliciting money from pensioners and grant recipients, at payout points.

A government task team has been set up to get rid of illegal micro lenders charging sky high interest rates.

While some are charging a massive 25 percent interest on loans some go as high as 100 percent.

Sassa's CEO Virginia Petersen said many beneficiaries don't see their money as the cash is immediately handed to loan sharks.

"We've already had arrests in Gauteng and the Northern-Cape. We are dealing with the matter and would gladly accept information."

Petersen has urged beneficiaries to never ever handover their documents to loan sharks.

"We want to say to our beneficiaries, don't give your Sassa card or ID documents to the micro lender. If he wants that, then he's not an accredited lender."

If you have any information and would like to contact Sassa, dial the toll free number 0800-60-10-11.