Shoprite found guilty of ‘reckless lending’
Shoprite Investments & Shoprite Insurance Company Limited will now have to face a tribunal.
JOHANNESBURG - The National Credit Regulator (NCR) says its investigation into Shoprite has revealed 'reckless lending' and the sale of insurance cover to people who can't possibly claim it.
This includes retrenchment and occupational disability cover to pensioners and consumers receiving social grants.
Shoprite Investments and Shoprite Insurance Company Limited will now have to face a tribunal and a possible fine.
The regulator's Jacqeline Boucher said, "These people would sell products that they would not be able to use. We found that Shoprite Investments had extended credit recklessly."
NCR also wants the retailer to be audited to reimburse consumers and to write off the reckless loans.