6 November 2013, Johannesburg
The South African Communist Party (SACP) welcomes an announcement made on Tuesday, 5 November 2013, by the National Credit Regulator (NCR) that the National Consumer Tribunal “has cancelled the registration of Rufus Alfonso Financial Consultants CC” following “raids conducted by the NCR late last year into the business activities of the credit providers operating in Marikana”, North West Province.
“The investigation of the NCR revealed that Rufus Alfonso Financial Consultants CC granted credit to consumers recklessly, charged consumers interest in excess of the maximum prescribed rate and retained consumers’ bank cards, identity documents and pin codes”, said the NCR in its announcement, stating further that the credit provider was “ordered to refund consumers all interest monies charged in excess of the prescribed maximum rate”.
The Communist Party underlined the problem of micro-lenders and mashonisas in Marikana following the 3rd Plenary Session of the 13th Congress Central Committee held in March, this year. In addition to capitalist exploitation of the workers which has been deepened by the mining oligarchy financial services providers of all sorts, including banks, micro-lenders and mashonisas who sink workers in a debt-trap through reckless and unsecured lending practices, are primarily responsible for the tragedy that took place August last year in Marikana.
No fewer than 13 micro-lenders and more mashonisas as well as other financial services providers have been scavenging in Marikana through reckless and unsecured lending practices. The Rufus Alfonso Financial Consultants CC is possibly not the only credit provider in Marikana that has been heavily indebting workers who are charged excessive interest rates and coerced to borrow from one lender in order to pay another as they sink deeper in debt and their take home pay is liquidated.
The extortionist practices of retaining consumers’ bank cards, identity documents and pin codes practiced by Rufus Alfonso Financial Consultants CC are widespread. Linked with garnishee orders these have plunged many working class and poor households into a debt crisis, resulting in a wide range of social consequences.
The Communist Party reiterates its call for the investigation into reckless and unsecured landing practices to be broadened and carried out throughout in a larger scale. This must include a focus on the Big Four Banks. As confirmed by an earlier decision to impose a number of penalties on the African Bank after conducting a series of investigations which revealed gross abuses in its lending practices, banks are now competing with micro-lenders and mashonisas in the scramble of unsecured and reckless lending.
The Communist Party further reiterates its call for a second financial service sector transformation summit. The summit should take stock of the implementation of the 2004 agreements and develop further targets for the transformation and complete overhaul of the financial services sector.
Issued by the SACP
Contact
Alex Mashilo – Spokesperson
Mobile: 082 9200 308
Office: 011 339 3621/3
Email: alexmashilo.sacp@gmail.com