Shoprite Probed for Reckless Lending by S. African Regulator
- Policies sold to pensioners, customers on state age grants
- Regulator calls for policy refunds, write-off of loans, fine
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Shoprite Holdings Ltd., South Africa’s largest food retailer and an operator of furniture stores, is being investigated for reckless lending practices, the country’s National Credit Regulator said.
Two of the company’s units, Shoprite Investments and Shoprite Insurance, sold job-loss insurance and occupational disability cover to pensioners and consumers who are receiving government social grants for the elderly, the Johannesburg-based regulator said in an e-mailed statement on Wednesday. Shoprite also sold a consumer a job-loss insurance policy for a six-month loan that had a waiting period of six months, said the NCR, as it’s known.