Capitec Accused of Reckless Lending, Business Day Saysby
Capitec Bank Holdings Ltd., a South African lender, has been taken to court over claims that the short-term credit facilities it offers to customers amount to “reckless lending,” Business Day said, citing court papers.
Summit Financial Partners has filed court papers in the Stellenbosch magistrate’s court claiming Capitec disguises its multiloan credit products as a series of short-term payday loans, the Johannesburg-based newspaper reported.
Capitec is aware of the court action and will respond accordingly, the newspaper cited spokesman Charl Nel saying. An e-mail to Nel was not immediately returned.
Summit alleges that Capitec has made unjustified revenues of more than 1 billion rand ($68 million) on its multiloan products in the past financial year, the newspaper reported.