Regulatory News South Africa

Call centre intends to keep Lewis compliant

In a move to quell growing disapproval of its lending practices, furniture retailer Lewis will launch a call centre to enhance compliance, transparency and oversight of its in-store sales and credit-application process.
Photographer: Freddy Mavunda<p>Image source:
Photographer: Freddy Mavunda

Image source: Financial Mail

Lewis is struggling to shed its reputation as a reckless lender following customer-disclosures of hidden costs, poor affordability assessments and the sale of ancillary products.

Lewis and peers JD Group and Shoprite last year drew the ire of the National Credit Regulator, which referred the stores to the National Consumer Tribunal after it found evidence of reckless lending and breaches of the National Credit Act.

Relatively weak regulatory enforcement in the past is believed to have fostered poor compliance in the industry.

The new call centre at Lewis Group’s head office in Cape Town will employ 50 consultants at its launch in April. It will operate independently from Lewis’s customer care call centre.

Lewis said on Monday the aim was to limit misunderstandings of the costs, services and fees to be paid by customers.

CEO Johan Enslin believed Lewis had a strong future beyond the current economic and regulatory challenges. "We are committed to investing in initiatives such as this one that will support our strategy as we look to grow … through market share gains."

Lewis shares are down more than 15% this year, following last year’s torrid selloff that erased half of the company’s value.

In an update late last month, Lewis said revenue in the three months to December increased 1.1% from a year earlier, while merchandise sales were flat.

Source: Business Day

Source: I-Net Bridge

For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

Go to: http://www.inet.co.za
Let's do Biz