Operation Blitzkrieg clamps down on illegal collection tactics

"The operation dubbed 'Project Blitzkrieg' primarily focused on credit providers (both registered and unregistered) who are unlawfully retaining pension cards, bank cards, identity documents and PIN numbers of their clients as surety," says Advocate Zweli Zakwe, acting manager for investigations & enforcement at the NCR. "This is a contravention of the National Credit Act (NCA)."

The operation took place in De Aar, Petrusville, Noupoort and Colesberg in the Northern Cape where searches were conducted on premises belonging to both registered credit providers and so-called "skoppers".

Zakwe says this is part of the NCR's ongoing strategy to ensure that all credit providers, no matter where they conduct business, still comply with the provisions of the National Credit Act. "The exploitation of vulnerable and unsuspecting consumers by credit providers will not be tolerated."

Fifteen people were arrested, of which eight were skoppers and seven were people working for credit providers. Police also found the suspects in possession of an accumulative number of over 577 pension cards, 114 ID books and 620 bankcards.

Zakwe said the SAPS in the Northern Cape must be complimented for their excellent assistance they had provided to the National Credit Regulator during this operation and their willingness to assist consumers.

"This was definitely not the first of its kind. The NCR conducted a blitzkrieg in Port Elizabeth in October last year where three skoppers were prosecuted in March 2012. Such operations will be extended to other parts of the country and credit providers are warned that the National Credit Regulator will not condone these practices by credit providers," concludes Zakwe.

Port Elizabeth convictions:

• In the first matter, Joyce Schritch pleaded guilty to five counts of contravention of Section 133 of the National Credit Act 34 of 2005 (retention of pension cards as a collection method) and was sentenced to a fine of R5000 or 12 months imprisonment, wholly suspended for five years on certain conditions.
  
• In the second matter, Vusumzi Siphango pleaded guilty to 11 counts of contravention of Section 133 of the National Credit Act 34 of 2005 (retention of pension cards as a collection method) and was sentenced to a fine of R8000 or 12 months imprisonment wholly suspended for five years on certain conditions.
  
• In the third matter, Nomabana Mkabana pleaded guilty to 14 counts of contravention of Section 133 of the National Credit Act 34 of 2005 (retention of pension cards as a collection method) and was sentenced to a fine of R10 000 or 12 months imprisonment wholly suspended for five years on certain conditions.