Reckless Credit Loans

• Accused of granting indebted consumers with reckless credit loans by NCR – uBank denies allegations
• 80% of uBank’s R1 billion loan book went to the gold and platinum mining communities
• Wholly own by Teba Trust - jointly administered by National Union of Mineworkers (NUM) and the Chamber of Mines
• NCR investigations revealed uBank granted credit to consumers in arrears on credit agreements with other credit providers and incorrectly disclosed the interest rate on credit agreements
• NCR referred uBank to National Consumer Tribunal for breaching National Credit Act
• Requested uBank pay a fine and take corrective measures to compensate consumers i.e. removal of credit bureau listings

• Accused of reckless credit loans to companies involved in fraudulent ‘reverse mortgage’ schemes in breach of National Credit Act
• A reverse mortgage scheme involves a company offering loans to blacklisted people and the only requirement is to own property BUT
• Instead of using the house to secure the loan, they transfer the title of the house to the company and take out a bond for a higher amount with an reputable credit provider like Standard Bank – which the debtor then has to pay off
• At least 20 cases of reverse mortgage schemes in court
• Fraudulent companies are Dreamworld and Asset Management Specialists (AMS)
• AMS conned more than 150 people– 35 involved Standard Bank
• Standard Bank failed to investigate Dreamworld and AMS properly