Debtfree DIGI October 2015

INDUSTRY
CONSUMER
NEWS FLASH
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NCR TAKE SHOPRITE
TO THE NCT
The National Credit Regulator (NCR) have been
on the rampage across the country going from
one retail credit provider to the next looking
into their insurance offerings. Several months
ago a newspaper expose’ revealed that a
credit provider was charging pensioners and
disabled customers insurance against disability
and income loss which they could never
actually claim. After the newspaper articles,
the NCR investigated and took the matter to
the National Consumer Tribunal (NCT). Since
then, the Regulator has been doing the rounds
looking for other similar violations. Their latest
stop has been with Shoprite Investments Ltd
and their insurance arm Shoprite Insurance
Company. The NCR’s investigation also
revealed that some credit had been issued in
a reckless manner. They have asked that the
NCT order these loans written off. The NCR’s
investigation further revealed that, in some
cases where finance was given over a 6 month
period, the insurance offered had a 6 month
waiting period. This means that consumer
could never have benefited from the insurance
but still had to pay anyway. The NCR say that
they want to protect vulnerable consumers.
They have asked the NCT to order, not only
a massive fine, but also that the effected
consumers get refunded.
BRIDGE NOT QUITE DONE
In a dramatic comeback from the brink of
liquidation and closing their doors, a last minute
hail Mary pass at keeping Bridge in business has
been voted for by shareholders and creditors,
keeping the sinking ship slightly afloat for the
moment. Bridge Corporate (owned by the
Aldum family), Bridge Credit and Onecor all
recently became victims of over promising on
returns while repayments on unsecured credit
were dropping and the acquisition of easy,
over the counter, rubber stamped garnishee
orders (EAOs) were drying up. In the past,
these firms were promising (and delivering)
amazing 19% returns (High, very high, perhaps
too high… way too high) but as payments by
debtors dried up, so payments dropped to 1%
PA, leading to a collapse of the entire structure
and a need for business rescue and eventually
the announcement of liquidation. Now, in a last
minute turn around, creditors have accepted a
plan to become preferred shareholders (they
get their money from any profits first, before
everyone else) instead of pursuing liquidation.
In typical keeping things ‘in house’ fashion the
man appointed to be the interim CEO of Bridge
during the business rescue came from working
as CFO at a company run by one of the directors
of Bridge itself. The business rescue has now
been terminated as the company has been
deemed to no longer be financially distressed.
In a new development, a co-CEO has been
appointed, with the new plan, putting one of