Debtfree Magazine September 2018

litigation (court action) against
the company over other matters.
MSF, however, say this is not true.
Trouble is brewing as investors
are being told that Loxfin is a
financial services provider (or
FSP) but Loxfin had its FSP licence
withdrawn way back in 2012.
Loxfin and MSF are presented as
two cooperating companies, but it
turns out that they share the exact
same directors and even office
address and contact info. This is
not the only area of concern for
investors.
Loxfin and MSF are essentially
receiving loans from members
of the public (the investors) and
lending these to a 3rd party, thus
they are also conducting the
business of a bank which would
put them in contravention of the
Banks Act if true. As a result, they
have now attracted the attention
of the SA Reserve Bank who are
looking into the matter.
During a hearing at the National
Consumer Tribunal, the NCR
learned that MSF are currently
still collecting on debts even
though they cancelled their
NCR registration. The NCR say
they will now pursue new action
against MSF for doing so.