Today's Labour News

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UbankSowetanLive reports that Ubank has learnt the hard way not to lend its clients more than they can afford to repay.  It has been found to have recklessly lent a mineworker R225,727 over five months without a proper credit assessment.  

The National Credit Act states that a credit agreement will be deemed to be reckless if the credit provider fails to conduct an assessment or fails to foresee the loan will make the consumer over-indebted.  The miner, who is from Lesotho and employed by Harmony Gold Mine, earns R6,792 a month and was required to repay R9,563 a month on his four loans.  He applied for a R17,967 loan from Ubank in 2015.  While he was still paying off the loan, he applied for three more loans in the same year.  Ubank lent him R72,118 in March, a further R6,722 in April and R71,391 in May.  Last month, the Ombudsman for Banking Services (OBS) instructed Ubank to write off R225,726.47 related to the four personal loan accounts linked to the miner.  This finding was made after Ithuseng Credit Solutions, which provides credit health improvement services to Harmony Gold employees, lodged a complaint against the bank on the miner’s behalf.  Ithuseng’s CEO Magauta Mphahlele said the company was pleased with the finding as it was difficult to prove reckless lending.

  • Read this report by Thuli Zungu in full at SowetanLive

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