LOAN SHARKS TARGET PENSIONERS


 

Soshanguve residents hoping to get a loan outside the telephone container.

HOPE MOTAU

A group of women who receive social grants, gathered outside the telephone container last week at Soshanguve Block H, in the hope of obtaining a loans.

The elders and women receiving child support grants went to the loan sharks that started operating in December 2012. They only give loans to social grant beneficiaries, depending on how much money they receive from South African Social Security Agency.  After giving the loan, the service provider will later withdraw money with interest directly from their social grants on a monthly basis depending on how much the client loaned.

The police have closed the business last week as they say that it was illegal and was not registered with the National Credit Regulator. The unnamed service provider, who was working at a telephone container in Block H, closed their doors for a short period and later re-opened after the police left.



Women of different ages gathered outside the telephone container at Block H, Soshanguve.

Mpho Mabela, a loan seeker told Record that the two employees working at the container told the clients that the police wanted a bribe from them to operate. Mabela said that they were told that the business was legal and amalgamated with Sassa.

 "Their interest rate is affordable and they do not withdraw the money we loaned at the same time like informal cash loaners. They withdraw a little amount every month until our credit is settled," said Mabela. Paulinah Chabalala, who was in need of loan said: "The police must leave the service provider alone because it is better than other “Mashonisa`s” (township moneylender) around Soshanguve. They do not keep our social grant cards and ID books," said Chabalala.

According to Chabalala they will continue to use the service provider regardless of whether they were illegal or not. When Record arrived, the two employees failed to produce the formal certificate from National Credit Regulator and later denied to talk after Record questioned them.

The clients never enquire about the NCR certificate, since they get the money they want.Captain Marinde of the Soshanguve police station said: “That cash loan business is illegal and under investigation. That is why the police closed it on the day.”