African Bank fined R700,000 for a misleading advertisement
African Bank has been fined R700,000 for a misleading advert encouraging people to take out loans under the guise of 'investment'.
The Financial Sector Conduct Authority (FSCA) imposed the administrative penalty after it found the advert to be in contravention of Conduct Standard 3 of 2020 (Banks).
According to the FSCA, the December 2023 advert was part of the bank's #KeFestive social media campaign which the regulator found to contain an incorrect and misleading statement.
'The advertisement, which featured a well-known public figure, encouraged consumers to take out personal loans with the phrase ' It's not a skoloto chomi! Ke investment'. The FSCA found the statement to be factually incorrect and misleading as it misrepresented the nature of the loan product that was on offer, implying that it was an investment rather than a credit facility,' said FSCA.
The body further said by misleading financial customers and failing to provide clear and accurate information about the nature of the product, African Bank contravened sections of the Conduct Standard. The law requires the bank to ensure that its financial products and financial services are advertised to customers in a way that is clear, fair and not misleading.
All financial institutions are urged to take note of this sanction and are reminded about the importance of providing clear and accurate information to financial customers regarding the nature of products and services being offered
Financial Sector Conduct Authority
The law further says the advert must be factually correct and not contain any statement, promise or forecast which is fraudulent and untrue.
The FSCA found deficiencies in African Bank's governance and oversight processes relating to the review and approval of the advertisement.
The FSCA said the bank was co-operating in the investigation of the matter, including the prompt remedial action taken to date to address the concerns raised.
The bank was fined R700,000 of which R200,000 was suspended for two years subject to African Bank remaining fully compliant with the Conduct Standard during the suspension period.
'The FSCA confirms that African Bank has paid the immediately due amount of R500,000. All financial institutions are urged to take note of this sanction and are reminded about the importance of providing clear and accurate information to financial customers regarding the nature of products and services being offered,' said the regulator.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
13 hours ago
- TimesLIVE
Former constable sentenced to six years for corruption
The Kuruman regional court in the Northern Cape on Friday sentenced former police constable Johannes Shuping to six years' imprisonment after convicting him of corruption. The conviction on two counts of corruption involved R10,000 that Shuping solicited from a member of the public. 'The charges relate to a 2018 incident in which Shuping, then a detective at Kathu police station, rearrested the complainant, Buti Moepadira, despite the case already being before the court,' National Prosecuting Authority spokesperson Mojalefa Senokoatsane said. After his arrest, Shuping offered to 'make the docket disappear' in exchange for a payment of R11,000. 'Moepadira, who was detained at Kathu police station due to a lack of accommodation in Kuruman, was allowed by Shuping to use his cellphone to arrange the payment. A R6,000 cash payment was delivered to the accused by the complainant's brother.' Shuping continued to demand the outstanding R5,000, prompting Moepadira to report the matter to the Hawks. 'A sting operation was then conducted using marked banknotes provided by the investigating officer. During the operation, the complainant's brother handed over the remaining R4,000 to the accused. Shuping fled the scene but was arrested a week later at his workplace.' At the time of his arrest, he was found in possession of marked R200 notes, which matched the serial numbers recorded during the operation. Prosecutor Kagontle Redemption Barnett took over the case after the original prosecutor was appointed to the bench. In aggravation of sentence, she argued that Shuping had grossly abused his position of authority and violated public trust. As a law enforcement officer, he was duty-bound to uphold the law, but instead chose to betray his oath and the constitution. Barnett emphasised that a strong sentence would deter similar conduct and reinforce public confidence in the criminal justice system. The court concurred and sentenced Shuping to six years' imprisonment on each count, with the sentences ordered to run concurrently. 'The NPA welcomes the conviction and sentence. This outcome reaffirms that no one is above the law and underscores the importance of protecting the integrity of the criminal justice system by holding those who abuse their power accountable,' Senokoatsane said.
TimesLIVE
13 hours ago
- TimesLIVE
Omoda launches new C9 PHEV in Mzansi: pricing and specs
The C9 PHEV also comes equipped with a comprehensive suite of driver assistance and safety features. These include adaptive cruise control, autonomous emergency braking, blind-spot monitoring, rear cross-traffic alert and braking, lane departure warning and prevention, lane change assist, and traffic congestion assist. Additional systems include front and rear parking sensors, a 540° camera view and a full complement of airbags (front, side, curtain, driver knee, and bolster). Priced at R999,000, the Omoda C9 PHEV includes a seven-year/100,000km service plan, a seven-year/200,000km vehicle warranty, and a 10-year/200,000km warranty for certain electric drivetrain components. It also carries a 10-year/one-million-kilometre engine warranty and a 10-year/unlimited kilometre battery warranty for the first owner (reverting to 10 years/200,000km for subsequent owners). Buyers also receive seven years of roadside assistance.
The Citizen
14 hours ago
- The Citizen
Suspect carjacker denied bail
A 25-year-old suspect was denied bail by the Pretoria Magistrate's Court for a case of possession of a stolen vehicle. The arrest took place on May 30, around 18:00, by the Pretoria Central SAPS's Crime Prevention Team in partnership with Tracker. Spokesperson Constable Thabang Nkhumise said the team received a lookout call via radio control. They followed the lead and shortly afterwards, and managed to corner the stolen vehicle on Eeufees Street, near the N14. 'All the relevant stakeholders were called to the scene. The suspect was later taken in for detention and charged with possession of a stolen vehicle while the vehicle was booked in at the exhibit store VIS unit. Upon profiling, it was discovered that the suspect has a pending case related to car stealing and possession of dagga with cases at other police stations within the province,' Nkhumise said. The team, consisting of three constables, namely Freedom Sambo, Nyiko Olifants, and Nhlayiso Zitha, and the tracker team, managed to corner the vehicle at the above-mentioned address. The vehicle, a white Toyota Hilux 2.4 GD6 bakkie, had an estimated worth of R200 000. The station commander Brigadier Gibin Hlengani Mashaba welcomed the arrest and applauded all the role players for their efforts to put the suspect behind bars. He stated that the case has been allocated to the branch detectives, and they will ensure that the case receives a good conviction. Motorists are urged to be vigilant and very cautious of their surroundings, and also to take safety precautions while travelling at any time of the day. Police advised residents to avoid offering lifts, as this is also one of the leading factors causing hijackings. The suspect was remanded into custody and will reappear at the Pretoria Magistrate's Court at a later date, pending further investigation. ALSO READ: East residents warned of theft out motor vehicles Do you have more information about the story? Please send us an email to bennittb@ or phone us on 083 625 4114. For free breaking and community news, visit Rekord's websites: Rekord East For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading! Stay in the know. Download the Caxton Local News Network App Stay in the know. Download the Caxton Local News Network App here
