Shoprite fined R1million
Retailer Shoprite has been found guilty of reckless lending.
The National Consumer Tribunal has slapped the retail giant with a fine of R1million.
It follows an investigation by the National Credit Regulator (NCR).
The NCR found that Shoprite had entered into credit agreements with consumers without conducting reasonable and objective assessments of consumers' ability to afford loans.
The regulator says the finding relates to Shoprite's furniture retail arm which includes House and Home and OK Furniture.
NCR legal advisor, Nthupang Magolego, says in terms of the sanctions imposed, Shoprite must report back to the National Consumer Tribunal within 60 days on the steps taken to assist those customers who found themselves in debt as a result of the reckless lending.