Shoprite responds to guilty ruling
The Shoprite Group says the matter which has landed them in hot water relates to only a handful of customers.
In a statement, the retail giant says it acknowledges the National Consumer Tribunal's finding.
Shoprite had been found guilty of reckless lending.
The National Consumer Tribunal has subsequently slapped the retail giant with a fine of R1million.
It follows an investigation by the National Credit Regulator.
Shoprite Group says the matter relates to credit agreements concluded in June 2013 and June 2014 with nine consumers from amongst thousands.
"In all these cases the credit extended was settled in full by the customers concerned."
#Shoprite Holdings has issued a statement with regards to it being found guilty of reckless lending. pic.twitter.com/PfTTzdbjKq
— Jacaranda News (@JacaNews) September 6, 2017
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.