Press Release: CASA warns consumers against illegal lending practices

(Pretoria, South Africa, 11 May 2026) The Credit Association of South Africa (CASA) has raised concerns about the growing prevalence of illegal lending practices as South African consumers continue to face mounting financial pressure. 

According to CASA’s Chief Executive Officer, Leonie van Pletzen, consumers seeking quick access to credit are increasingly vulnerable to lenders and credit arrangements operating outside traditional regulatory oversight and established consumer protection standards.

“Many South Africans are under severe financial strain and are looking for faster and more convenient access to credit,” she explains. “However, consumers must be extremely cautious of illegal lenders and lending arrangements that may expose them to excessive costs, hidden fees, unauthorised collections, and unfair lending practices.” 

Van Pletzen warns that illegal lending continues to pose a significant threat to financially vulnerable consumers, particularly where affordability assessments, disclosure standards, and consumer protections are absent or inconsistently applied.

Common risks associated with illegal lending include:

·        Excessive interest rates and undisclosed charges

·        Lending without proper affordability assessments

·        Confiscation of ID documents, bank cards, or SASSA cards

·        Unauthorised collection practices

·        Harassment, intimidation, and unlawful collections

·        Fraud, identity theft, and misuse of personal information

·        Limited consumer recourse and dispute resolution

Van Pletzen says the growth of alternative and evolving lending models further highlights the importance of maintaining a fair and sustainable regulatory environment across the broader credit market.

“A sustainable formal credit industry remains one of the strongest protections against illegal lending,” she explains. “It is important that regulated credit providers remain commercially sustainable and able to continue serving consumers responsibly within a balanced and updated rates and fees framework.”

CASA believes that the review of rates and fees under the National Credit Act remains an important component of protecting consumer access to safe, regulated credit while limiting the expansion of illegal lending activity.

“Consumers should always verify whether a lender is registered with the National Credit Regulator,” advises van pletzen. “They need to also ensure that all costs, repayment terms, and obligations are clearly explained before entering into any agreement.”

“We will continue to work closely with regulators, government, and industry stakeholders to strengthen financial inclusion, consumer protection, and responsible credit practices in South Africa,” she concludes.

About the Credit Association of South Africa (CASA)

CASA is South Africa’s leading association representing responsible and professional non-bank credit providers. CASA exists to enable credit providers to thrive and to build a sustainable credit industry that supports economic growth and financial inclusion across South Africa.

CASA brings together ethical and professional credit providers to build a fair, sustainable, and inclusive credit industry, reflecting a broader mandate and renewed purpose to serve the entire credit sector.

It is a member-based, non-profit association governed by an Annual General Meeting, an elected Board, and specialised Board Committees. CASA is registered as a Section 21 Company (1996/001116/08), with MVB Auditors as its auditors and Nedbank as its official banking partner.

About Leonie van Pletzen

Leonie van Pletzen is the Chief Executive Officer of the Credit Association of South Africa (CASA). With 15 years of experience in the industry, Leonie is recognised as a passionate advocate for ethical lending, financial inclusion, and regulatory reform. She brings a wealth of expertise in industry advocacy, corporate governance, stakeholder engagement, and sustainable development.

Leonie has played a key role in shaping policy dialogue between government, regulators, and the private sector, and is an active contributor on various national committees, including the National Credit Regulator’s Credit Industry Forum and the Banking Sector Education and Training Authority. Her leadership is defined by a commitment to protecting vulnerable consumers while ensuring the long-term sustainability of responsible credit provision in South Africa.

For interviews or further information please contact:

Claire Watt

The Friday Street Club

Tel: 082 490 3796

Email: claire@thefridaystreetclub.co.za