Summit Financial Partners has abandoned all legal cases against Capitec Bank, patching up a relationship that turned sour nearly three years ago when the consumer lobby group took the bank on over its payday loans, which have since been discontinued. Summit said at the time the loans were reckless because they failed to verify the financial standing of borrowers. The news will come as a blow to short-selling outfit Viceroy Research. In a February report that torpedoed Capitec’s share price, Viceroy said Summit’s cases could trigger a class-action lawsuit that would require Capitec to refund a minimum R12.7bn in initiation fees associated with the lending product, known as a multi-loan. But that is unlikely after Summit and Capitec said on Friday they had reached an out-of-court settlement. Capitec and Summit had agreed to work together on consumer financial literacy programmes and debt relief solutions, Capitec chief financial officer André du Plessis said. "The only party who is be...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.